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Key Takeaways from COP29

An agreement has been reached, which is good news, but ambition on decarbonization remains lacking, and financing commitments fall short of expectations. Here’s a recap of COP29.
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Large absences and tough negotiations characterized the United Nations Climate Change Conference (COP29), held in Baku, Azerbaijan, with nearly 200 countries in attendance. Dubbed the “Finance Summit,” the spotlight was on the new climate finance target—intended to be ambitious enough to help developing countries cut emissions and adapt to the climate crisis.

However, as participants pack their bags, the outcomes appear significant yet fall short of what was hoped for. Until the final day, wealthier nations resisted committing to a concrete figure. The final agreement, adopted after an additional 30 hours of negotiations, set a target of $300 billion per year until 2035—far below the $1.3 trillion demanded by countries most affected by climate change.

A new target, a wave of criticism

The climate summit revolved around the New Collective Quantified Goal on Climate Finance (NCQG), intended to replace the $100 billion per year pledge made in 2009 with a more ambitious figure. Yet, until the penultimate day of COP29, the draft agreement conspicuously lacked any specific numbers.

In a bid to salvage the negotiations, António Guterres, the UN Secretary-General, issued an urgent appeal in the final hours: “Failure is not an option,” he urged, emphasizing that climate finance is not “charity” but “an investment against climate chaos.”

By the last official day of COP29, a second draft proposed that Northern countries contribute $250 billion annually to the Global South. This fell far short of the demands from developing nations, which called for a minimum of $1.3 trillion per year.

Ultimately, after 30 additional hours of negotiations, the agreement settled on a new target of $300 billion annually—tripling the previous goal. While the text does call for scaling this amount up to $1.3 trillion annually by 2035, the lack of a clear roadmap for achieving this target has left lingering uncertainty.

Moreover, the decision to allow funding to come from “a wide variety of public, private, bilateral, multilateral, and alternative sources” undermines the principle of developed nations bearing primary responsibility. This sparked sharp criticism from Global South nations, which described the agreement as “insufficient” and “an insult.”

Bolivian negotiator Diego Pacheco encapsulated the frustration: “We’ve gone from an era of leaving no one behind to an era of every man for himself. Paying for climate justice is a right of the Global South.”


Carbon markets: progress amid doubts

Carbon markets were another focal point at COP29. After nearly a decade of talks, negotiators in Baku approved rules for a UN-regulated carbon market mechanism to begin operation.

This mechanism has been anticipated since the 2015 Paris Agreement, whose Article 6 called for a framework distinct from the voluntary carbon market, which is run by private organizations.

The new market will adhere to the scientific standards of the Intergovernmental Panel on Climate Change (IPCC). Additionally, participating nations must report to the United Nations Framework Convention on Climate Change (UNFCCC) on how they calculate traded emissions and ensure projects respect human, labor, and community rights.


What about fossil fuels?

The historic COP28 agreement that marked the “beginning of the end” for fossil fuels saw no significant progress in Baku. In fact, according to an analysis by the Kick Big Polluters Out (KBPO) coalition, more than 1,700 fossil fuel lobbyists attended the negotiations—a record figure underscoring the industry’s influence.

As a result, one of the adopted texts reaffirms “the need for deep, rapid, and sustained reductions in greenhouse gas emissions consistent with 1.5°C pathways.” Yet, it stops short of explicitly calling for an end to fossil fuels.

Instead, it highlights that “transition fuels can play a role in facilitating the energy transition and ensuring energy security,” a clear nod to fossil natural gas. This stance has raised concerns about its potential to delay the adoption of renewable energy.

The next climate summit will take place in November 2025 in Belém, Brazil. However, with such contested commitments, the outlook for developing nations and decarbonization goals remains fraught as the climate crisis waits for no one.

 

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