COP29, Can We Move from Promises to Progress?
As COP29 opens in Baku, global leaders face mounting pressure to address urgent climate challenges. Amid record-breaking climate events and heightened public demand for action, this conference seeks ambitious solutions for finance, emissions, and resilience. Will COP29 mark a shift from promises to measurable progress? The world is watching.
The 29th United Nations Climate Change Conference, COP29, is set to take place in Baku, Azerbaijan, from November 11 to 22, 2024. This summit serves as a critical platform for global cooperation in tackling climate change and fulfilling the Paris Agreement’s objectives. While previous COP sessions have brought high hopes, they have often left many concerned about the planet’s future disappointed due to limited progress. This year, COP29 carries particular weight as it unfolds amid record-breaking climate events and an urgent demand for tangible action.
Since the first COP meeting in 1995, these conferences have been instrumental in shaping climate policy, with COP21 in 2015 marking a major milestone with the Paris Agreement. This landmark accord set a goal to limit global temperature rise to well below 2°C, with efforts to restrict it to 1.5°C above pre-industrial levels. However, challenges have persisted, and COP29 arrives as nations worldwide confront worsening climate impacts, calling for renewed commitment and actionable solutions.
At The ESG Institute, we understand the critical role that businesses and organizations play in advancing sustainability goals. By providing guidance, tools, and strategies tailored to ESG principles, we support entities in reducing their environmental footprint, enhancing social responsibility, and strengthening governance. As COP29 sets the stage for global climate solutions, The ESG Institute is committed to helping businesses align with these goals, empowering them to make meaningful contributions to a sustainable future.
“COP29 must be the stand-and-deliver COP, recognizing that climate finance is core business to save the global economy and billions of lives and livelihoods from rampaging climate impacts.” — Simon Stiell, Executive Secretary of UNFCCC
The stakes are high, and COP29 presents an opportunity to move from ambition to action—an essential shift in the journey toward a resilient, climate-ready world.
Key Objectives of COP29
COP29 has outlined several critical objectives to drive international climate action forward. These objectives aim to build on past efforts and establish stronger commitments toward a sustainable and resilient future.
Enhancing Climate Finance
One of the main goals of COP29 is to set a New Collective Quantified Goal (NCQG) for climate finance, which will replace the original $100 billion annual target established in 2009 and due to expire in 2025. Developing nations are pushing for a more ambitious figure, with some experts suggesting that over $1 trillion annually may be required to meet climate adaptation and mitigation needs. The NCQG is intended to address the heightened costs of climate resilience projects, especially for vulnerable nations facing escalating climate-related risks.
Proposed funding sources include innovative mechanisms, such as levies on fossil fuel production and international transportation sectors. While some developed nations acknowledge the necessity for increased funds, they also emphasize the role of private sector investment, alongside public finance, in addressing climate finance gaps. The outcome of these discussions will likely shape the availability of resources for countries most affected by climate impacts.
Strengthening Nationally Determined Contributions (NDCs)
With only a limited time remaining to meet the Paris Agreement targets, COP29 is expected to push nations toward more ambitious Nationally Determined Contributions (NDCs). These are country-specific commitments to reduce greenhouse gas emissions and contribute to the 1.5°C goal. Many countries are expected to revise their targets, aiming for emissions reductions that are both actionable and measurable.
The conference will also address the importance of accountability and transparent reporting mechanisms. This will allow nations and stakeholders to track progress and ensure that countries adhere to their climate commitments. The emphasis on transparency is crucial, as past commitments have often fallen short of achieving meaningful reductions.
Transitioning from Fossil Fuels
COP29 will focus heavily on strategies to reduce global reliance on fossil fuels and accelerate the shift to renewable energy sources. This includes pledges to triple renewable energy capacity and increase global energy storage capacity sixfold by 2030, a goal aimed at ensuring that renewable sources can reliably meet energy demand.
