As the world faces an intensifying climate crisis, all eyes are on Baku, Azerbaijan, where nearly 200 nations will gather for the 29th United Nations Climate Change Conference, or COP 29, from November 11 to 22, 2024. This landmark event unites global leaders, climate experts, and policymakers to address the urgent challenges posed by climate change. With impacts like extreme weather, rising sea levels, and ecosystem disruptions becoming increasingly severe, the stakes have never been higher. More than just a conference, COP 29 represents a pivotal opportunity to shape a sustainable and resilient future through bold commitments and decisive action on climate.

What is expected from COP 29?

Reflecting on COP 28: Milestones and Challenges

COP 28 was marked by both achievements and setbacks, particularly regarding progress on Article 6 of the Paris Agreement, which outlines rules for international carbon credit transfers. While the first Global Stocktake was a major milestone, countries were unable to reach a consensus on decisions related to Articles 6.2 and 6.4.

For Article 6.2, which facilitates bilateral carbon credit agreements between countries, the lack of progress at COP 28 is less critical in the short term. Despite an absence of new guidance on reporting, registries, and authorization rules, momentum around Article 6.2 deals continued to grow. COP 28 saw numerous bilateral agreements, with more nations entering the carbon market as buyers and sellers. A notable milestone was achieved in 2024 when Switzerland and Thailand completed the first Article 6.2 transaction, underscoring that activity under this mechanism can proceed despite negotiation room uncertainties.

However, the failure to advance Article 6.4 has had a more significant impact. Without formal adoption of methodologies and activities for carbon removals, Article 6.4 remains in a holding pattern, unable to support new carbon credit projects until a framework is approved—potentially not until COP 29. This delay affects project developers, supply countries, and investors, who must wait before fully engaging with the Article 6.4 mechanism.

The outcomes from COP 28 highlight both the progress and challenges within international climate cooperation, setting the stage for COP 29 to address these unresolved issues and bring clarity to the path forward. Read more on our article 6 HERE

The Status of Article 6: Ongoing Dialogue

Although this year’s action agenda does not explicitly mention the carbon market concerning Article 6, the topic is expected to remain prominent in discussions. Updates on the work of the Article 6.4 Supervisory Body and its recent technical standards will be critical in supporting the operationalization of carbon credit transfers between countries under UN supervision. These discussions hold substantial potential to shape the future of carbon market operations.

Nationally Determined Contributions (NDCs): A Renewed Focus

The discourse on climate financing at COP 29 aligns with the imminent deadlines for countries to renew their Nationally Determined Contributions (NDCs) by 2025. Countries such as the United Arab Emirates and Brazil, the host for next year’s COP, have indicated they will unveil their new NDCs during this event. The interplay between discussions on the New Collective Quantified Goal on Climate Finance (NCQG) and NDCs is essential to ensure private financing is integrated effectively, particularly in supporting developing countries in achieving their climate goals and bridging the existing climate finance gap.

Climate Finance Takes Center Stage

COP29 finance initiatives take center stage this year, with the conference designated as the "Finance COP." The COP29 President will lead crucial discussions on mobilizing climate finance through the Climate Finance Action Fund, focusing on voluntary contributions from fossil fuel-producing countries and companies This initiative is crucial as it underscores the need for a significant investment shift toward green energy solutions.

One of the key topics on the agenda is the New Collective Quantified Goal on Climate Finance (NCQG). This goal seeks to replace the 2009 target established at COP 15, which aimed for developed countries to collectively mobilize $100 billion per year by 2020 to support climate action in developing nations. The discussions surrounding the NCQG will delve deeper than just financial figures; they will explore the balance between public and private funding sources, institutional frameworks, and the need to address finance for adaptation and loss and damage.

Looking Ahead: A Decisive Step for Climate Action

With a central focus on climate finance, COP 29 aims to secure increased financial support for vulnerable communities and establish a robust framework for future contributions. Leaders will evaluate national pledges, discuss the future of carbon markets, and consider the implications of collective actions. As COP 29 unfolds, it stands as a pivotal opportunity for nations to take decisive steps toward a more resilient, low-carbon global future.

For those interested in how to attend COP29, the COP29 official website provides comprehensive details about the conference, including important information on COP29 accommodation options coordinated through official channels in Baku. 

Fairatmos will be at COP 29!

As active COP29 participants, Fairatmos will deliver daily live updates from Baku! Stay informed about the latest developments as they unfold, with our CEO, Natalia Rialucky providing expert insights throughout the conference. Follow our LinkedIn HERE for comprehensive coverage of this crucial climate summit!