COP29 has convened in Baku, Azerbaijan, gathering world leaders, policymakers, and industry frontrunners with a unified goal: accelerating the global transition toward a climate-positive future. With temperatures edging perilously close to the 1.5°C threshold, this year’s conference places an urgent emphasis on moving beyond commitments to tangible, impactful climate action. Governments and businesses alike are being called upon not only to reduce emissions but to adopt a transformative Climate Positive Action—an approach centered on reversing environmental damage and fostering ecological renewal.

From Net Zero to Climate Positive: A Strategic Shift for Business

For businesses, offsetting emissions is no longer sufficient. Climate Positive Action demands an evolution in strategy, operations, and financial modelling to drive systemic change across value chains. This ambitious approach encourages companies to:

• Drive Innovation: Through investments in advanced technologies such as carbon capture, direct air capture, and regenerative agriculture.
• Create New Markets: By developing products and services that actively contribute to ecological restoration.
• Build Brand Value: By responding to consumer demand for authentic climate action.
• Unlock Financial Opportunities: By accessing green financing options, including green bonds and sustainability-linked loans (SLLs), that support ambitious climate-positive objectives.

COP29’s Core Priorities: Bridging the Gap Between Pledges and Action

COP29 has emphasised the widening gap between current pledges and the immediate action required to mitigate climate catastrophe. 

Key agenda points include:

Strengthening Nationally Determined Contributions (NDCs): As projections indicate that the 1.5°C threshold could be crossed as early as the 2030s, countries are under pressure to submit more ambitious emissions targets. Strengthened NDCs are critical to meeting global climate goals and preventing dangerous levels of warming.

Redefining Climate Finance: Developing nations are advocating for an enhanced New Collective Quantified Goal (NCQG) to support mitigation, adaptation, and loss and damage efforts. Despite a long-standing pledge of $100 billion annually from developed countries, financial support has often been delayed or insufficient. COP29 presents a pivotal opportunity to restructure climate finance, ensuring that funds reach the countries that need them most.

Operationalising the Loss and Damage Fund: Established at COP28, the Loss and Damage Fund now requires a clear framework to ensure timely disbursement of support to nations most affected by climate impacts. Streamlining this process at COP29 is essential to providing fast, direct aid to vulnerable regions.

Regulating Carbon Markets: Clear and robust regulations are crucial for transforming carbon markets into reliable tools for financing climate action. COP29 builds on previous efforts to establish a framework that ensures transparent, measurable emissions reductions and effective market practices.

Sustainable Finance: A Catalyst for Climate Positive Action

Sustainable finance is essential for empowering businesses to implement climate-positive strategies. Financial instruments such as green bonds and SLLs provide the necessary capital to scale impactful solutions, driving long-term change. Key instruments include:

• Green Bonds: Designated for projects with direct environmental benefits, green bonds help businesses fund initiatives aligned with climate-positive objectives.
• Sustainability-Linked Loans (SLLs):   These loans are tied to specific sustainability performance targets (SPTs), allowing companies to align their financing with measurable climate-positive achievements. As SLLs link financing costs to sustainability outcomes, they offer strong incentives for meaningful progress.

Leveraging Technology and ESG Solutions for Sustainable Transformation

To meet ambitious ESG and sustainability goals, businesses are increasingly turning to data-driven technology solutions. ESG service providers play a vital role by enabling organisations to:

Develop Comprehensive Sustainability Strategies- Identifying and prioritising climate-related risks allows businesses to create proactive, effective sustainability plans.

Track and Verify Progress – Transparent tracking of Sustainability Performance Targets (SPTs) ensures accountability, helping companies maintain their climate commitments.

Access Sustainable Finance – By demonstrating adherence to ESG principles, businesses unlock access to a range of green financing options that fuel climate-positive growth.

India’s Leadership at COP29: Advocating for Equitable Climate Finance

As a major developing economy, India is a critical voice at COP29, pushing for fair climate finance frameworks that hold developed countries accountable for their commitments. India’s focus on resilience, green credit, and transparent funding models highlights the need for balanced contributions that consider both development and climate goals.

Embracing Climate Positivity: The Path Forward

Transitioning to a climate-positive economy calls for bold, collaborative action. For businesses, this is an opportunity not only to innovate and create value but also to drive sustainable growth. By embracing sustainable finance and partnering with ESG solution providers, companies can transform their climate ambitions into tangible, positive action—laying the groundwork for a future where climate positivity becomes a cornerstone of the global economy. COP29 marks a critical step toward this vision, inspiring a new era of collective climate leadership and impact.

—Smitha Shetty – Regional Director – APAC – Achilles Information Ltd