In the early hours of Sunday, COP29 representatives in Azerbaijan achieved a landmark consensus after prolonged discussions and negotiations.
The COP29 Presidency unveiled the Baku Finance Goal, a groundbreaking pledge to channel $1.3 trillion annually in climate finance to the developing world by 2035. This commitment represents a monumental leap from the earlier $100 billion goal, setting the stage for an unprecedented era of global climate investment.
$300 billion per year
The COP29 agreement includes a core financing target of $300 billion per year, which is three times the previous target of $100 billion, according to the official COP29 website. This target reflects an increase of $50 billion over earlier drafts and resulted from 48 hours of intensive diplomacy by the COP29 Presidency.
Special emphasis is placed on supporting the least developed countries and small island developing states, with provisions for access and transparency.
The climate conference in Baku, Azerbaijan, marks the end of the first decade following the Paris Agreement and takes a significant step toward achieving climate goals in the coming decade.
Best possible deal
“The Baku financing goal is the best possible deal we could have reached,” stated COP29 President Mukhtar Babayev. “In a year marked by geopolitical fragmentation, many doubted Azerbaijan’s ability to meet its commitments and questioned whether parties could reach agreement. They were mistaken on both counts.”
Carbon markets
Additionally, COP29 concluded a decade-long negotiation concerning Article 6 on high-integrity carbon markets under the UN framework. Financial flows from compliant carbon markets could potentially reach $1 trillion per year by 2050 and have the capacity to reduce the costs of implementing national climate plans by $250 billion annually.
Operationalizing Loss and Damage Fund
The Baku financing goal is the cornerstone of a package of agreements that promotes progress across all climate pillars. This includes operationalizing the Loss and Damage Fund and preparing it to disburse funds by 2025.
This agreement follows months of intense diplomacy by the Azerbaijani Presidency, addressing some of the most complex and contentious tasks in multilateral climate action. It represents a crucial step in charting a path toward limiting global warming to 1.5°C.
