$300 billion per year approved for climate finance

On November 23, the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) concluded in Baku. Under the leadership of Azerbaijan's Minister of Ecology and Natural Resources, Mukhtar Babayev, the two-week conference achieved significant breakthroughs on key climate issues, cementing the event as a turning point in global climate diplomacy.

In his closing remarks, Babayev underscored the determination of all parties to achieve meaningful results. "No one wants to leave Baku without achieving a good outcome on our main goal," he stated, urging delegates to work towards overcoming remaining disagreements. His call for unity emphasized the urgency of the climate crisis, as global attention remained firmly fixed on COP29.

Brazil's Minister of Environment, Marina Silva, reinforced this sentiment by setting a high bar for COP30, which will take place in Brazil. She stressed the need for solidarity and urgent action, stating, "Given the crisis we face, society demands that we move forward with only responsible steps."

Major breakthroughs at COP29

The session achieved a landmark agreement on Article 6 of the Paris Agreement, resolving a decade-long deadlock over the framework for global carbon markets. The new provisions establish transparent and reliable mechanisms for countries to collaborate on emissions reductions, paving the way for annual savings of $300 billion on national climate action plans (NDCs), up from the previously anticipated $250 billion.

This development is expected to catalyze a wave of investments in renewable energy projects, including wind farms and reforestation initiatives, particularly in developing nations. Babayev highlighted the importance of reinvesting these savings to support climate ambitions, calling the agreement "a solution to one of the most challenging tasks in climate diplomacy."

Another historic milestone was the operationalization of the Loss and Damage Fund, which will provide financial assistance to countries most vulnerable to climate change impacts. Initially agreed upon at COP27 and officially launched at COP28, the fund gained new momentum under Azerbaijan’s presidency. Agreements with the World Bank and other stakeholders ensure that the fund will begin financing projects by 2025, with $730 million already pledged.

Azerbaijan’s leadership prioritized the needs of small island states and least developed countries, aligning with President Ilham Aliyev’s commitment to addressing climate-induced challenges. The operational structure of the fund, strengthened in Baku, represents a significant achievement in climate equity.

Innovative Initiatives and Financial Commitments

COP29 introduced the Baku Global Climate Transparency Platform, an initiative aimed at enhancing accountability and inclusivity in climate action. The platform will assist developing countries in preparing biennial transparency reports, ensuring compliance with the Paris Agreement’s reporting requirements.

The conference also set a new collective climate finance goal, increasing annual commitments from developed to developing countries to $300 billion by 2035. This ambitious target expands the funding base by including private and multilateral sources while encouraging voluntary contributions from developing countries.

Additional agreements included the adoption of new global adaptation goals, the Sharm El-Sheikh mitigation ambitions, and a comprehensive framework on gender and climate change, highlighting the inclusivity and breadth of COP29 outcomes.

Global praise and momentum for COP30

Simon Stiell, Executive Secretary of the UNFCCC, praised the progress made, particularly the resolution of carbon market negotiations. "The agreement to triple climate finance is crucial to supporting those most affected by climate change," he noted, commending Azerbaijan’s role in facilitating these breakthroughs.

COP29 President Mukhtar Babayev expressed gratitude to President Ilham Aliyev, UN leadership, and Azerbaijani institutions for their unwavering support in organizing the event.

As delegates departed Baku, the decisions made at COP29 signaled renewed commitment to addressing the climate crisis through innovation, collaboration, and financial ambition. With COP30 in Brazil on the horizon, the momentum built in Azerbaijan offers hope for a more unified and effective global climate strategy.