The COP29 climate change summit, hosted in Baku, has concluded with the announcement of a last-minute deal to commit funds to safeguard the planet.
The 2024 UN climate conference, often referred to as the “finance COP,” highlighted the difficulties in reaching a global consensus on climate action. The conference was close to closing on an impasse on Saturday when delegates from AOSIS (Alliance of Small Island States) and LDCs (Least Developed Countries) walked out of talks on the grounds their concerns were not being heard.
Nonetheless, failure in Baku was “not an option,” said UN Secretary-General Antonio Guterres. After long-lasting negotiations, the participant countries have supported the establishment of the Baku Finance Goal (BFG), a new commitment to channel $1.3 trillion of climate finance to the developing world each year. The target replaces the previous climate finance goal of $100 billion, which expires in 2025.
The deal also includes a commitment from developed countries to mobilise at least $300 billion per year for developing countries by 2035. This represents a $50 billion increase on the previous draft text.
Guterres said that while an agreement at COP29 was absolutely essential to keep the 1.5-degree limit alive, adding he “had hoped for a more ambitious outcome – on both finance and mitigation – to meet the great challenge we face.” Meanwhile, UN Climate Change Executive Secretary Simon Stiell described the new finance goal as “an insurance policy for humanity.”
In addition to the financing agreement, the countries also agreed on the rules for a UN-backed global carbon market. This market is expected to facilitate the trading of carbon credits, incentivizing countries to reduce emissions and invest in climate-friendly projects.
