The 29th UN Climate Change Conference (COP29) in Baku, Azerbaijan closed today with a new finance goal after two weeks of intense negotiations, following by significant achievements.
Establishing New Standards for the Carbon Credit Market
COP29 has reached a notable consensus on the operational framework for the carbon market, which includes country-to-country trading (Article 6.2) and carbon credit mechanisms (Article 6.4). The agreement in Article 6.2 outlines how countries will authorize carbon credit trading and how registries will monitor these activities. Meanwhile, the Article 6.4 mechanism creates a centralized carbon market under UN management, providing financial benefits to developing countries, along with the essential capacity-building support for market participation. This mechanism also requires projects to comply with environmental and human rights protection standards, including ensuring consent from indigenous peoples. It also allows anyone affected by a project to appeal a decision or file a complaint. The work on carbon market will continue after COP29, with a to-do list extending to 2025 for the Supervisory body.
New finance goal
Nearly 200 nations have reached a breakthrough agreement on climate finance, aiming to triple public finance to developing countries from $100 billion to $300 billion annually by 2035. This agreement, known as the New Collective Quantified Goal on Climate Finance (NCQG), also sets a target to mobilize a total of $1.3 trillion per year from both public and private sources for developing countries. Simon Stiell, Executive Secretary of UN Climate Change emphasized this new financial goal serves as "insurance for humanity" amid worsening climate change. However, he noted that the agreement does not fully meet the expectations of all parties and requires further work in the coming year. New Nationally Determined Contributions (NDCs) will be presented next year, covering all greenhouse gases and sectors to keep temperature rise within the 1.5°C limit.
Transparent climate reporting
Transparent climate reporting made big strides forward in Baku, building a stronger evidence base to strengthen climate policies and helping to identify financing needs. To date, 13 Parties have now submitted their first Biennial Transparency Reports (BTR). Andorra, Azerbaijan, the European Union, Germany, Guyana, Japan, Kazakhstan, the Maldives, the Netherlands, Panama, Singapore, Spain, and Turkey have led the way on transparent climate reporting, and set an example for others. Overall, all transparency negotiating items concluded successfully at COP29, resulting in new reporting tools for the Enhanced Transparency Framework (ETF) of the Paris Agreement. A total of 42 events were organized under #Together4Transparency initiative, highlighting the vital role of transparency in preparing climate plans (NDCs) and net-zero pathways. A commitment of £3 million from the UK International Forest Unit was announced to support REDD+ activities, aimed at enhancing transparency and aligning with the global goal of halting deforestation and forest degradation by 2030.
Climate Change Adaptation
The COP decision on matters regarding Least Developed Countries (LDCs) established a support program for the implementation of National Adaptation Plans (NAPs) for the LDCs. Parties extensively discussed the second five-year assessment of progress to formulate and implement NAPs, and will continue that in June 2025. A High-Level Dialogue on NAPs convened ministers from LDCs and Small Island Developing States (SIDS) to focus on innovative financing, technical support, and accelerated action to meet the 2025 submission deadline for NAPs. COP29 also launched the Baku Adaptation Road Map and Baku high-level dialogue on adaptation to enhance the implementation of the UAE Framework, raising ambitions for future transformative climate adaptation. Notably, COP29 amplified the voices of Indigenous Peoples and local communities in climate action, adopting the Baku Workplan and renewing the mandate of the Facilitative Working Group (FWG) of the Local Communities and Indigenous Peoples Platform (LCIPP). The adopted decision acknowledges the progress made by FWG in promoting collaboration among parties and emphasized the leadership role of LCIPP in addressing the climate crisis.
Gender and Climate Change; Children, and Youth participation
Countries agreed a decision on gender and climate change, extending the enhanced Lima Work Programme on Gender and Climate Change for another 10 years, reaffirming the importance of gender equality and advancing gender mainstreaming throughout the convention. They also agreed to develop a new gender action plan for adoption at COP30. COP29 underscored the importance of empowering all stakeholders to engage in climate action; in particular under Action for Climate Empowerment (ACE). For the first time, COP29 created dedicated spaces to ensure the participation of children within the Youth-Led Climate Forum, including the youngest at just 10 years old, took on roles as moderators and speakers. Their participation highlighted the importance of inclusivity and intergenerational collaboration in driving climate action.