COP29, held in Baku, Azerbaijan, brings together representatives from 198 countries to negotiate climate finance, carbon markets, and the global response to climate change.

In this blog, we explore COP29’s objectives and historical context, focusing on key issues such as climate finance, carbon removal technologies, and the complexities involved in carbon market mechanisms.

Background of COP and UN Climate Initiatives

The Conference of the Parties (COP) originated in 1995 under the United Nations Framework Convention on Climate Change (UNFCCC), created as a global platform to negotiate strategies to limit global warming and mitigate climate change impacts. Established at the Earth Summit in Rio de Janeiro in 1992, the UNFCCC began with the foundational goal of supporting nations in managing rising temperatures through international collaboration. By 1997, COP3 marked a critical step with the Kyoto Protocol, which introduced legally binding emission targets for developed countries. Extending over two commitment periods, the protocol set a precedent for international climate agreements.

In 2015, the Paris Agreement elevated global climate ambitions, with nearly 200 countries agreeing to limit global warming to well below 2°C and ideally to 1.5°C above pre-industrial levels. The agreement stressed climate finance for vulnerable regions, along with transparency measures and capacity-building initiatives to help all countries address climate impacts. Since then, each COP has been a platform for advancing these commitments, and COP29 builds on this foundation, addressing climate finance, carbon markets, and broader environmental justice concerns.

Key Themes at COP29: Finance and Carbon Markets

Establishing a New Climate Finance Goal

COP29 has been widely regarded as the “finance COP” due to its emphasis on setting a new climate finance target, known as the New Collective Quantified Goal (NCQG). The current $100 billion per year target, set in 2009, expires in 2025, prompting calls for a more ambitious target that reflects the increasing costs of climate action and adaptation. This would support both adaptation initiatives and sustainable development across various regions. By strengthening financial flows to economically diverse regions, COP29’s finance goal seeks to ensure a fairer distribution of resources aligned with climate justice principles.

Debates on Carbon Market Mechanisms

Another core focus of COP29 is Article 6 of the Paris Agreement, which outlines international carbon markets. Carbon markets aim to incentivise emissions reduction through financial mechanisms but remain controversial. Proponents view them as essential tools for mobilising investment in green technologies, yet critics worry that markets may enable major emitters to rely on “offsets” rather than making direct reductions in emissions. This year, negotiations also centre around the inclusion of Carbon Dioxide Removal (CDR) technologies, which raise additional concerns regarding their effectiveness and ethical implications.

Geoengineering and Precautionary Concerns

At COP29, discussions on Article 6 and Carbon Dioxide Removal (CDR) technologies underscore the complexities of integrating geoengineering approaches, such as Bioenergy with Carbon Capture and Storage (BECCS) and Direct Air Capture (DAC), into carbon markets. Some experts caution that these technologies could pose risks to ecosystems and nearby communities, particularly in areas dependent on fisheries and agriculture. Questions remain regarding whether these methods can securely and permanently store CO₂ without causing unintended environmental impacts.

The UN Convention on Biological Diversity (CBD) has recently reaffirmed a precautionary approach toward geoengineering, citing potential risks to biodiversity, while ongoing marine geoengineering regulations under the London Protocol further highlight concerns over large-scale carbon removals.

Critics worry that incorporating CDR technologies into carbon markets might inadvertently put climate mitigation goals at odds with biodiversity protection. The broad definition of carbon removals adopted by the Article 6.4 Supervisory Body allows for various geoengineering methods, despite ongoing scientific debate over their efficacy. As COP29 negotiations proceed, parties will need to consider how carbon removals align with broader environmental safeguards established by other UN bodies.

Presentations and Key Speakers

The World Leaders Climate Action Summit, held on 12 and 13 November, is a highlight of COP29, where heads of state will present updates on their Nationally Determined Contributions (NDCs). These presentations provide insights into each country’s efforts to meet the Paris Agreement goals, with a focus on enhanced ambition and accountability. COP29 also includes high-level roundtables on climate resilience and sustainable finance, offering participants a platform to discuss integrative climate and economic strategies.

The OECD COP29 Virtual Pavilion extends these discussions online, covering topics from biodiversity to social inclusion, and is accessible globally. Together, these events represent a range of perspectives and underscore the multifaceted approach required to address climate change.

Azerbaijan’s Role as Host Nation

Azerbaijan’s role as COP29 host reflects the challenges faced by fossil fuel-dependent economies in transitioning to low-carbon systems. With a strong reliance on oil and gas exports, Azerbaijan has encountered questions around its climate policies and commitments. While the government has shown interest in renewable energy investments, some observers feel that domestic actions could further support climate goals. Additionally, recent limitations on independent civil society and environmental groups have led to discussions about inclusivity and transparency in the COP29 process. This context highlights the broader complexities that fossil fuel-reliant nations face in balancing economic interests with climate objectives.

Looking Ahead to COP30

The outcomes of COP29 are likely to shape the agenda for COP30 in Brazil, where biodiversity will be a major focus alongside climate action. The Brazilian conference is expected to highlight intersectional environmental issues, addressing the impacts of climate change across ecosystems and sectors.

Conclusion

COP29 in Baku brings together global stakeholders to address climate finance, carbon markets, and geoengineering. This year’s conference highlights the complexities of balancing economic needs with climate commitments, as well as the challenges and debates surrounding carbon removal technologies and biodiversity protection. With a focus on inclusivity and sustainability, COP29 aims to advance collaborative climate action on a global scale.

In our next blog, we’ll explore the 2024 State of the Climate Report by CSIRO and the Bureau of Meteorology. This report details Australia’s recent climate trends—from rising temperatures and shifting rainfall patterns to ocean health and bushfire risks—and sets the stage for a discussion on adaptation and resilience in a changing climate.

Conference Details

• Event: COP29
• Date: 11 – 22 November 2024
• Location: Baku, Azerbaijan / virtual

Resources

• COP Virtual Pavilion (OECD)
• History of the Convention (United Nations)
• Investing in a liveable planet for all (United Nations)
• UN Climate Change Conference Baku – November 2024 (United Nations)
• World Leaders Climate Action Summit at COP29 (United Nations)

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A participant in the UN Global Compact, CourtHeath seeks to raise awareness about the sustainable development goals and the principles of the Global Compact with business and government organisations in Victoria. The elimination of all forms of discrimination in respect to employment and occupation is Principle 6 of the Global Compact. The Global Compact repudiates labour discrimination internationally.

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IMAGE (detail): United Nations

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Written by Wendy Cavenett

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