COP28 was a significant event in many ways. Hosted in Dubai, UAE, it marked a milestone with substantial breakthroughs and unprecedented collaborations. The conference, led by H.E. Dr. Sultan al-Jaber, was defined by a powerful call for unity and action against the climate crisis. The key outcomes from COP28 establish a solid foundation for COP29 to build upon.

One of the most significant achievements of COP 28 was establishing the “Loss and Damage” Fund, which aims to support climate-vulnerable developing countries. This Fund was operationalised on the first day of the conference, with countries pledging hundreds of millions of dollars. By the end of COP28, the overall funding had reached USD 85 billion, including innovative private finance. Other notable funds include the host nation UAE pledging USD 270 bn in green finance by 2030 through its banks and committing USD 30 bn to ALTERRA, making it the world’s largest private investment vehicle for climate change action.

The inaugural Global Stocktake resulted in the “UAE consensus,” marking the “beginning of the end” of the fossil fuel era by advocating for a just and equitable transition away from fossil fuels. This consensus has led to significant achievements, including a pledge from 118 countries to triple renewable energy capacity and double global energy efficiency by 2030. 

Several key energy initiatives of the Global Decarbonisation Accelerator (GDA) program saw notable progress. In July 2024, a prominent player in China’s oil and gas sector joined the Oil and Gas Decarbonization Charter (OGDC), while Global Methane Pledge (GMP) Champions urged all GMP countries during the New York Climate Week in September 2024 to incorporate methane reduction strategies into their upcoming Nationally Determined Contributions (NDCs).

Another significant milestone was the agreement among parties on the Global Goal on Adaptation (GGA), which focuses on climate adaptation strategies that align necessary finance, technology, and capacity-building support to achieve the goal. The GGA encompasses critical themes: water, food, health, ecosystems, infrastructure, poverty eradication, and cultural heritage. The Green Climate Fund (GCF), having secured pledges from 31 countries at COP28, has approved a landmark $1 billion in financing for 17 projects in 35 developing countries in July 2024. Furthermore, the UAE Climate and Health Declaration and the UAE Declaration on Agriculture, Food, & Climate at COP28 sought to incorporate health factors and sustainable food systems into climate initiatives.

The Path Forward: COP29 Ambitions and Objectives

As COP 29 approaches, the ambitions and objectives for the conference have never been more apparent. With President Ilham Aliyev of Azerbaijan at the helm, COP 29 is set to push the global climate agenda forward, particularly by enhancing climate action and transparency. One core aim is to finalise a new collective quantified goal for climate finance. It is crucial for supporting developing nations as they address the rising costs of climate adaptation and mitigation. By focusing on inclusivity, transparency, and sustainable growth, COP 29 seeks to unite developed and developing nations to implement meaningful action toward limiting global warming to 1.5°C. These efforts include ambitious initiatives like the Baku Global Climate Transparency Platform, which will bolster national transparency reports, enabling more robust climate action globally. The main goals of COP29 are to ‘enhance ambition’ and ‘enableaction.’

Enhance Ambition

The first pillar centers on establishing transparent and challenging objectives, given the outcomes of the Global Stocktake to limit the global temperature increase to 1.5°C. This includes thorough and vital Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs), and Biennial Transparency Reports. The leadership has highlighted the importance of all nations aiming for the greatest possible ambition, considering fairness and the principle of shared but varied responsibilities.

At COP29, one crucial aspect of boosting ambition will be the establishment of the New Collective Quantified Goal (NCQG) on climate finance. This goal is designed to significantly increase the provision of climate finance to developing countries to bridge the substantial gap in climate finance, allowing them to engage in climate action fully. Effectively fulfilling essential responsibilities and taking necessary actions will help foster trust, solidarity, and momentum.

Enable Action

The second pillar focuses on the means of implementation and support, including finance, technology, and capacity building. The COP29 presidency has clarified that climate finance is its top priority. It aims to agree on a fair and ambitious NCQG that reflects the urgency and scale of the climate crisis. Strengthening multilateral financial institutions and climate funds will create an enabling environment for success​.

COP29 will give primary attention to finalising Article 6, intended to improve capital markets, establish feasible economic models for climate-positive measures, and direct financial and technical resources to the developing world. Also, the presidency is dedicated to dealing with loss and damage, putting the Fund into operation to address Loss and Damage, and ensuring that funds are delivered in a timely and accessible manner.

Looking ahead to COP 29

The shift from COP 28 to COP 29 is a critical period of consistent advancement. The accomplishments in Dubai have laid the groundwork for Baku’s aspirations. The advancements in establishing the loss and damage fund, the commitments to tripling renewable energy capacity, and the array of declarations and initiatives introduced at COP 28 provide a sturdy basis for COP 29 to develop further.

Additionally, the insights provided by the Global Stocktake are valuable for shaping the conversations and decisions at COP29. The Global Stocktake, mandated by the Paris Agreement, assesses global progress on climate action every five years. It evaluates efforts to slash greenhouse gas emissions, enhance resilience, and secure finance. The first-ever Stocktake concluded at COP 28 reveals that, though progress has been made, more decisive action is necessary to achieve the long-term goals of the Paris Agreement. As we move toward COP 29, this assessment provides a critical compass for accelerating expanded climate financing and setting high-reaching NDCs.

Message from COP 29 Leadership

The leadership at COP 29 is keen to continue the inclusive and collaborative approach that characterized COP 28. In his letter to the Parties, the President of COP 29 expressed his gratitude for the direction and support from various stakeholders and emphasized the need for a transparent, impartial, and inclusive process. Appointing high-level and youth climate champions further underscores the commitment to inclusivity and broad-based engagement​​.

President Ilham Aliyev stated, “It is critical now more than ever to act on climate change as a common commitment, a moral duty, and an unmissable opportunity for sustainable development.” This sentiment echoes the collaborative spirit of COP 28 and sets a hopeful tone for COP29.

Uniqus POV

As we look forward to COP 29, the global community must play a pivotal role in the battle against climate change.  While COP 28 made considerable progress, much work remains to be done. COP29 aims to increase ambition and facilitate action, building on previous achievements and addressing the remaining challenges. 

Some essential agenda items will be delivering well-functioning carbon markets for Article 6 of the Paris Agreement to be operational, mobilizing more significant financial commitments since this COP is also being called the ‘Finance COP,’ and getting the adaptation, loss, and damage fund on track.

In recent years, we have seen an uptake in climate commitments and action in the Middle East because of two successive COPs in the region. Businesses started to change their strategic decision-making, which had been dependent on conventional businesses for generations. With the advent of COP 29 in Azerbaijan, we will see more innovative solutions being proposed to shift the world away from a high reliance on fossil fuels. 

As we count down to the conference in Baku, we hope that a spirit of collaboration and determination will lead to meaningful results and a brighter, more sustainable future for everyone.

—Anu Chaudhary, partner and global head, ESG PRACTICE, UNIQUS CONSULTECH