By Kevin Kearney, Director, Corporate Affairs
In 1992, over 150 countries signed the UNFCCC (United Nations Framework Convention on Climate Change), laying the ground for the UN’s yearly “COP” (Conference of the Parties) gatherings. Hosted by a different nation every 12 months, the conferences serve as the most important global meetings on mitigating the impact of climate change – decision-making delegates meet to negotiate and close deals to aid that mitigation.
As leaders gathered in Baku for COP29 over the past few weeks, the stakes for meaningful climate action have never been higher. With 2024 on track to be the hottest year on record, this year’s conference took on added urgency.
This year’s COP featured both drama – including extending into overtime this past weekend after an initial financing plan to aid smaller countries was balked at – and breakthroughs. A few highlights include:
Historic Support Package for Developing Nations
A $300 billion financing plan was approved to support developing countries over the next decade. This landmark agreement effectively triples previous commitments, though experts note even this substantial increase may fall short of optimal funding levels.
Carbon Market Breakthrough
After years of negotiation, delegates finally reached consensus on international carbon crediting standards. This agreement paves the way for a centralized carbon market, creating a structured framework for emissions trading while directing crucial resources to developing nations.
Loss and Damage Fund Becomes Operational
In a significant milestone for climate justice, the Loss and Damage Fund moved from concept to reality. Set to begin distributions in 2025, this mechanism will provide crucial support to vulnerable nations facing climate-related disasters.
Methane Action Plans
A trilateral initiative between the U.S., China and Azerbaijan introduced new methane reduction strategies. Among other areas, the plans focus on waste management and facility monitoring – two spaces that, with a little effort, could dramatically improve global emissions numbers.
Brazil’s Bold National Determined Contributions (NDC) Commitment
Setting an impressive benchmark, Brazil pledged to reduce emissions by up to 67% by 2035 compared to 2005 levels, demonstrating the kind of ambitious target-setting needed to meet global climate goals.
China’s Emerging Leadership Role
Against the backdrop of U.S. political uncertainty, China has strategically positioned itself as a clean energy leader (along with the EU). While still classified as a developing country, China’s creative approaches to funding smaller nation’s renewable transitions signal its growing influence in global climate action.
Legitimacy Concerns Surface
The conference faced scrutiny over its location, with senior UN officials breaking from their official duties to formally question the appropriateness of hosting climate talks in nations with strong fossil fuel industry ties. The move underscored the challenge of balancing diverse stakeholder interests to address climate issues. More from NYT’s Brad Plumer here.
Cryosphere Crisis Recognition
New research on accelerating ice sheet melting dominated many discussions, with its implications for sea levels and ocean currents informing both financing decisions and emissions targets.
1.5°C Target Under Pressure
Scientific reports presented at COP29 reinforced the challenge of limiting warming to the 1.5°C target, emphasizing the urgent need for more aggressive action. Without that action, conversations could soon shift to how to live in a post-1.5°C world.
So What?
Companies interested in offsetting their carbon emissions will finally have a clear, globally recognized framework to refer to. Additionally, future regulatory uncertainty with the incoming administration means private corporations and state-level efforts will likely shoulder climate-focused responsibility in the years ahead. While the administration’s impact on the domestic climate space is still hypothetical, corporate leaders are well-positioned to help lead action should federal monetary support wane.
As we reflect on COP29, while progress has been made, the global community must continue to consider how it can contribute meaningfully to the deepening climate crisis. Specifically, corporations can leverage their vast resources and expertise across numerous areas.