Additionally, the conference will explore ways to expand energy grid infrastructure to support renewable energy integration and examine the potential of clean hydrogen as an alternative to fossil fuels. Discussions will also touch on the role of natural gas as a “bridge fuel” in the transition and consider carbon capture and storage technologies as part of a diverse strategy to reduce emissions from hard-to-decarbonize sectors.
Addressing Loss and Damage
Recognizing the disproportionate impact of climate change on vulnerable communities, COP29 aims to operationalize the Loss and Damage Fund established at COP28. This fund will provide financial assistance to countries experiencing severe climate-induced losses, such as extreme weather events and rising sea levels.
Key issues to be addressed include defining the governance structure of the fund, establishing reliable sources of financing, and creating criteria for fund disbursement. An effective Loss and Damage Fund could make a significant difference for countries that bear the brunt of climate impacts but have contributed the least to global emissions.
Promoting Just Transition and Inclusivity
A priority at COP29 is ensuring that the shift to a low-carbon economy is equitable and inclusive. This includes frameworks to protect the rights and livelihoods of workers and communities affected by the transition away from fossil fuels. Stakeholder engagement will be a central theme, with an emphasis on social dialogue that brings together governments, businesses, and civil society.
A “just transition” framework supports developing countries, which often face greater challenges in shifting to sustainable energy sources without harming their economies. It encourages international cooperation to ensure that these nations receive the resources and support necessary to participate fully in the green transition.
Anticipated Challenges and Debates
COP29 will likely face significant challenges and complex debates. Here are some of the key issues that could influence the conference’s outcomes:
1. Climate Finance Commitments
As developing countries push for a more ambitious NCQG, developed nations are voicing concerns over the feasibility of these financial commitments. Some experts estimate that over $1 trillion annually is needed, while developed countries point to private sector contributions as essential alongside public funds. Intense negotiations are expected over the sources, scale, and mechanisms of climate finance.
2. Geopolitical Dynamics
Geopolitical tensions add layers of complexity to COP29. Notably, the absence of key figures such as U.S. President Joe Biden and European Commission President Ursula von der Leyen has raised concerns about the conference’s momentum. China’s proposal to address trade measures, including carbon border taxes, underscores the intersection of climate policy with international trade and could lead to lengthy discussions.
3. Equity and Responsibility
The principle of “common but differentiated responsibilities” remains contentious. Developing countries argue that wealthy nations should bear a larger share of climate costs, given their historical contributions to emissions. Meanwhile, developed nations are calling for major emitters like China and India to increase their climate commitments, sparking a debate over each country’s responsibilities under the UN Framework Convention on Climate Change.
4. Operationalizing the Loss and Damage Fund
A critical challenge for COP29 will be establishing the governance and funding framework for the Loss and Damage Fund, ensuring it provides timely assistance to vulnerable nations without exacerbating their debt burdens. This requires careful planning to define funding criteria and sources, balancing the needs of affected countries with available resources.
5. Transitioning from Fossil Fuels
While there is consensus on the need to reduce fossil fuel use, disagreements persist over the timeline and approach. Some nations advocate for a rapid phase-out, while fossil-fuel-dependent economies push for a more gradual transition. The role of carbon capture and storage technology also divides opinions, with some viewing it as essential and others as an impediment to real progress.
Innovative Initiatives and Declarations
In addition to formal negotiations, COP29 is set to introduce various initiatives aimed at complementing international efforts and catalyzing climate action across sectors:
1. COP29 Presidency’s Action Agenda
The COP29 Presidency’s Action Agenda includes nine Declarations and Pledges, such as the COP29 Truce Appeal, which calls for reduced military emissions during the summit, and pledges to expand energy storage, create Green Energy Zones, and address methane emissions from organic waste.
2. Climate Finance Action Fund (CFAF)
Azerbaijan has launched the Climate Finance Action Fund, aiming to mobilize $1 billion to support developing nations in meeting their climate goals. Unlike traditional financing mechanisms, this fund is managed by a multinational board and invests in projects selected by shareholders, with 20% of its revenue reserved for urgent climate response.
