Takeaways from COP29

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  Linda Burenius

  Head of Climate, Sustainability, and Communications

New Collective Goal on Climate Finance (NCQG)

One of the most important pieces of news was that the number of rich countries contributing to climate finance, and their contributions, will increase. The goal is for global climate finance flows from rich to poor countries to grow from the current level of $100 billion a year to as much as $300 billion a year by 2035. This funding will help poor and vulnerable countries adapt to climate change, transition away from fossil fuels and protect themselves from climate-related damage. The target is just that – a target – and at a global level, without specifying what each country should contribute and without any accountability mechanisms. Every tenth of a degree of global temperature increase counts and investments are needed now, not in 2035. 

Overall climate finance target: USD 1.3 trillion per year by 2035

An additional target was set for all actors to reach a total of $1.3 trillion per year in climate finance by 2035. This extra trillion will primarily come from private financing, to help poor countries transition their economies and societies away from fossil fuels and create a buffer against the adverse effects of climate change. The goal also includes new cooperation between developing countries, known as South-to-South cooperation, as well as exploring innovative financing solutions, such as international levies on fossil fuels, aviation or shipping.

Baku to Belém: Roadmap to 1.3T

The next COP 30 climate summit will be held in Belém, Brazil, in autumn 2025. A new roadmap, ‘Baku to Belém’, aims to identify ways to mobilise even greater sums for climate action in the coming year, to be able to reach the goal of USD 1.3 trillion in climate financing, mentioned above. 

Inclusion of developing countries in financing

Prior to COP29, there had been pressure from rich countries to get a more specific commitment from countries which are currently considered developing countries in the climate negotiations. The richer countries wanted countries such as China and the Gulf States, to also contribute more to climate finance. China is already a major investor in the Global South, but these investments are not currently counted towards the global target. The new text “encourages” developing countries to participate, which the EU sees as a loss.

Global rules for emissions trading

Another important decision at COP29 was the adoption of global rules for carbon markets. This is seen by many as a step forward in creating more transparency and efficiency in global emissions trading. At the same time, there are concerns that the rules could open the door to fraud and lack of control, which could undermine the aim of reducing global greenhouse gas emissions.

Linda moderating a roundtable discussion on “Innovating the principle of risk & reward for investments in proven climate technologies to unlock capital and accelerate the green transition”, together with Mattias Frumerie, Sweden’s Climate Ambassador and Head of Delegation to UNFCCC.  Picture: Business Sweden.

Final thoughts

The decisions and agreements made at COP29 are insufficient in limiting global warming to the 1.5 degree target that was agreed in Paris almost a decade ago. Reports before this COP in fact projected current climate plans to lead to an increase of almost 3 degrees over the course of this century. It was extremely disappointing to not see a stronger ambition from countries in strengthening their climate plans when it comes to emission reductions.

Climate summits where countries come together to negotiate, will probably never result in more than a floor for global climate work. Instead, hope lies in voluntary groupings of countries, cities, and companies that choose to be at the forefront, as well as in the continued falling costs of renewable energy and batteries. The Global Challenges Foundation looks forward to working with new and old partners to continue to build and strengthen the forces of good that exist to limit global warming, biodiversity loss, and ensure a successful transition to a safe and just landing zone for people and the planet.