COP29 – Agreeing on a new climate finance deal is the priority as the summit begins

12 Nov COP29 – Agreeing on a new climate finance deal is the priority as the summit begins

After another year of record high temperatures and extreme weather events, the UN Climate Chief Simon Stiell informed representatives at COP29 that delivering a new climate finance target was critical for all nations, including the most wealthy and powerful.

The focus on climate finance resonated on the opening day of the climate summit in Baku. COP29 will see countries aim to establish a new annual climate financing target, replacing the $100 billion committed in 2009, which many believe is nowhere near enough to manage the rising air and sea temperatures.

Stiell emphasised why a new climate finance deal is so important, stating that every negation would experience the impacts if at least two-thirds of nations cannot afford to drastically reduce their emissions.

Furthermore, the entire global economy would face a collapse if nations are unable to enhance their supply chains with spiralling costs associated with climate change. Stiell emphasises that global leaders must agree on a way to work out of this, and establishing a new global climate finance goal in Baku is a priority.

Industry representatives have called for major reforms to the global financial system, which many believe is critical for nations to address the impacts of climate change. Mr Stiell concluded in discussions that we cannot leave Baku with a significant outcome and challenged all representatives to stand and deliver.

The years between 2015 and 2024 represent the hottest decade on record, with a rising loss of glacial ice, rising sea levels and heating oceans. Extreme weather is causing considerable disruption to communities worldwide. UN Secretary-General Antonio Guterres stated that climate challenges are impacting health, limiting sustainable development, and the most vulnerable are being affected the most.

The main discussion points at COP29

Referred to as the Climate Finance COP, representatives from all nations are focused on establishing a new global climate finance goal. This is regarded as one of the summit’s key deliverables and will replace the current $100 billion goal.

Industry groups are exploring steps towards securing the loss and damage fund agreed upon at the previous climate summit, and considered a vital fund to address climate change impacts. It’s unclear when the fund will launch and commence payments.

All nations are due to announce new climate targets – nationally determined commitments (NDCs) by early next year, ensuring their goals meet the level of emissions reductions required for limiting global temperature rise to 1.5C.

Representatives intend to complete the necessary steps to launch Article 6 of the Paris Agreement, which enables nations to voluntarily work together to achieve emissions reduction goals outlined in their NDCs. Article 6 would enable them to exchange carbon credits produced by reducing greenhouse gas emissions, supporting other countries in reaching their climate targets.