Developments and Challenges at COP 29
Progress in Carbon Markets and Climate Finance, but geopolitics looms large
Time is running out for the negotiators in Azerbaijan at Cop29. The last two years, 2023 and 2024, were the warmest in records stretching back to the mid-19th century and will be close to 1.5°C above the temperature of the early industrial era. It took a century for the globe to warm the first 0.3°C, but the world has warmed by 1°C in just the last 60 years. Are we making progress? Below we highlight the key developments, challenges and controversies coming out of Cop29.
Key Developments
- Climate Finance Goals: A central focus of COP29 is setting a new collective quantified goal on climate finance to support developing countries in mitigating and adapting to climate change. Discussions are ongoing, but leaders at the Rio G20 summit have sent a clear message to their negotiators that leaving Baku without a successful new finance goal is not an option. Billions of people cannot afford their governments to leave COP29 without having a strong outcome on finance and reorientation of the financial markets towards sustainable development is greatly needed.
- International Carbon Market Standards: On November 12, negotiators ratified a framework under Article 6.4 of the Paris Agreement, establishing standards for trading UN-backed carbon credits between countries. This decision aims to unlock substantial climate finance and facilitate the implementation of national climate plans, particularly benefiting developing nations. When operational, these carbon markets will help countries implement their climate plans faster and cheaper, driving down emissions.
Challenges and Controversies:
- Fossil Fuel Influence: There has been notable criticism regarding the significant presence of fossil fuel lobbyists at COP29, with reports indicating that at least 1,770 attendees are linked to the industry. This has raised concerns about the influence of fossil fuel interests on the conference's outcomes and the overall direction of climate policy. Former U.S. Vice President Al Gore, who on Friday presented new data on carbon pollution sites, said “it’s unfortunate that the fossil fuel industry and the petrostates have seized control of the COP process to an unhealthy degree.”
- Geopolitical Tensions: The conference has been influenced by global political dynamics, including the recent U.S. presidential election and its potential impact on international climate commitments. These factors have added complexity to the negotiations, affecting the pace and direction of discussions. In the opening hours of the conference, John Podesta, President Joe Biden’s climate envoy, offered a blunt assessment that felt almost like an apology. “It’s clear that the next administration will try to take a U-turn and erase much of this progress,” he said. “Of course, I'm keenly aware of the disappointment that the United States has at times caused.” In comparison the event opened with a description of fossil fuels as “a gift from God” from Azerbaijan's president.
New Zealand’s Position
New Zealand's Climate Change Minister, Simon Watts attended the summit and highlighted New Zealand's commitments to its climate targets and doing its part to reduce the impacts of climate change. He shared New Zealand's commitment to a 20 million dollar contribution to the Pacific Resilience Facility, a Pacific-owned, Pacific-led solution to building resilience.
Furthermore he announced a commitment to a further 10 million dollars to the global fund for Responding to Loss and Damage. The countries Emission Trading Scheme was highlighted along with Innovation in its agricultural sector.
New Zealand is currently working on its second emissions reductions plan which outlines the actions that they intend to take to reduce emissions. The Government is also required to set its second international climate change target under the Paris Agreement (known as a Nationally Determined Contribution or NDC) by 10 February 2025. This will take its emissions planning up to 2035 and is currently open to consultation.
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