COP29: Global Negotiators to Set New Climate Finance Goals in Baku

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Climate Change,COP29,Climate Finance

The 2023 UN climate conference (COP29) will take place in Baku, Azerbaijan, from November 11th to 22nd. Negotiators from nearly 200 countries will focus on implementing the Paris Agreement to curb global warming, strengthen climate resilience, and provide support to developing nations. A key objective is to establish a new climate finance goal to address the escalating financial needs of vulnerable and developing countries in their fight against climate change.

SINGAPORE – The annual UN climate conference will take place in Baku, Azerbaijan, from Nov 11 to Nov 22.

The UN evaluated that currently developing countries need around US$500 billion of climate finance annually. Estimates from other groups such as the World Resources Institute and African environment ministers go up to more than US$1 trillion a year. These Global South countries also have limited financial resources to switch from fossil fuels to renewables to decarbonise.

Singapore has estimated that an annual funding gap of at least US$300 billion is needed for climate finance in Asia. Under Article 6.2, some countries have argued for the right to revoke carbon credits once they have been issued, especially if carbon projects violate indigenous people’s land rights. Others are concerned this would lead to the double counting of carbon offsets – if carbon project-hosting countries were to revoke the carbon credits they sold and count them towards their own carbon reduction goals. Leeway to revoke credits can also affect investors’ confidence in a project.

As for Article 6.4, various countries had concerns about the wording of the draft text related to the global carbon market. One issue was with the definition of carbon dioxide removals. Having a global carbon market and harmonised standards to refer to could make it easier to shape carbon trading pacts. This would reduce confusion and uncertainties with existing carbon market regulations.Mitigation refers to one of two key prongs of climate action, such as bringing down the amount of planet-warming emissions. The other is adaptation.

Climate scientists have said that warming must be limited to 1.5 deg C to avoid catastrophic climate change, which is already ravaging the planet. If countries set more ambitious climate targets and deliver on them, it could help protect many communities from harsher climate impacts. The region’s manufacturing sector would also receive a boost, with greater demand for solar panels, batteries and cables.

This goal aims to strengthen resilience to climate change and, at COP28, a set of adaptation targets was agreed upon for countries to achieve by 2030. What counts as adaptation finance is also not clearly defined, and estimates can differ based on organisations. Under the bucket of climate finance, most funds have flown to mitigation.

In April, the Thai authorities said at least 30 people died from heatstroke in the first few months of 2024. “At the same time, adaptation planning and implementation appear to be plateauing. This failure to adapt has massive implications for loss and damage, particularly for the most vulnerable.”

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