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COP29 key moments: Azerbaijan president says fossil fuels are ‘gift from God’, negotiators eye $1.3tn climate finance deal

Negotiators seek a $1.3 trillion climate finance framework, Azerbaijan’s President Aliyev defends fossil fuels as a “gift from God,” and more key moments from COP29 in Baku

The COP29 UN climate conference opened in Baku on Monday. Image: Reuters

The COP29 UN climate summit in Azerbaijan has seen dramatic developments in its first three days, with the host nation defending fossil fuels as “a gift from god” whilst negotiators wrangle over a new climate finance framework worth potentially trillions of dollars.

Day one

The conference opened in Baku on Monday with immediate challenges, as countries spent hours negotiating the summit’s agenda before reaching a compromise late in the evening.

In a significant early win, nations approved rules for the UN’s new global carbon market under Article 6.4 of the Paris Agreement. The move was celebrated by COP29 President Mukhtar Babayev as “a game-changing tool to direct resources to the developing world.”

However, some Pacific nations expressed concern about the swift adoption. A Tuvalu representative noted their “reluctance” regarding the trend of sidestepping proper scrutiny.

The World Meteorological Organisation (WMO) delivered sobering news, announcing that 2024 is on track to be the warmest year on record. The first nine months showed global mean surface air temperature 1.54C above pre-industrial levels.

Day two

Azerbaijan’s President Ilham Aliyev sparked controversy during the World Leaders Summit, doubling down on fossil fuel production. “I want to repeat it today here at this audience – it’s a gift of god,” Aliyev declared, defending his nation’s oil and gas development.

His remarks stood in stark contrast to UN Secretary-General Antonio Guterres, who moments later called it “absurd” to double down on fossil fuels and demanded a 30 percent reduction in global fossil fuel production by 2030.

The United Kingdom announced new climate targets, with Prime Minister Keir Starmer committing to reduce emissions by 81 percent by 2035 compared to 1990 levels, building on the nation’s existing 2030 target of 68 percent.

In a significant regional development, Saudi Arabia’s Regional Voluntary Carbon Market Company launched its carbon exchange platform, with 22 domestic and international companies joining on the first day of trading. The initiative aims to position the Kingdom as one of the world’s largest voluntary carbon markets by 2030.

Day three

The finance negotiations took centre stage as developing nations united under the G77 and China group, demanding a new climate finance framework worth $1.3 trillion annually. They rejected attempts to expand the contributor base beyond traditional donor countries, setting up a potential clash with wealthy nations.

Multilateral development banks announced plans to increase climate financing to $170 billion annually by 2030, up from $125 billion in 2023. Over 70 percent of the funds are earmarked for low and middle-income countries.

Brazil, host of next year’s COP30, revealed its updated climate plan targeting emissions cuts of 59-67 percent from 2005 levels by 2035. However, environmental groups criticised the plan for not addressing the country’s planned 36 percent increase in oil and gas production during the same period.

Key developments

  • US climate envoy John Podesta announced the finalisation of methane emission fines for oil and gas companies, starting at $900 per metric tonne and rising to $1,500 by 2026.
  • Sweden pledged 200 million krone ($18.4 million) to the Loss and Damage Fund, though total new commitments at COP29 remain under $50 million.
  • Shell won its appeal against a 2021 Dutch court ruling that had ordered the company to cut emissions 45 percent by 2030.

Notable absences

The summit has been marked by significant absences, with leaders including US President Joe Biden, China’s Xi Jinping, India’s Narendra Modi, and France’s Emmanuel Macron not attending. Saudi Arabia’s Crown Prince Mohammed bin Salman also cancelled his planned appearance.

As the conference continues, attention focuses on the critical climate finance negotiations, with developing nations insisting they “cannot afford for their governments to leave COP29 without a global climate finance goal,” according to UN climate chief Simon Stiell.

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Tala Michel Issa

Tala Michel Issa

Tala Michel Issa is the Chief Reporter at Arabian Business and Producer/Presenter of the AB Majlis podcast. Her interviews feature global figures including former Nissan Chairman Carlos Ghosn, Mindvalley's...