COP 29 which was held in Baku, Azerbaijan was billed as the ‘finance COP‘. The main goal of COP 29 was to finalize a new goal on finance- often termed as New Cumulative Quantitative Goal on Climate Finance (NCQG). The Paris Agreement 2015 (COP 21) had called for the finalization of NCQG before 2025. However, the agreement did not mention the year from which the new amount has to be mobilized.
The developing countries had asked for the NCQG to be set at 1.3 trillion dollars every year. However, the developed countries completely ignored the demands of the developing countries. The developed countries managed to force an agreement at COP 29, of putting together 300 billion dollars a year as part of the NCQG framework, that too from 2035. India vociferously opposed the climate finance commitment of the developed countries and called the amount ‘abysmally poor‘ and ‘paltry‘.
| Table of Content |
| What were the outcomes of COP 29? What are the positive outcomes of COP 29? What are the shortcomings of COP 29? What Should be the Way Forward? |
What were the outcomes of COP 29?
| New collective quantified goal on climate finance | Developed countries have committed to fund $300 bn a year for developing countries by 2035. This replaces the earlier goal of developed countries financing $100bn per year. |
| Carbon Markets (Under Article 6 of the Paris Agreement) | COP 29 operationalized the Paris Agreement Crediting Mechanism and finalized framework for country-to-country trading of carbon credits. |
| Centralised UN trading system for green credits | A centralized UN trading system was agreed to be launched for the operationalization of carbon markets. This will allow countries to trade in carbon credits. |
| Baku Adaptation Roadmap | Baku Adaptation Roadmap was launched to expedite National Adaptation Plans (NAPs). |
| Baku Workplan | Baku Workplan calls for strengthened role of Indigenous Peoples and local communities in climate change mitigation, and acknowledging their critical contributions in addressing climate crisis. |
| Extension of Lima Work Programme | Lima Work programme which emphasized on gender mainstreaming in climate actions, was extended by COP 29. |
| Enhanced transparency in Climate Reporting | Biennial Transparency Reports (BTRs) were submitted by 13 countries under the Enhanced Transparency Framework. |
India’s initiative in COP 29
| LeadIT Summit | India co-hosted LeadIT Member Meet with Sweden. The summit focusses on decarbonization of heavy industry. |
| Solar Energy Leadership | India promoted solar adoption through International Solar Alliance (ISA). India has been targeting a 20-fold increase in global solar energy capacity by 2050. |
| SIDS Adaptation Finance | India has advocated finance unlocking and disaster-resilient support for SIDS. |
What are the positive outcomes of COP 29?
1. Tripling Climate Finance for Developing Countries- A major achievement of COP29 was the agreement to triple climate finance to developing countries from the previous target of USD 100 billion annually to USD 300 billion by 2035.
2. Establishment of Carbon Market Mechanisms- COP29 successfully finalized agreements on the carbon market mechanisms outlined in Article 6 of the Paris Agreement, which had been unresolved for nearly a decade. This includes provisions for both bilateral carbon trading (Article 6.2) and a global crediting mechanism (Article 6.4).
3. Focus on National Adaptation Plans (NAPs)- A support program for implementing NAPs has been established at the COP 29 to address climate adaptation for least developed countries (LDCs).
4. Commitment to Transparent Climate Reporting- COP29 has reinforced the importance of transparent reporting on climate finance and adaptation efforts. Biennial Transparency Reports (BTRs) were submitted by 13 countries under the Enhanced Transparency Framework.
What are the shortcomings of COP 29?
1. Inadequate Financing- The finance commitment of developed countries to provide $300 billion annually by 2035, is ‘too little, too distant‘ when compared to the estimated $1.3 trillion needed each year by the developing countries.
2. Overreliance on Loans Instead of Grants- The financial package agreed upon is being criticized for being heavily reliant on loans rather than grants. This approach of sanctioning loans instead of providing for grants, could exacerbate the debt burdens of developing nations already struggling with economic challenges.
3. Failure to Address Fossil Fuel Phase-Out- ‘Transitioning away from fossil fuels’ that was hailed as a historic breakthrough in the final decision of COP 28 in Dubai was not repeated in the mitigation outcome in COP 29.
4. Unmet Emission Goals- COP 29 saw insufficient pledges to meet the 1.5°C target. According to IPCC the global emissions have been rising in 2023.
5. Choice of Host Nation Concerns- The choice of Azerbaijan (Oil-rich economy and authoritarian governance) as the host nation has been criticised for contradicting the goals of a climate conference aimed at reducing fossil fuel dependence.
What Should be the Way Forward?
1. Introduction of New Indicators- New tangible indicators need to be identified to measure progress on each of the global goals established at COP 29.
2. Establishment of Financial Mechanism- Financial mechanism must be established for tracking the contribution of developed countries.
3. Binding commitments– Efforts must be taken to make the renewable energy pledges binding on all the member countries.
4. Climate Justice- Common but Differentiated Responsibility (CBDR) must remain the guiding light in upcoming climate negotiations.
| Read More- The Hindu UPSC Syllabus- GS 3- Climate Action and Climate Change, Conservation |
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