During the second week of COP29, parties attempted to reach an agreement on how to assist developing nations in adapting to and mitigating climate change. Financing specifics were needed but slow to come.
With the G20 taking place in Rio de Janeiro, Brazil, during the week, U.N. climate official Simon Stiell tried to encourage an end to the COP29 climate financing stalemate: He sent a message to the G20 heads of state, saying their role in encouraging a resolution that offers sufficient financing is “mission-critical.” In their closing G20 Leader’s Declaration, the participants recognized the need to “scale up climate finance from billions to trillions from all sources.”
The conference did end with a pledge from wealthy nations to reach $300 billion per year in support by 2035. It’s an improvement over the current target of $100 billion per year, yet it falls short of what delegates from developing nations were hoping for. The Independent High-Level Group on Climate Finance suggested that $1 trillion will be needed by 2030.
Conference highlights and progress areas
Despite negotiations that were described by many observers as discouraging, the conference did highlight some advances by participating countries.
Regulation of methane emissions: At COP28, the oil and gas sector pledged to reduce methane emissions. This year, the U.S. Environmental Protection Agency (EPA) announced the finalization of a climate regulation that will improve efficiency in the U.S. oil and gas sector and reduce methane emissions.
Lower fossil fuel subsidies: The International Energy Agency (IEA) reported that in 2023, fossil fuel consumption subsidies amounted to $620 billion, down from $1.2 trillion in 2022. Russia, Iran, China and Saudi Arabia were the top four spenders. COP29 parties pushed for further reductions.
Business, investment and philanthropy climate platform: The private sector held a CEO-level Climate Champions forum. This platform builds on the discussions at COP28 and also included ways to support the green transition of small and medium enterprises.
Transparent climate reporting: One focus of the conference was Nationally Determined Contributions (NDCs), which outline national climate targets. Updated targets are due in 2025, and Brazil, the host of next year’s COP30, was the first of three countries to hand in its NDC 3.0, followed by the U.K. and UAE.
Carbon markets: Following a decade of negotiation, nations agreed on strong standards and methodologies for a centralized carbon market. When operational, this global carbon credit trading system should help countries drive down emissions.
COP29 also provided attention-grabbing speeches. Notably, former U.S. Vice President Al Gore revealed the top five high-emissions cities: Shanghai, Tokyo, New York City, Houston and Seoul. Data came from Climate Trace, which used satellite and ground observations to quantify carbon dioxide, methane and nitrous oxide in municipalities around the world.
COP29 wrapped up late, but with a financing agreement reached. Now the parties turn their attention to the updated targets for emissions reductions that are expected from all parties by the February deadline.
