COP29: Top 10 decisions shaping climate action
· 9 min read
This is where frustration meets opportunity.
COP29 highlighted the fragile state of global climate governance, marked by divisions over finance and accountability, with Trump’s shadow over climate action. Amid growing signs of disunity in the global fight against climate change, a lack of solidarity and accountability appears to be increasingly shaping the mindset of global leaders.
Branded as the “finance COP,” the conference was a critical juncture for global climate negotiations, underscored by several landmark decisions and resistance from delegates representing the Global South and Small Island States.
Some crucial decisions include the landmark adoption of Article 6 that established frameworks for international carbon markets and the approval of a $300 billion annual climate finance target. The latter falls short of the $1.3 trillion demanded by developing nations. Despite the clash amongst nations, key industries and sectors, previously sidelined, defined next steps to shape their climate change mitigation and adaptation strategies.
COP29 kicked off with a significant milestone for the carbon market - the adoption of the Article 6 text. This landmark decision for global carbon markets sets the foundation for how countries can collaborate to reduce emissions through carbon trading.
Article 6 establishes two key mechanisms: decentralised carbon trading under Article 6.2, allowing bilateral agreements between nations, and a UN-centralised carbon market under Article 6.4, creating a regulated platform for global carbon credit exchanges. This agreement is critical for enabling international cooperation in achieving emissions reductions, while providing flexibility for countries to meet their climate targets.
Despite its potential, the agreement has faced challenges, with unresolved issues around oversight and weakened transparency measures highlighting the complexities of balancing ambition and practicality in global climate action. For many, the impact of this development on the Voluntary Carbon Market (VCM) is unclear, as it leaves concerns about greenwashing and reputational risks unresolved. Companies have one common concern and interest - transparency, brand damage from regulatory or public scrutiny and tangible benefits. To address this, buyers’ demand for quality credits would need to be addressed directly in this era of carbon market.
Without clear standards and buyer confidence, the VCM risks stagnation despite the progress made under Article 6. The post-COP29 carbon market now faces what Isa Mulder of Carbon Market Watch calls a “dangerously loose and opaque” deal, warning it could lead to a “free-for-all” system.
This year’s climate talks concluded with a new climate finance target of $300 billion annually by 2035, triple the $100 billion goal set in 2009. Yet, it is still a fraction of the $1.3 trillion sought by developing nations. Azerbaijan, presiding over the talks, pitched the plan as a compromise to bridge the widening divide between rich and poor nations but faced backlash from delegates. Notably, the approved text commits to a $1.3 trillion annual target, relying heavily on leveraging private and alternative funding sources.
However, the target remains aspirational at best, with developing countries arguing it lacks the ambition needed to address the escalating climate crisis. In this new deal, the burden shifts from public financing to market-driven solutions, raising concerns about equitable and reliable support for vulnerable nations.
The proposal also raised eyebrows over Azerbaijan’s fossil fuel-heavy economy, undermining confidence in its commitment to driving meaningful change. Developing nations, grappling with disproportionate climate impacts, view the limited target as another instance of global climate governance falling short of its promises. As the clock ticks toward 2035, the challenge will be translating this modest milestone into actionable mechanisms that deliver real financial flows to the most vulnerable. However, hopes dim further with the lack of enforcement mechanism, leaving the $300 billion pledge without penalties if unmet by countries.
UK Prime Minister Keir Starmer seized the spotlight at COP29 with a bold pledge to slash greenhouse gas emissions by 81% by 2035, compared to 1990 levels. This new target surpasses the UK's previous commitment of 78%. Starmer's announcement aligns with recommendations from the UK’s Climate Change Committee, signalling a science-driven and ambitious approach to tackling the climate crisis.
The move underscores the UK’s intent to accelerate its transition to a low-carbon economy, setting a high bar for other nations ahead of critical 2030 milestones. Realising this ambition demands substantial investment in renewable energy, infrastructure, and industry transformation – challenging amidst the UK’s post-Brexit uncertainties. By raising the stakes, Starmer aims to position the UK as a climate frontrunner, but its success will depend on turning targets into tangible action.
Green technology and innovation received a push with the adoption of the COP29 Declaration on Green Digital Action. At COP29, over 1,000 entities – governments, companies, and organisations – pledged to integrate digital tools like AI, blockchain, and IoT into climate strategies, improving emissions tracking, energy efficiency, and the shift to renewables.
In addition, a flagship initiative under the declaration, the "Digital Green Fund," was launched, with the aim to mobilise $50 billion globally by 2030 to accelerate investments in smart grids, green tech startups, and climate-focused digital infrastructure. While ambitious, its success hinges on addressing concerns over equitable access and the digital divide, which could marginalise developing nations without targeted support.
