COP29: Some progress on key issues agreed at the UN climate talks

Sun 24 November 2024 View all news

The 29th Conference of the Parties (COP29) ended in Baku in late November. Several key agreements on finance and carbon markets were negotiated, but several other decisions were deferred.

Outcomes of COP29 (as published by the Climate Change Commitee)

  • A new finance goal. Agreement was reached on a new climate finance goal of at least $300 billion per year from the developed world by 2035. This was a compromise outcome, with some developing countries expressing frustration and disappointment. There was recognition of the much greater scale of overall finance needed, calling for at least $1.3 trillion per year by 2035. This marks a shift to formally recognising the wider mobilisation required, which will only be achieved if climate change investment is mainstreamed into wider public and private finance flows.
  • Finalised carbon market agreement. COP29 saw agreement on the rules underpinning both bilateral carbon trading and a centralised crediting mechanism. The conclusion of these negotiations was a necessary advance. Functioning carbon markets can enable increased global ambition and emissions reduction delivery, subject to robust standards, which must now be developed.
  • Wider progress on mitigation was limited. The announcement of 2035 Nationally Determined Contributions (NDCs) from Brazil, the United Arab Emirates (UAE), and the UK gave useful early momentum towards the submission of NDCs from all countries next year. But in the negotiations, there was a failure to build on the first global stocktake from last year’s COP28. Urgent and substantial steps are required to contribute towards meeting the Paris Agreement temperature goal – notably to transition away from fossil fuels. It leaves a huge amount of progress to be made prior to next year’s COP30 in Brazil.
  • Limited progress on adaptation. COP29 demonstrated the growing importance of adaptation and the need for greater support and guidance for countries. Some functional progress was made on defining indicators for the Global Goal on Adaptation, but key decisions were postponed to COP30.
  • Sectoral coalitions. Outside of the formal negotiations, work continued to support delivery through state and private sector coalitions. Progress was made in key areas of action including breakthrough technologies, energy storage, methane emissions reduction, and forests.

Next steps for the UK

  • Working with the COP30 Brazil presidency and other parties, the UK has the opportunity to play a significant diplomatic role in supporting global climate progress in the next year. Key actions include, but are not limited to, the following:
  • Leveraging UK finance sector expertise. The UK is well positioned to support delivery of the finance goal, including through continuing to pursue reform of international financial institutions and developing wider sources of finance.
  • Continuing to strengthen delivery coalitions. The UK should clearly set out the processes to coordinate the new UK-led Global Clean Power Alliance, including how it will complement other multilateral and industry coalitions also working on fossil fuel reduction and clean energy.
  • Submitting a comprehensive UK NDC. Alongside formalising the 81% target, the UK NDC must set out the UK’s plans to contribute across the goals of the Paris Agreement, including climate change adaptation and finance.

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