Both promises and setbacks cloud the COP29 Summit
COP29: The Bare Minimum is Reached Amidst Ongoing Climate Change Challenges
The 29th United Nations Climate Change Conference (COP29), held in Baku, marked a significant step forward in global climate action, but also underscored the immense challenges that remain. After months of diplomacy and two weeks of intense negotiations, a deal was reached that provides $1.3 trillion in climate financing through a mix of government pledges, private sector contributions, and multilateral institutions. While this agreement is a major milestone, it falls short of the ambitious targets many argue are necessary to address the climate crisis effectively.
Let's break down some of the key achievements as well as the failures that make up the outcomes of COP29.
Key Achievements
Boosting Climate Financing
The centerpiece of the COP29 deal is the commitment from industrialized nations to contribute $300 billion towards climate financing, tripling the $100 billion pledged at the 2015 Paris Agreement. Combined with private sector and multilateral funds, this financing is expected to support emissions reductions equivalent to removing 1 billion cars from the road, while also protecting up to 1 billion people in developing nations from climate-related disasters such as floods, heatwaves, and droughts.
This funding will also accelerate the global transition to clean energy, a shift with significant economic benefits. For nations like the UK and Canada, it offers opportunities for investment, job creation, and economic growth through clean energy exports, but that’s only if nation-specific policies line up with the need to develop infrastructure that aligns with the green energy transition.
Establishing a Global Carbon Market
After years of negotiations, COP29 finalized a framework for international carbon market trading, enabling less wealthy nations to raise climate finance by selling carbon credits. This mechanism is expected to play a critical role in funding green transitions and supporting sustainable development in the Global South. However, the Global South remains at critical disadvantages, routinely creating less carbon emissions than wealthier, Western nations while bearing much of the brunt of climate change (and weather-related) impacts.
Operationalizing the Loss and Damage Fund
A fund to address loss and damage in vulnerable countries, operationalized just before COP29, is already receiving contributions. This initiative recognizes the disproportionate burden faced by developing nations and small island states, providing resources to help them recover from the impacts of climate change.
Challenges and Critiques
Despite these achievements, COP29 highlighted ongoing divisions. Many developing nations criticized the $300 billion pledge from industrialized nations as insufficient, falling far short of the $1 trillion annual financing widely considered necessary to address the climate crisis effectively. Countries in the Global South, particularly small island states, viewed the late-stage unveiling of financial proposals as a frustrating lack of transparency. While the final deal represents progress, it left many stakeholders feeling it was more a compromise than a solution.
Moreover, while finance dominated the agenda, critical discussions on phasing out fossil fuels and ensuring the global temperature rise remains below 1.5°C saw limited progress. There is still significant resistance to phasing out fossil fuels, even though a significant portion of climate change is induced by major fossil fuel-creating companies. As The Guardian reports, just 57 companies linked to 80% of greenhouse gas emissions since 2016.
The Road Ahead
While COP29 delivered incremental progress, the urgency of the climate crisis demands far more. The $1.3 trillion financing roadmap is a step forward, but the over-reliance on private sector contributions introduces uncertainty. The establishment of a global carbon market and activation of the Loss and Damage Fund are meaningful developments, yet the broader systemic shifts required—particularly in energy systems and fossil fuel dependency—remain elusive.
As Brazil prepares to host COP30 in Belém, the focus will likely shift to closing the financing gaps and strengthening commitments to decarbonization. But this also requires a bolder, more unified global response.
COP29 reflected both the promise and limitations of multilateral climate diplomacy. It secured a deal that will provide critical support to vulnerable nations and drive forward the clean energy transition. However, the slow pace of progress on fundamental issues highlights the urgency of continued advocacy and leadership. Moreover, COP30 needs to delve into the real strategic frameworks that will help global communities transition into more sustainable and green alternatives, decreasing emissions and outpacing the global warming temperature.
About the Author:
Madeline Medensky
Madeline Medensky is a content writer and editor based in Canada. She was recently the Public Relations Specialist for the University of Waterloo's Hub for Sustainability Integration where she reported on sustainability implementation for business development and economic change. Madeline's content expertise extends to other positions and opportunities in the tech sector. In her spare time, she exercises her storytelling abilities by writing and consuming creative fiction. You can read more of her content here: https://medium.com/@maddiemedensky
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