COP29 Climate Summit: Progress on Finance and Carbon Trading, But Fossil Fuel Indecision Persists

Baku, Azerbaijan – The 29th United Nations Climate Change Conference (COP29) concluded in Azerbaijan after two weeks of intense negotiations. While the summit achieved notable advancements in climate finance and carbon trading, it failed to deliver decisive action on transitioning away from fossil fuels, leaving many developing nations and environmental advocates dissatisfied. 

Climate Finance: Incremental Gains, Lingering Disappointment 

A highlight of the summit was the agreement on a new global climate finance target of at least $300 billion annually by 2035, tripling the current contribution from wealthier nations. This funding aims to assist developing countries in shifting to cleaner energy, adapting to climate change, and addressing loss and damage from climate-related disasters. 

Despite the increase, the target fell short of the $400-$900 billion demanded by many vulnerable nations, who described it as insufficient to meet the rising costs of climate impacts. As 2024 nears its end as the hottest year on record, with global damages from extreme wear surpassing $2 trillion in the last decade, the urgency of greater financial support was a recurring me. 

To bridge the gap, the agreement called for scaling up broader public and private investments to $1.3 trillion annually by 2035, with detailed pathways to be discussed at COP30 in Belém, Brazil, next year. 

Carbon Markets: A Milestone Agreement 

Negotiators reached a long-sought consensus on rules for a global carbon market, finalizing the framework established by the Paris Agreement. This agreement introduces mechanisms for trading carbon credits, allowing countries to meet emissions targets through international cooperation. 

While this development was celebrated as a breakthrough, critics voiced concerns over the integrity and transparency of the market. Questions remain about whether projects generating credits will contribute to emissions reductions and how effectively they will be monitored. 

The carbon market framework is expected to encourage investment in renewable energy and preserve carbon sinks such as forests and mangroves, offering additional environmental benefits. 

A Missed Opportunity on Fossil Fuels 

Fossil fuels, a cornerstone of climate debates, remained the “elephant in the room.” Despite last year’s COP28 agreement to include language on transitioning energy systems away from fossil fuels, COP29 failed to outline concrete steps for implementation. 

Efforts to address fossil fuel dependency were hindered by major oil-producing nations, particularly Saudi Arabia, which resisted discussions on phasing out fossil fuels. Host nation Azerbaijan, one of the birthplaces of the oil industry, also refrained from setting new climate goals, with President Ilham Aliyev emphasizing the country’s reliance on oil and gas resources. 

Geopolitical Challenges and Leadership Shifts 

COP29 unfolded in a politically fraught environment. The recent re-election of climate skeptic Donald Trump in the United States raised concerns about future global climate cooperation. However, observers noted that leadership is shifting away from the U.S., with nations like China and coalitions of small island states, the European Union, and progressive Latin American countries stepping into more prominent roles. 

Despite Trump’s pledge to withdraw the U.S. from the Paris Agreement, climate action continued globally, with renewable energy leaders such as China advancing their climate goals. Subnational actors from the U.S., including progressive state representatives, also attended COP29 to demonstrate our commitment to climate initiatives. 

Looking Ahead 

As the summit ended, many attendees expressed frustration at the lack of transformative change. The absence of a comprehensive plan to transition away from fossil fuels and the failure to meet developing nations’ financial demands were significant sticking points. 

Still, COP29 represented a step forward in global climate cooperation. As UN climate chief Simon Stiell remarked, the

aris Agreement remains “humanity’s life-raft,” and nations must work collectively to accelerate progress. 

Focus now shifts to COP30 in Brazil next year, where negotiators are expected to build on the outcomes of Baku and address unresolved issues. With the growing urgency of climate impacts, the world will be watching closely.