Despite global geopolitical tensions and Donald Trump’s historic re-election, the United Nations Climate Talks at COP29 concluded with a significant deal, marking a hard-fought victory for multilateral climate action.
The agreement came during a year that saw record-breaking temperatures, mounting extreme weather events, and growing divides between developed and developing nations. Despite challenges, including efforts by fossil fuel-driven economies like Saudi Arabia to undermine the process, a landmark decision was reached to realign global financial systems to address the climate crisis.
The 29th United Nations Climate Change Conference (COP29) marked significant advancements in global climate action, addressing critical issues of finance, adaptation, and carbon markets.
For the first time, major southern economies joined wealthy nations in committing to a new financial framework. This historic move includes a $300 billion annual down payment by 2035, paving the way towards a $1.3 trillion climate finance goal. The funds are intended to support vulnerable nations in addressing climate impacts.
Adaptation funding saw a threefold increase, with a roadmap established to assess progress and close gaps by 2026 and 2027. Despite this progress, concerns persist regarding the balance between grants and loans and the need for specific commitments towards loss and damage financing.
After years of stalemate, negotiators achieved an agreement on government-to-government carbon markets. However, experts caution that the newly adopted rules may need to be more permissive, potentially undermining their effectiveness in reducing emissions.
While COP29 demonstrated progress on several fronts, it highlighted lingering challenges as nations strive to balance ambition with implementation.
Sharp divides marked the negotiations. Developed nations, including the United States and Japan, were criticised for prioritising shifting responsibility to other economies. Saudi Arabia stalled progress on fossil fuel phaseout discussions, which are now moving to COP30 in Belém, Brazil. Meanwhile, fossil fuel lobbyists played an outsised role, with nearly 1,800 representatives present.
Despite these obstacles, developing nations, supported by partners in the global north, played a pivotal role in ensuring progress. Vulnerable countries, including small island states, managed to secure critical funding commitments, though many argue it remains insufficient given the escalating climate crisis.
Linda Kalcher, Executive Director of Strategic Perspectives, praised the financial reforms, calling them a “step change” for climate funding, but emphasised the importance of fossil fuel phaseout in upcoming national plans. Similarly, Laurence Tubiana, CEO of the European Climate Foundation, highlighted the necessity of multilateralism despite the agreement falling short of the moment’s urgency.
Tina Stege, Climate Envoy for the Marshall Islands, poignantly reminded us of the human cost of inaction: “Countries seem to have forgotten why we are here—it is to save lives. Despite the barriers, we’ve secured a start, but much more is needed.”
Brazilian President Lula da Silva is poised to host COP30 as the “Turnaround COP,” tasked with addressing unresolved mitigation plans and further advancing climate finance mechanisms. With rising emissions and extreme weather events claiming over half a million lives in two decades, the stakes for Brazil are higher than ever.
The path to COP30 will be critical. As Simon Stiell, Executive Secretary of the UNFCCC noted: “This deal is an insurance policy for humanity, but it only works if the premiums are paid in full and on time. The road to Belém will demand stronger commitments from all.”
While imperfect, COP29 reaffirmed the global commitment to tackling the climate crisis amidst geopolitical upheaval. The focus now shifts to delivering on financial pledges and aligning national climate plans with the Paris Agreement’s 1.5°C goal.
The decisions in Baku signal both hope and urgency. The world is watching as leaders prepare for the next chapter in Brazil.
