🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Factbox-Takeaways from the COP29 climate summit in Azerbaijan

Published 11/23/2024, 09:21 PM
Updated 11/24/2024, 01:00 AM
© Reuters. Flags fly near a venue of the COP29 United Nations climate change conference, in Baku, Azerbaijan November 20, 2024. REUTERS/Aziz Karimov

By Katy Daigle

BAKU, Azerbaijan (Reuters) - This year's U.N. climate summit delivered a deal on climate finance two days past deadline, after two weeks of tense negotiations.

Here are some of the takeaways from the COP29 summit held in Azerbaijan's capital of Baku:

CASH (TSX:CASH) FOR CLIMATE REMAINS TIGHT

The summit's main agenda item - setting a new annual target for global climate finance - had nations wrangling for two weeks. Even after reaching a deal for $300 billion a year by 2035, many developing countries said the amount was far too low.

They also warned that the deadline for a decade away in 2035 would hold back the world's transition to clean energy.

Some including India also lambasted wealthy nations for seeking to include contributions by developing countries in the annual target.

TRUMP TAMPS THE MOOD

Though he has yet to take office, climate denier Donald Trump's victory in the Nov. 5 presidential election soured the mood at COP29.

Trump has vowed to remove the United States from global climate efforts, and has appointed another climate skeptic as his energy secretary.

Trump's election meant the U.S. could offer little at COP29, despite being the world's biggest historical polluter and most responsible for climate change. It also curtailed ambitions on the finance target, with the world's biggest economy unlikely to contribute.

GREEN LIGHT FOR CARBON CREDITS

After nearly a decade of efforts to establish a rulebook for carbon credits, COP29 reached a deal to allow countries to begin establishing these credits to bring in funding and offset their emissions, or to trade them on a market exchange.

There are still some smaller details to be worked out, such as the registry's structure and transparency obligations. But proponents hoped the boost to carbon offsetting will help draw billions of dollars into new projects to help the climate fight.

COP PROCESS IN DOUBT

Despite years of ballyhooed climate agreements, countries raised alarms about the fact that both greenhouse gas emissions and global temperatures are still rising.

Countries have been hit by increasingly extreme weather, making clear that the pace of progress hasn't been fast enough to prevent a climate crisis.

This year is on track to be the warmest ever on record, with evidence of climate impacts spiraling faster than expected.

Widespread flooding has killed thousands and left millions hungry across Africa; deadly landslides have buried villages in Asia. Drought in South America has shrunk rivers - vital transport corridors - and livelihoods. And rain-triggered floods in both Spain and the United States have killed hundreds of people while wiping out billions in economic value.

TRADE TENSIONS TO THE FORE

Developing countries pushed hard at COP29 to open discussions about climate-related trade barriers, arguing that that their ability to invest in greening their economy was undermined by costly trade policies imposed by the world's wealthiest economies.

In focus was Europe's planned carbon border tax (CBAM). But equally worrying is the prospect of Trump introducing broad tariffs on all imports.

The the U.N. climate body agreed to add the issue to future summit agendas.

FOSSIL FUEL INTERESTS

This year's COP was the third in a row to be held in a fossil fuel producing country, with both the OPEC secretary general and the president of host country Azerbaijan telling the summit that oil and gas resources were "a gift from God."

© Reuters. Flags fly near a venue of the COP29 United Nations climate change conference, in Baku, Azerbaijan November 20, 2024. REUTERS/Aziz Karimov

In the end, the summit failed to set steps for countries to build on last year's COP28 pledge to transition away from fossil fuels and triple renewable energy capacity this decade.

Many negotiators saw that as a failure - and a sign that fossil fuel interests were overpowering climate talks.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.