Key Outcomes of COP29 Climate Change Conference

Known as the "climate finance COP," this summit saw representatives from all nations seeking to establish a new, higher climate finance goal. One of the most anticipated outcomes of COP29 was an agreement on a new collective quantified goal (NCQG) for climate finance. This goal aims to replace the annual $100 billion target set at COP15, which has been criticized as insufficient and inadequately mobilized. The NCQG represents a more dynamic, needs-based approach to climate finance.

At COP29, a new global climate finance goal was set to mobilize $300 billion annually for developing countries by 2035. This goal includes public funds, development bank loans, and private investment mobilized by governments.

The NCQG has been a contentious point in climate negotiations. Developing countries argue that trillions of dollars are needed to transition to cleaner economies. According to The Guardian, many nations consider this figure too low to meet the actual needs of reducing emissions and addressing the climate crisis.

Developed countries have responded to this agreement by emphasizing that the commitment of $300 billion annually is a significant step forward from the previous $100 billion pledge. They argue that this is the most feasible level of finance that can be achieved in the current political context. However, they also acknowledge the need for greater efforts and international cooperation to achieve the long-term goal of $1.3 trillion and truly address global climate challenges.

Unlocking the Global Carbon Market

COP29 has reached an agreement on the rules for a UN-backed global carbon market. This market will facilitate the trading of carbon credits, incentivizing countries to reduce emissions and invest in climate-friendly projects. The consensus on a global carbon market represents a significant breakthrough, resolving a longstanding stalemate and bringing the Paris Agreement's ultimate goal closer to realization.

Nations have agreed on how the carbon market will operate under Article 6 of the Paris Agreement, including trading between countries (Article 6.2) and a mechanism for carbon credits (Article 6.4), setting a new standard for carbon credit markets.

Article 6 of the Paris Agreement provides the framework for a carbon market, ensuring a credible and transparent carbon market for countries as they cooperate to achieve their climate goals. This cross-border cooperation is expected to reduce the cost of implementing countries' Nationally Determined Contributions (NDCs) by up to $250 billion annually. This is a major milestone, ending a decade-long wait and unlocking a critical tool to keep the 1.5-degree goal within reach.

Other advances at COP29

COP29 also successfully addressed climate reporting transparency issues, finalizing new reporting tools for the Enhanced Transparency Framework (ETF) of the Paris Agreement on climate change, contributing to stronger climate policies and identifying financing needs.

COP29 established a program to support the implementation of National Adaptation Plans (NAPs) for least developed countries.

COP29 also witnessed the launch of the Baku Dialogue on Water for Climate Action, a platform to foster cooperation and initiatives accelerating solutions to the water crisis.