3. Baku Initiative for Climate Finance, Investment, and Trade (BICFIT)
The BICFIT platform promotes green investment, policy development, and expertise sharing. This initiative seeks to strengthen the nexus of climate finance, investment, and trade, particularly for developing countries.
The Role of Non-State Actors
Non-state actors, including businesses, financial institutions, civil society organizations, and local governments, are instrumental to COP29’s success. These groups contribute significantly to achieving climate goals by holding stakeholders accountable, driving innovation, and ensuring inclusivity. As official government commitments have often fallen short, non-state actors are stepping up with a more urgent and transformative approach.
1. Private Sector Engagement
The private sector is increasingly recognized as a key driver of sustainable practices and climate financing. Through initiatives such as the UN Global Compact’s Forward Faster program, over 2,000 companies worldwide are being urged to set ambitious targets, aiming for science-based emissions reductions and transparent reporting by 2030. This program reflects the growing awareness within the business community that sustainability is essential not just for regulatory compliance but also for maintaining long-term resilience.
In addition, financial institutions managing assets totaling over $29 trillion are pushing for policies that enable large-scale private investment in climate solutions. The 2024 Global Investor Statement on Climate, supported by financial giants like BlackRock and Vanguard, calls on governments to phase out fossil fuel subsidies and implement carbon pricing to facilitate market-driven climate action. Such financial commitments are expected to address key funding gaps, especially for renewable energy projects in emerging economies.
2. Civil Society and Youth Movements
Civil society organizations (CSOs) and youth movements play a central role in advocating for climate justice and ensuring that COP29’s outcomes are equitable. Fridays for Future, founded by Greta Thunberg, has mobilized millions of young people globally, raising awareness of the climate crisis. The movement has evolved into a network of local organizations pushing for specific national-level reforms, such as ending subsidies for fossil fuel projects and accelerating renewable energy deployment.
Platforms like COP29’s Resilience Hub provide a space for CSOs and youth leaders to present their solutions to government representatives, fostering dialogue that emphasizes inclusivity and climate equity. These platforms are especially important for amplifying the voices of Indigenous communities, who are among the most vulnerable to climate impacts yet often lack representation in formal negotiations.
3. Local Governments and Cities
Cities and local governments are at the forefront of implementing climate solutions, directly impacting nearly 70% of global greenhouse gas emissions from urban areas. The COP29 Multisectoral Actions Pathways (MAP) Declaration focuses on making cities resilient by promoting sustainable urban planning, enhancing public transportation, and implementing green building standards. This declaration aligns with initiatives like the C40 Cities Climate Leadership Group, which connects nearly 100 of the world’s largest cities in committing to net-zero emissions by 2050.
Municipalities from New York to Nairobi are adopting climate adaptation plans that include flood-resistant infrastructure, heatwave management strategies, and community-driven sustainability programs. These local governments, working alongside international bodies like ICLEI - Local Governments for Sustainability, are pioneering climate action and demonstrating that impactful changes are often implemented most effectively at the local level.
4. Interconnected Justice and Just Transition
The concept of interconnected justice is gaining prominence at COP29, as stakeholders recognize that climate policies in one region can have far-reaching effects. The interconnected justice approach emphasizes aligning climate finance, trade policies, and international aid with principles of equity and fairness, ensuring that climate action benefits rather than burdens disadvantaged regions.
A major focus is on a “just transition,” which seeks to protect workers and communities impacted by the shift away from fossil fuels. For example, the European Green Deal’s Just Transition Mechanism allocates €40 billion to help regions heavily reliant on coal and other fossil fuels transition to renewable energy. This model aims to prevent social and economic disruptions in communities by investing in job retraining, small businesses, and sustainable infrastructure projects.
At COP29, non-state actors are championing these efforts by advocating for policies that minimize adverse impacts on vulnerable populations. This interconnected justice framework not only addresses fairness but also promotes long-term stability by ensuring that all regions can participate in and benefit from the green transition.
