Leaders and diplomats from across the world are in Baku, Azerbaijan for the 29th UN Framework Convention on Climate Change (#COP29) from 11 to 22 Nov 2024. They are likely to discuss how to increase finance for climate crisis adaptation & mitigation. A global agreement on carbon markets will be high on the agenda as countries try to find ways of generating the trillions they need to decarbonise in order to limit global warming.
2024 is on track to be the hottest year on record & the first year when temperature increase breached the 1.5C above pre-industrial level prescribed limit. The election of Donald Trump as the US President-elect has raised uncertainty about the new administration’s commitment to climate diplomacy. Trump during his first presidency had withdrawn from the Paris Pact.
According to the conference’s organising committee, one of the key initiatives on the COP29 agenda is the creation of a Climate Finance Action Fund. This fund is expected to play an important role in addressing the existing gaps in climate finance. Negotiators must increase a $100 billion-a-year target to help developing nations prepare for worsening climate impacts & wean their economies off fossil fuels.
Climate finance is a contentious issue – how much will be on offer, who will pay & who can access the funds are some of the major points of contention. Developing countries see climate finance as critical to their efforts to tackle climate change. Developed countries & the EU want developing countries & large economies such as China, UAE, Qatar and Saudi Arabia to be included in the contributor base.
Once heavily scorned because of fraud and poor outcomes, carbon trading is likely to be high on the agenda in Baku, says The Guardian. BASIC (Brazil, South Africa, India and China) nations have proposed the inclusion of a formal item on the carbon border adjustment mechanism (CBAM) – this could delay the adoption of the agenda (which is the first order of business today).
Countries have to submit their national climate plans (nationally determined contributions), with goals to be achieved in 2035 by February next year.
Over 100 Heads of state & government are likely to participate in the World Leaders’ Climate Action Summit on 12 & 13 Nov, which will provide guidance, & try to iron out the differences on major issues. However, very few leaders from G20 – countries that account for nearly 80% of global emissions, are attending. Joe Biden, Emmanuel Macron, Olaf Scholz and Narendra Modi will not be participating. Taliban delegation from Afghanistan will have an observer status.
How severe is the climate risk? Who should provide the finance for climate crisis adaptation & mitigation? Expert views would be welcome.
MitKat Advisory will continue to monitor climate risks likely to impact businesses & report on the major development at COP29.