The United Nations climate summit COP29 opened in Baku on Monday, with delegates facing complex negotiations over a new global climate finance framework that could reach up to $1 trillion annually for developing nations.
The summit in Azerbaijan’s capital marks a crucial moment for climate negotiations as countries work to replace the existing $100 billion annual pledge that expires this year. The talks are taking place against a backdrop of increasing climate disasters and mounting pressure from developing nations for enhanced financial support.
Azerbaijan, a major energy producer undertaking its own transition, faces the challenge of steering negotiations towards implementing last year’s COP28 commitments. The country has been gradually reducing its dependence on oil and gas revenues, which accounted for 35 percent of its economy in 2023, down from 50 percent two years earlier.
A key focus of the two-week conference will be establishing the New Collective Quantified Goal for climate finance. UN development officials have suggested that $890 billion will be needed next year, potentially rising to $1.5 trillion annually by 2029. The Arab Group of countries has proposed a baseline of $441 billion per year from developed nations, with the aim of attracting private investment to surpass the $1 trillion mark.
The summit builds on the UAE Consensus from COP28, which set major climate targets including:
- A commitment to move away from fossil fuels
- Plans to triple renewable energy capacity
- A target to double energy efficiency by 2030
- Emission reduction goals of 43 percent by 2030 and 60 percent by 2035
- A commitment to end deforestation by 2030
Before formal negotiations can begin, countries must reach consensus on the summit agenda, complicated by a last-minute proposal from China. Speaking on behalf of the BASIC group (Brazil, India, and South Africa), China has requested discussions on trade-related climate measures, including the European Union’s carbon border tariffs set to take effect in 2026.
The conference structure includes both a Blue Zone for formal negotiations and a Green Zone open to the public. The Blue Zone will host the primary negotiations and decision-making processes, whilst the Green Zone will feature exhibitions, workshops, and cultural events related to climate change.
The implementation of the Loss and Damage Fund, established at COP28, will be a key focus of discussions. The fund aims to support communities most affected by climate change, particularly in Small Island Developing States and Least Developed Countries. The UAE has already committed $100 million to this initiative, with South Korea also indicating its willingness to contribute.
The summit occurs at a critical juncture in the Paris Agreement timeline, as countries prepare to submit updated Nationally Determined Contributions (NDCs) in 2025. These climate action plans are part of the agreement’s five-year cycle aimed at limiting global warming to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit it to 1.5 degrees.
Another key objective is ensuring all countries develop National Adaptation Plans by 2025, with emphasis on scaling up adaptation finance. The presidency is also encouraging global financial institutions and the private sector to increase climate finance and investment in green innovation.
The negotiations face several challenges, including ongoing debates about who should contribute to climate finance. Under current UN rules established in 1992, developed nations are expected to provide the majority of climate funding. However, there are growing calls for wealthy developing nations to contribute, reflecting changes in global economic dynamics over the past three decades.
The conference, scheduled to run until November 22, will see participation from 197 countries, with delegates working to build upon previous agreements whilst addressing the urgent need for enhanced climate action and financial support for vulnerable nations.
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