In the early hours of Sunday morning it was finally agreed that rich countries will pay developing countries $300 billion a year by 2035 to help them cope with the effects of the climate crisis.
Earlier in the climate talks, held in Azerbaijan, it had been agreed that the most vulnerable countries need $1.3 trillion a year to adapt to and combat the consequences of climate change. So the final figure has been criticised by many.
India accused the COP presidency of agreeing the “paltry sum” without hearing the country’s opposition to it. Nigeria called the figure a “joke”. And Malawi said that for the least developed countries it was “not ambitious”.
Others say that any deal is better than no deal, considering it had looked like negotiations could collapse after developing countries walked out of the room when $300bn was proposed, saying their “needs are known” and “they are being ignored”.
Here we sum up the key takeaways from the two weeks of climate talks.
1. COP29 deal: Now countries need to pay up
Experts have already come out and said that the COP deal means nothing if countries don’t stump up the cash.
The deal states that the $300 billion will come from “all public and private sources”. Under a framework established by the UN in 1992, 23 developed countries – plus theEuropean Union – who are historically responsible for the most planet-heating emissions are obliged to contribute to climate finance.
Alongside governments,there is an expectation that international mega-banks, like the World Bank, will help foot the bill. And it means, hopefully, that companies and private investors will follow suit on channelling cash toward climate action.
As Simon Stiell, executive secretary of UN Climate Change, put it: “This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country. But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives.”
2. What will the COP29 climate finance be used for?
Developing countries are most and earliest impacted by climate change, yet they are the least well-equipped to deal with it.
The money they’ll (hopefully) receive is likely to be used for two main buckets: preparing for the impacts of climate change and transitioning away from emissions-producing fossil fuels.
Preparation, or adaptation as it is often called, means projects like building homes and roads that are more resilient in the face of extreme weather such as flooding. Or building new dams for when drought hits, such as that which has ravaged southern Africa for most of this year. This part is also about making critical industries like farming more sustainable.
Then to produce less emissions they’ll spend the money on installing solar and wind power and other renewables, as well as making industries less polluting. While it’s widely acknowledged that transitioning energy production away from fossil fuels is critical, it’s very difficult for developing countries to find the money to do so.
3. A new carbon market: ‘Not some bit of arcane UN bureaucracy’
Although this was dubbed the ‘finance COP’, there were other issues on the table.
Among these was a new set of rules that was agreed on a global carbon market, a deal that has been nearly a decade in the making. It establishes a global market for countries to buy and sell carbon credits.
As Simon Stiell, UN Climate Change Executive Secretary, put it carbon markets are “not some bit of arcane UN bureaucracy.” Instead they “help countries implement their climate plans faster and cheaper, driving down emissions.”
Carbon credits are created through projects such as planting trees or building wind farms in a poorer country that receive one credit for every metric ton in emissions that they reduce or suck out of the atmosphere. Countries and companies can then buy those credits to help reach their climate goals.
The newly adopted rules create two different types of markets. The first – known as Article 6.2 – regulates bilateral carbon trading between countries, while Article 6.4 creates a global crediting mechanism for countries to sell emissions reductions.
As Stiell said, “We are a long way from halving emissions this decade, but wins on carbon markets here at COP29 will help us get back in that race.”
4. Next year’s NDCs will be critical
By February 2025 all countries have to submit new plans for how they will reduce their emissions and adapt to the effects of climate change, known as Nationally Determined Contributions (NDCs).
These will be the next big marker after COP of how we’re doing on the path to net zero.
Some countries submitted their plans during COP29, with the UK, Brazil and the UAE being praised for their ambitious targets.
UN Secretary-General António Guterres, a strong advocate for rapid climate action, called on the G20 countries to lead with their plans.
He said everyone’s NDCs must: “cover all emissions and the whole economy, accelerate fossil fuel phase out, and contribute to the energy transition goals agreed at COP28 – seizing the benefits of cheap, clean renewables. The end of the fossil fuel age is an economic inevitability. New national plans must accelerate the shift, and help to ensure it comes with justice.”
5.COP30 in Belem will be the ‘COP of COPs’ says Brazil
The next COP will be a year from now in Belem, Brazil. What can we expect?
The country’s climate envoy, Ana Toni, told AFP that they will not “shy away” from calling for “a just transition on stopping fossil fuels”.
To the dismay of many campaigners, COP30 will be the third consecutive year the climate talks have been held in a country that plans to expand domestic production of fossil fuels.
Marina Silva, the Brazilian minister of the environment and climate change, told COP29 that the talks will be the “COP of COPs” with “no more time to lose”.
“At COP30, our objective will be to do what is needed to keep 1.5C in reach” she said.
