The 2024 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC (COP29), which was held in Azerbaijan, concluded following intense negotiations, marked by late-night discussions and compromises that underscore the nature of these global gatherings, says Allegra Ianiri, research analyst at MainStreet Partners.
While the outcomes reflect incremental rather than transformative progress, the agreements reached provide a critical framework for future action.
The decisions taken at Baku offer a foundation to build upon at COP30 in Belém, focusing on scaling up mitigation and enhancing implementation mechanisms.
Key achievements
Despite negativity surrounding what was known as ‘The Finance COP’, there were some great achievements and agreements made during the conference which will go a long way to combating climate change and sustainability.
1. New Climate Finance Goals (NCQG)
The $100 billion annual target was replaced with an ambitious framework: $300 billion annually for developing countries by 2035, supported by a broader target of $1.3 trillion globally from public and private sources. Although this falls short of the demands of vulnerable nations, it represents a step forward in scaling climate finance.
2. Advancements in Carbon Markets (Article 6)
After nearly a decade of discussions, the framework for Article 6 was finalized, introducing the Paris Agreement Credit Mechanism (PACM) and a unified UN registry for carbon credits. While this framework requires further refinement to ensure robust safeguards and environmental integrity, it signifies progress in the contentious area of carbon markets.
3. Progress on Adaptation
COP29 concluded with an agreement to use no more than 100 indicators for reporting on adaptation progress, offering flexibility for countries to tailor approaches to local circumstances. The Baku Adaptation Road Map was also established, emphasizing the integration of scientific knowledge and the IPCC’s role in advancing the Global Goal on Adaptation (GGA).
Challenges and future needs
The outcomes of COP29 highlight persistent challenges in addressing the global climate crisis. Climate finance remains insufficient, with current flows falling short of the vast needs for a successful climate transition and the demands of developing countries.
Key issues were deferred, including the implementation of the Global Stocktake and clearer guidelines for future Nationally Determined Contributions (NDCs), leaving these vital topics for future negotiations. Moreover, no new commitments on emissions reductions were made, even as the escalating costs of climate-related losses emphasize the urgent need for proactive mitigation efforts.
But encouragingly enough, and despite the mood music in much of the popular press, the global economy is steadily transitioning toward sustainability, propelled by increased commitments from state and non-state actors. Notable initiatives at COP29, such as the Global Energy Storage and Grids Pledge, aim to accelerate renewable energy deployment, targeting a sixfold increase in energy storage capacity and a massive expansion of renewable grids by 2040.
While 670 GW of renewable energy were added to grids last year, capacity constraints blocked 3,000 GW of untapped renewable potential, highlighting the urgency of infrastructure expansion.
Additionally, accountability and transparency are becoming central to green initiatives, with private sector actors increasingly aligning financial performance with sustainability targets. Regulatory momentum is also growing, as over 100 countries now have green or sustainable finance regulations, a 40% increase since 2020.
Looking Ahead
The outcomes of COP29 lay the groundwork for COP30 in Belém to advance critical issues, including scaling mitigation efforts and improving adaptation mechanisms.
Achieving transformative change will require stronger commitments, enhanced transparency, and coordinated global efforts to align financial flows with climate goals.
While challenges persist, the incremental progress made at COP29 provides hope for a more sustainable and resilient future.
By Allegra Ianiri, research analyst at MainStreet Partners
