COP29 Climate Conference: Unpacking the Controversial $300bn Climate Finance Deal and More
The COP29 UN climate change conference in Baku concluded with a mix of unsettled grievances and ruffled feathers. The outcomes of the summit were met with controversy and criticism for not adequately addressing the urgency of the climate crisis.
One of the main points of contention was the new climate finance goal, known as the New Collective Quantified Goal (NCQG), which aimed to have wealthy governments channel at least $300 billion a year by 2035 to developing countries. This goal replaced the previous $100 billion annual target set in 2009 for the 2020-2025 period. Developing countries pushed for higher amounts, ranging from $440 billion to $900 billion, but negotiations were marred by a lack of clarity from developed countries.
After much back and forth, the final offer of $300 billion a year was put on the table, leading to protests from Least Developed Countries (LDCs) and Small Island Developing States (SIDS). The deal was eventually gavelled through, with developed countries pledging to lead in providing the funds from a variety of sources, including public and private finance.
In addition to the finance goal, discussions on cutting greenhouse gas emissions and the Mitigation Work Programme (MWP) faced challenges. Countries failed to reach consensus on advancing the UAE Dialogue, with Saudi Arabia blocking references to fossil fuels in the text. The MWP also saw a weak outcome, removing mentions of fossil fuels and key pledges from COP28.
The just transition work programme (JTWP) also hit a roadblock, with disagreements over human and labor rights, finance, and free trade measures. The lack of agreement led to talks being pushed to June 2025, with concerns raised by international trade unions.
On the global goal on adaptation (GGA), progress was slow due to a lack of consensus on finance and indicators to measure progress. The Baku Adaptation Road Map was agreed upon to move the goal forward, with talks set to continue in 2025.
The gender negotiations saw the renewal of the Lima Work Programme (LWP) for another 10 years, with a new gender action plan to be drawn up in 2025. Finally, a breakthrough was made on setting up a new global carbon market under the Paris Agreement’s Article 6, with rules approved for bilateral emissions trading and an international carbon market.
Overall, the outcomes of COP29 were met with mixed reactions, with many issues left unresolved and requiring further work leading up to COP30 in Brazil. The urgency of the climate crisis demands more ambitious and concrete actions from all countries involved.