Expected Outcomes and Implications
As COP29 unfolds, the outcomes of its discussions and agreements will have lasting effects on climate policy and action worldwide. Here are some of the anticipated impacts:
1. New Climate Finance Goal
The establishment of a New Collective Quantified Goal (NCQG) for climate finance could redefine the support developing nations receive. By surpassing the previous $100 billion annual target, the NCQG aims to mobilize resources that reflect the true cost of combating climate impacts. A larger pool of funds, sourced through innovative mechanisms like fossil fuel levies and contributions from high-emission industries, is expected to build confidence among vulnerable nations that their climate adaptation and mitigation needs will be met.
2. Strengthened Emissions Commitments and Accountability
With more ambitious Nationally Determined Contributions (NDCs) expected, countries will be setting aggressive targets to reduce greenhouse gas emissions. The introduction of robust accountability and reporting mechanisms is anticipated to ensure that countries not only commit to their targets but demonstrate measurable progress. This enhanced transparency could serve as a check on nations, compelling them to follow through with genuine efforts, rather than relying on empty promises.
3. Transition Toward Renewable Energy
COP29’s commitments to renewable energy expansion, including pledges to triple global renewable capacity and significantly boost energy storage, indicate a more aggressive shift away from fossil fuels. The support for clean hydrogen, grid improvements, and energy storage will help stabilize renewable energy supplies, addressing one of the main challenges of a low-carbon energy grid. This transition could reshape the global energy landscape, reducing dependency on fossil fuel-dominated economies and potentially lowering the cost of renewable technology worldwide.
4. Operationalization of the Loss and Damage Fund
Effective deployment of the Loss and Damage Fund could have immediate positive impacts on the resilience of vulnerable communities. By addressing both direct and indirect climate-related losses, this fund is expected to provide relief to countries suffering from catastrophic weather events, helping them rebuild without incurring significant debt. Furthermore, it has the potential to serve as a global model for climate-responsive financing, inspiring similar mechanisms in the future.
5. Reinforcement of the Just Transition Agenda
COP29’s focus on a just transition ensures that as industries phase out fossil fuels, affected workers and communities are not left behind. With frameworks to support social equity, the outcomes of COP29 could drive a more inclusive approach to climate action, where the global shift to sustainable practices also addresses issues of employment, worker retraining, and social welfare. This could help mitigate the social impacts of decarbonization and create pathways for green employment in affected regions.
In Summary
As COP29 opens in Baku, expectations are high that it will address some of the most pressing issues in the fight against climate change. However, there is a cautious optimism among climate advocates and global stakeholders who have seen previous COPs struggle to meet ambitious promises with tangible outcomes.
This year’s conference represents an opportunity for nations to confront historical shortcomings by setting measurable, enforceable goals that reflect the urgency of the climate crisis. From ambitious climate finance targets to strengthened Nationally Determined Contributions (NDCs), a stronger commitment to renewable energy, and the operationalization of the Loss and Damage Fund, COP29 has the potential to reshape the global climate landscape.
For millions of people directly affected by climate change, the outcomes of COP29 will have profound implications. The world will be watching closely—not only to see if commitments are made, but to ensure they are followed by real actions. This is a defining moment for global leaders to bridge gaps, overcome differences, and work collectively toward a resilient and sustainable future.
At The ESG Institute, we understand that supporting businesses and organizations in becoming more sustainable is essential to achieving these ambitious goals. Our work focuses on equipping organizations with the tools, knowledge, and strategies they need to integrate environmental, social, and governance (ESG) practices into their core operations. By guiding businesses toward meaningful sustainability initiatives, we contribute to the larger global movement to mitigate climate change and promote resilience.
As we look toward a future where climate action is not just a responsibility but a necessity, COP29 could mark a pivotal shift. The commitments made—and kept—by governments, businesses, and organizations around the world will determine whether we are prepared to address the climate crisis with the seriousness it demands. The ESG Institute is proud to be part of this journey, working alongside leaders, companies, and communities to help pave the way for a sustainable and thriving future.
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