On November 7, 2024, the upcoming UN climate summit, COP29, scheduled for November 11-22 in Baku, Azerbaijan, is set to focus on crucial climate finance discussions. Dubbed the 'climate finance COP', the summit aims to establish a new annual financing target for developing nations to address climate-related challenges, as the current $100 billion pledge expires at the end of this year.
The re-election of former U.S. President Donald Trump, known for his climate skepticism, may complicate negotiations. Delegates will discuss the New Collective Quantified Goal (NCQG), which is expected to replace the existing financing target. Wealthy nations are debating the structure of this funding, emphasizing that it cannot rely solely on their budgets, and are considering reforms to the global lending system to attract private investment.
Another significant topic will be the transition from fossil fuels. Despite last year's agreement at COP28 to move away from fossil fuels, global usage continues to rise, with new oil and gas projects being approved in several countries. Negotiators anticipate that COP29 may not yield concrete timelines for phasing out fossil fuels.
Additionally, discussions will focus on establishing rules for carbon credit trading, aimed at ensuring transparency and integrity in emissions offset projects. Key decisions regarding the oversight of the Paris Agreement Crediting Mechanism (PACM) are still pending.
Azerbaijan is encouraging countries to submit their Biennial Transparency Reports (BTRs) during the summit, which would detail their climate action progress. However, many nations are still falling short of their emission reduction pledges.
Lastly, the summit will address the ongoing need for financial support for climate adaptation and the Loss and Damage Fund established at COP27. Approximately $660 million has been mobilized to assist vulnerable countries impacted by climate disasters, but calls for increased contributions from wealthier nations are expected.