The United States Environmental Protection Agency (EPA) has introduced a groundbreaking federal fee on methane emissions, marking a significant step in climate regulation, announced at COP29. Enabled by the Inflation Reduction Act, this first-of-its-kind policy will impose a fee of $900 per metric ton of methane starting in 2024, increasing to $1,500 by 2026.
As methane is a potent greenhouse gas with substantial contributions to global warming, this initiative aims to incentivize companies to adopt stricter emission controls and invest in cleaner technologies. The policy is expected to have wide-reaching implications, particularly for industries reliant on fossil fuels, potentially altering global market dynamics and shaping corporate strategies as businesses worldwide adapt to the increasing emphasis on climate accountability.
In week two of COP29, the UK and US solidified a groundbreaking partnership to accelerate the development of advanced nuclear technologies, aiming to drive decarbonisation in heavy industries such as aviation fuel, hydrogen production, and steelmaking. The agreement, backed by billions in R&D investments, builds on the ambitious COP28 pledge to triple global nuclear capacity by 2050. The UK is already advancing nuclear energy projects like Sizewell C and small modular reactors as part of its clean energy strategy.
Starting in March 2025, the partnership will also see both nations excluding Russia from the Generation IV International Forum to align on “shared values” and “robust nuclear safety standards.” This collaboration underscores the pivotal role of nuclear power in achieving global decarbonisation goals while strengthening international safety and cooperation frameworks.
Climate change and geopolitical conflicts are deeply intertwined, with military activities alone accounting for 5.5% of global emissions. The COP Truce Initiative, supported by 132 countries and over 1,000 institutions, was launched at COP29 to address the environmental toll of conflict, globally. Inspired by the Olympic Truce, this initiative seeks to champion non-political collaboration, reduce conflict-driven emissions, protect fragile ecosystems, and foster peace as a cornerstone of climate resilience.
This initiative will seek to address the often overlooked connection between conflicts and climate resilience by targeting conflict-driven emissions, safeguarding ecosystems and promoting peace as a cornerstone of sustainability.
Over the years, sustainable cooling has been considered a vital response to rising global temperature, with heat pumps slowly emerging as a priority for several countries in their climate strategies. However, with cooling systems currently accounting for over 10% of global greenhouse gas emissions and demand for cooling expected to triple by 2025, there is a need to meet the rising demand while minimizing environmental impact.
At COP29, the Global Cooling Pledge took center stage as nations and organisations intensified efforts to address cooling-related emissions. 71 countries and 60 non-state actors committed to a 68% reduction by 2050, underscoring sustainable cooling as a global climate priority. Thirty-seven countries incorporated cooling into their climate plans, with Brazil taking a leadership role as co-chair of the Intergovernmental Committee on Cooling to drive global collaboration on impactful solutions.
Climate change is a growing health threat, worsening diseases, air quality, and food shortages, with vulnerable populations at highest risk. The WHO estimates climate change will cause 250,000 additional deaths annually by 2030, highlighting the urgent need for action to protect global health.
To address this threat, countries at COP29 launched a groundbreaking coalition to address the growing health-climate crisis, uniting five COP presidencies—Azerbaijan, Brazil, Egypt, UAE, and the UK—with the World Health Organization (WHO). The coalition aims to establish a cohesive and sustained framework for global action, ensuring that climate-health commitments translate into meaningful, long-term outcomes.
For the first time at a COP, tourism's role in climate change took center stage with the launch of the Baku Declaration on Enhanced Climate Action in Tourism. This milestone initiative urges countries to integrate tourism into their national climate policies, reflecting the sector's dual role as both a contributor to and a victim of climate change.
Representing 3% of global GDP and employing one in ten people worldwide, tourism's vast footprint underscores the urgency of addressing its environmental impact. The declaration sets a path for reducing tourism’s carbon footprint, promoting sustainability, and aligning the sector with global climate goals, marking a critical step in leveraging tourism for a more climate-resilient future.
Amid intense controversies, these milestone decisions have provided a common ground to address growing disunity on climate action amongst world leaders, despite the Azeri presidency's struggle to balance competing national interests. Despite progress on the $300bn climate finance target and carbon markets, developing nations remain frustrated by unmet $1.3tn funding demands. Still, the summit highlighted growing momentum for climate action, even in the absence of full U.S. support.
The challenge now is turning commitments into results and developing nations facing the climate crisis with a “death sentence” finance deal. Also, all attention is now turned to the anticipated response to global leaders' calls for reform of COP systems. With a foundation for progress, closing the funding and equity gaps will require bold, responsible leadership and genuine collaboration.
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