The 29th UN Climate Conference (COP29) in Baku, Azerbaijan, has achieved what many thought impossible—a transformative breakthrough in global climate finance. Introducing the Baku Finance Goal (BFG), a monumental pledge to channel $1.3 trillion annually to developing countries by 2035, COP29 has redefined ambition in tackling climate change.
What is the Baku Finance Goal?
At its core, the BFG sets a new standard for climate finance:
- $300 billion annually by 2035, tripling the previous $100 billion goal.
- Emphasis on supporting the most vulnerable—small island states and least developed nations.
- Transparency and accessibility built into the framework, ensuring funds reach those who need them most.
- Mexico announced their commitment to net-zero emissions by 2050, meaning all G20 members have committed to a net-zero target.
- On Finance, Investment, and Trade Day, climate finance pledges reached $7.3 billion, led by the Asian Development Bank ($3.5 billion), Azerbaijan’s banking sector ($1.2 billion), Sweden ($760 million), and Canada ($1.5 billion from its government and $290 million from philanthropies) for initiatives addressing melting glaciers, green taxonomies, and climate action.
- The UK government has pledged over $299 million to tackle deforestation, including money to support the development of high-integrity forest carbon markets, for blended finance for sustainable forest enterprises, and for the UNFCCC to help countries protect forests.
COP29 President Mukhtar Babayev called it “the best possible deal,” noting the intense diplomacy required to unite nations during a time of geopolitical division. “The Baku Breakthrough will turn billions into trillions over the next decade,” he declared.
Game-Changers at COP29: Beyond Finance
1. Article 6 Carbon Markets – A Decade in the Making
COP29 ended the long-standing stalemate over Article 6, unlocking the potential for high-integrity global carbon markets.
- Parties advanced efforts to operationalize Article 6, enabling resource flow to developing nations and lowering costs for climate plans. Key milestones included consensus on Article 6.4 for transparent carbon markets and finalizing Article 6.8 to foster global cooperation through non-market approaches.
- These markets could funnel $1 trillion annually by 2050 into developing economies.
- Nations agreed on transparent standards, reducing costs of climate plans by an estimated $250 billion annually.
2. The Fund for Loss and Damage
In a landmark decision, COP29 operationalized the long-awaited Fund for Loss and Damage:
- Set to distribute funds by 2025, addressing climate impacts in small island states, African nations, and least-developed countries.
- Garnered pledges exceeding $730 million, led by Australia and Sweden.
3. A Packed Action Agenda
COP29’s Action Agenda showcased innovative initiatives, including:
- BICFIT Dialogue: Mobilizing global finance, investment, and trade for climate solutions.
- Reducing Methane from Organic Waste Declaration: Targeting the world’s largest methane emitters with sectoral goals.
- Green Digital Action: Over 75 nations and 1,100 tech companies pledged to leverage digital tools for emissions reduction.
- Tourism and Urban Climate Action: Setting new standards for sustainable cities and tourism practices.
Baku’s Legacy: A Vision for 1.5°C
The achievements in Baku have laid the foundation for a pathway to limiting global warming to 1.5°C. From energy pledges to ensuring the participation of vulnerable communities, the outcomes reflect a unified call for urgent, inclusive action.
COP29 has done more than set goals; it has redefined global climate governance by:
- Redirecting trillions of dollars in investments toward developing countries.
- Elevating the voices of small island developing states and indigenous communities.
- Cementing the role of cooperation, with 132 countries endorsing the COP Truce Appeal for peace-driven climate action.
Why Baku Stands Out
Hosting a UN Climate Summit is no small feat, but Azerbaijan rose to the challenge, earning global recognition for its diplomacy and hospitality. Parties at COP29 unanimously expressed gratitude to the government and people of Azerbaijan for their pivotal role in shaping the global climate finance architecture.
The Road Ahead
The Baku Finance Goal marks the beginning of a new era. It calls on governments, private sector players, and civil society to rally behind ambitious climate action. While the challenges ahead are significant, so too are the opportunities for transformative change.
The Baku Breakthrough is a beacon of hope in a fragmented world. As President Babayev aptly said:
“The years ahead will not be easy. But together, with courage and determination, we will weather the coming storms.”
https://cop29.az/en/media-hub/news/breakthrough-in-baku-delivers-13tn-baku-finance-goal
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