By Dr. Gyan Pathak
The UN Climate Conference (COP29), world’s largest climate conference that brought together nearly 200 countries in Baku, Azerbaijan, wrapped up with a hard-fought agreement on climate finance but uncertainties over the climate crisis mitigation still looms large. Tripling finance to developing countries from $100 billion to $300 billion annually by 2035, aiming to scale up finance to $1.3 trillion from public and private sources, will be of little use if the issue of “who pays what is not decided” and the fund committed is not delivered in time.
The question is of paramount importance at this time, as we have witnessed on earlier target of $100 billion set in 2009, which was reached for the first time only in 2022, after a delay of 13 years. On business-as-usual scenario, the world is set to pay a too heavy a cost. The road ahead seems to be rocky, suggests the work done so far not only on funding but also on climate crisis adaptation and mitigation.
A deal to advance a UN-governed global carbon market was also signed early in the conference fund projects cutting greenhouse gas emissions. This market will facilitate the trading of carbon credits, incentivizing countries to reduce emissions and invest in climate-friendly projects. Other steps forward at COP29 included extension of a programme centred on gender and climate change, and agreement on support for the least developed countries to carry out national adaptation plans.
However, funding agreement for $300 billion yearly by 2035 reached under New Collective Quantified Goal (NCQG) frustrated the negotiators from the developing countries and the island states that are hit hardest by the climate crisis, and many among them are undergoing an existential crisis. Civil society groups and developing nations were totally disappointed with the funding pledges from wealthier countries. Several countries had also boycotted the final negotiation meeting extended after the scheduled conclusion of the summit.
Developing nations who had sought over $1 trillion in assistance called the agreement “insulting” and argued it did not give them the vital resources they required to truly address the complexities of the climate crisis.
Reacting to the outcome, UN Secretary-General António Guterres said, “I had hoped for a more ambitious outcome – on both finance and mitigation – to meet the great challenge we face. But this agreement provides a base on which to build”, but adding “It must be honoured in full and on time. Commitments must quickly become cash. All countries must come together to ensure the top-end of this new goal is met.” For many vulnerable nations, it represents a glimmer of hope—but only if commitments translate into swift action, he emphasized.
Focusing on the step forward the outcome represents, UN Climate Change Executive Secretary Simon Stiell said, “It has been a difficult journey, but we have delivered a deal. This new finance goal is an insurance policy for humanity amid worsening climate impacts hitting every country, but like any insurance policy, it only works if premiums are paid in full and on time. He further has emphasized that the world leaves Baku with a mountain of work to do. “So, this is no time for victory laps. We need to set our sights and redouble our efforts on the road to Belem” the city that will host COP30 next year.
India’s representative strongly denounced the new goal, calling it a “paltry sum” and emphasizing, “We seek a much higher ambition from the developed countries and the amount agreed does not inspire trust that we will come out of this grave problem of climate change.”
A representative from a group of small island nations said: “After this COP29 ends, we cannot just sail off into the sunset. We are literally sinking,” and the conference outcome highlighted “what a very different boat our vulnerable countries are in, compared to the developed countries”.
A major issue now will be deciding who pays what. The list of richer countries responsible, drawn up in 2002, is outdated. Countries like China and India have since developed rapidly and increased their emissions. There are also questions about how the funds will be distributed and ensuring accountability. Some developed nations argued that these rapidly developing countries should also contribute.
The next major milestone in the global climate effort will be the Fourth International Conference on Financing for Development, scheduled for June 2025 in Seville, Spain. That event would focus on mobilizing financial resources to achieve the Sustainable Development Goals, with climate finance as a key component.
Another important thing is the Nationally Determined Contributions, that are to be submitted afresh by every country by February 2025. The current NDC commitments are not enough to deal with the current climate crisis. Moreover, the commitments are not being fulfilled by many countries leaving vast gap between the efforts and what is actually required to keep the temperature at 1.5 degree Celsius by 2030 under Paris Agreement of 2015.
Several unresolved issues will be sure to spill over to COP30 to be held in Belem in Brazil in November 2025, which will be a crucial moment for countries to strengthen their national climate action plans and accelerate the transition to a low-carbon economy. The conference will place a strong emphasis on reducing greenhouse gas emissions and promoting clean energy technologies, UN Framework Convention on Climate Change (UNCCC) has said. (IPA Service)
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