COP29, the upcoming climate conference under the UN Framework Convention on Climate Change (UNFCCC), will bring together world leaders, policymakers, and environmental experts in Baku, Azerbaijan.
The city’s historical ties to the fossil fuel industry contrast with the event’s mission of addressing climate finance for sustainability, adaptation, and mitigation.
The New Collective Quantified Goal (NCQG)
One of COP29’s central issues will be the NCQG, a comprehensive climate finance goal set forth by the 2015 Paris Agreement.
The goal aims to allocate significant funds from developed nations to support lower-income countries in reducing greenhouse emissions and adapting to climate impacts.
Studies indicate that developing nations need an annual $2.4 trillion in climate finance by 2030, with approximately $1 trillion required from international sources to achieve impactful results.
Developing countries call for an NCQG target of $1.4 trillion annually by 2035, but developed nations argue that their taxpayers cannot bear the full responsibility.
Expanding Contributors and Climate Financing Sources
Since the UNFCCC was first ratified in 1992, the global economic landscape has transformed, with countries like China and India rising as major economies and significant emitters.
Loss and damage support grows as vulnerable nations seek aid for climate disaster recovery.Consequently, developed nations, including the U.S. and EU members, are urging broader contributions to the NCQG from wealthier developing nations and economic powerhouses, such as the UAE and Saudi Arabia.
Innovative finance methods are also under review, such as wealth taxes, levies on high-carbon activities, and the reallocation of subsidies for harmful agricultural and industrial practices.
The $100 Billion Commitment and Climate Financing Gaps
A climate financing milestone from the Copenhagen COP in 2009 set an annual $100 billion goal for assistance from developed countries to those more vulnerable to climate change.
This target was only met after years of delay, sowing mistrust.
Calls for innovative finance spotlight taxes on fossil fuels, frequent flyers, and billionaires.Today, there is a call for more equitable financing allocation across adaptation, resilience, and mitigation efforts.
Under the NCQG, funds are expected to address these financing disparities, especially in climate-vulnerable regions such as Africa.
Addressing Loss and Damage
The topic of “loss and damage” financing refers to assisting nations most affected by severe climate events, like hurricanes and droughts. These regions often lack resources for recovery and infrastructure resilience.
The new loss and damage fund, created under the World Bank, will address these needs promptly through an autonomous system.
However, discussions continue over the administrative structure and funds allocation.
Troika and COP30 Preparations
COP29 marks the debut of the “troika,” an organizational alliance comprising Azerbaijan, the UAE (COP28 host), and Brazil (COP30 host).
The COP29 Troika fosters continuity, uniting UAE, Azerbaijan, and Brazil’s climate agendas.This setup aims to bring continuity to the climate summits.
Brazil is already emphasizing that COP30 must prioritize actionable emissions reductions, hoping that COP29 will create momentum for stronger outcomes at the 2025 gathering.
COP29 will thus be pivotal in shaping climate finance frameworks and inspiring collective action for a sustainable future.
By pushing for an inclusive NCQG, advancing innovative funding sources, and bridging international support, COP29 sets the stage for long-term climate resilience, especially for vulnerable countries.