Sign in
Here’s what to expect in Baku: With only 33 days left until COP29 kicks off in Baku, we take a look at what has taken place since COP28 and we can expect to go down at the upcoming summit. Did you miss our COP28 refresher? Click here to read.
Here’s what is happening ahead of COP29 next month.
ON THE AGENDA-
Past and future hosts join forces to raise emission pledges: The UAE, Azerbaijan, and Brazil — the hosts of COP28, COP29, and COP30 — launched an initiative to drive countries to make more ambitious climate pledges in February. Dubbed the COP Presidencies Troika, the trio will work on a ‘Roadmap to Mission 1.5°C’, a plan to significantly increase the goals and implementation of the nationally determined contributions (NDCs) of all countries under the Paris Agreement. It will also focus on driving political action and directing resources towards climate finance, especially for developing countries. The group called on countries to submit their new round of national climate plans — with a submission deadline set for 2025. To encourage other nations to follow suit, Troika member UAE plans to submit their NDC ahead of COP29 next month.
COP29 host is also pushing for global energy storage expansion by 2030, planning to pitch a Global Green Energy Storage Pledge to over 190 countries, aiming to increase global energy storage capacity sixfold by 2030. The initiative aligns with the G7’s agreement to reach a target of 1.5 TW of energy storage capacity by 2030, which the group signed in April (pdf). Countries around the world would need to boost their energy storage capacities by 158 GW annually through 2030 in order to reach the proposed target, Bloomberg writes.
Phasing out language may be back in action. The recently adopted UN Pact for the Future has brought back to the stage the fossil fuel phase-out debate at COP29 in November, confirming the need to transition away from fossil fuels in energy systems in order to achieve net zero emissions by 2050 and keep global temperature rise to 1.5 °C above pre-industrial levels.
Implementing the Global Stocktake outcomes: The conference will tackle parties’ contribution to global efforts by submitting 1.5-aligned Nationally Determined Contributions (NDCs) and accelerating action on renewable energy, energy efficiency, non-carbon dioxide emissions, and the phase-down of unabated coal power. It will also include discussions on National Adaptation Plans, Biennial Transparency Reports (BTRs) to track progress, and collaborative action between global bodies, including the G7 and G20.
ON THE FINANCE FRONT-
The Finance COP: This year’s conference, dubbed the “Finance COP,” aims to align climate finance contributions with global needs, despite ongoing disputes over the New Collective Quantified Goal (NCQG), according to the World Economic Forum. The private sector’s role is crucial, as its involvement is necessary to ensure effective climate finance schemes.
#1- A recent UN report will set the stage for tough COP29 talks on financing needs: Developing countries need nearly USD 500 bn in financing annually to reach climate goals, with as much as USD 6.9 tn needed by 2030. The report by the UN’s Standing Committee on Finance criticized rich nations for missing their 2020 USD 100 bn per year goal, which was met two years late. Other nations pressure for higher funding than the UN estimates, with India calling for up to USD 1 tn in public finance alone, which EU countries believe is not feasible.
Opinions are split across different regions: Arab nations are supporting a proposal that calls for developed countries to provide USD 441 bn in grants annually, aiming for a total of USD 1.1 tn from all sources, including private finance. Another proposal, favored by the EU, sets a broader funding target of over USD 1 tn annually that leaves room for funding sources to come from domestic investments and private funding.
#2- Azerbaijan launched the Climate Finance Action Fund (CFAF) aimed at raising USD 1 bn to support climate action in developing countries, according to a statement published on Friday. The fund, to be capitalized by contributions from fossil fuel-producing nations and companies, aims to mobilize the private sector and de-risk investments. It will also provide concessional and grant-based support to address natural disasters and offer guarantees for renewable energy producers. The fund will focus on various sectors, including food and agriculture, and will reinvest profits from projects back into the fund. Half of the capital will support clean energy tech and energy efficiency projects in developing countries, while the remaining funds will help member countries meet their Nationally Determined Contributions to keep the 1.5°C temperature target within reach. The CFAF is part of a broader COP29 action agenda, which includes 14 initiatives working on climate action.
#3- More on the Loss and Damage Fund: The Loss and Damage Fund, still in its formative stages, requires significant attention. The fund needs to appoint an executive director and secure more substantial financial commitments to address global loss and damage needs. The involvement of the private sector and innovative funding mechanisms are essential to maximize the fund’s impact. Additionally, adaptation strategies must be prioritized, with a focus on developing and implementing National Adaptation Plans (NAPs) and closing the adaptation finance gap.
MORE AGREEMENTS EXPECTED-
The UAE and Azerbaijan signed multiple agreements for cooperation in sustainable development across the renewable energy and environmental sectors ahead of COP29 last January. UAE’s renewables giant Masdar broke ground in June on three renewable energy projects with a total capacity of 1 GW in Azerbaijan as part of the company’s intended 10 GW pipeline for the country. It also launched the operations of its 230MW Garadagh Solar Park in Azerbaijan — the largest in the region and the first independent solar project to receive foreign investment — last year.
