The 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) has kicked off in Baku, Azerbaijan, with a dire warning from UN climate chief Simon Stiell. Stiell highlighted that a new global climate finance goal, while crucial, won’t be sufficient to tackle the looming climate crisis. He emphasized the critical need for a significant overhaul of the global financial system to empower developing nations in their transition to a greener future.
“We must agree on a new global climate finance goal. If at least two-thirds of the world’s nations cannot afford to cut emissions quickly, then every nation pays a brutal price,” Stiell declared in his opening remarks. He further underscored the interconnectedness of the global economy, stating that “If nations can’t build resilience into supply chains, the entire global economy will be brought to its knees. No country is immune.”
The COP29 summit, set to conclude on November 22, aims to replace the $100 billion annual climate fund pledge made by developed nations with a new, ambitious “New Collective Quantified Goal” (NCQG). “An ambitious new climate finance goal is entirely in the self-interest of every nation, including the largest and wealthiest, but it’s not enough to just agree on a goal. We must work harder to reform the global financial system,” Stiell asserted.
The urgency of the situation cannot be overstated. The year 2024 is on track to become one of the hottest on record, following the record-breaking warmth of 2023. In June, the World Meteorological Organization warned that there is an 80% likelihood that the annual average global temperature will exceed 1.5°C above pre-industrial levels in at least one of the next five years, a threshold scientists have repeatedly cautioned will trigger far more severe climate change impacts and extreme weather events.
The world has already witnessed a surge in climate-related disasters, including heatwaves, hurricanes, droughts, wildfires, and floods, the latest being the devastating floods in Spain. Scientists warn that these events are bound to intensify in a warming world, escalating the risks of food shortages, disease, and economic upheaval.
The UN Emission Gaps report paints a grim picture, revealing that the planet is on course for a temperature rise of 2.6-2.8°C above pre-industrial levels, potentially even reaching 3.1°C. Such a scenario would have catastrophic consequences for people and economies worldwide. Greenhouse gas emissions continue to climb, increasing by 1.3% year-on-year in 2023 to a staggering 57.1 gigatons of carbon dioxide equivalent. To cap temperature increase at 1.5°C, emissions must be slashed by 42% from 2019 levels by 2030, while limiting warming to below 2°C requires a 28% reduction by the same deadline.
The economic implications of inaction are equally alarming. A study published in Nature Climate Change projects that a 3°C warmer world will lead to a 10% loss in global GDP, with India potentially losing 5.8% of working hours due to heat, equivalent to 34 million jobs by 2030.
Stiell stressed the need for immediate action, warning that “We mustn’t let 1.5°C slip out of reach.” He emphasized that “the shift to clean energy and climate resilience will not be stopped. Our job is to accelerate this and make sure its huge benefits are shared by all countries and all people.” Investment in clean energy and infrastructure is projected to reach $2 trillion in 2024, almost double the investment in fossil fuels.
COP29 is anticipated to result in a climate finance deal to assist nations in transitioning to clean energy and other low-carbon solutions. A colossal $2.4 trillion annually—four times the current investment—is required for developing economies to reduce greenhouse gas emissions. Countries will also present their third generation of climate action commitments, or nationally determined contributions (NDCs), which serve as the foundation for global efforts to address climate change. Both climate finance and NDCs are paramount to limiting global warming to 1.5°C.
Stiell emphasized the need to have international carbon markets operational by finalizing Article 6 of the Paris Agreement. Article 6 proposes a mechanism allowing countries to transfer carbon credits earned from reducing greenhouse gas emissions to help other nations meet their climate targets. The UNFCCC will launch a Climate Plan Campaign to support countries in creating and communicating their NDCs. “In parallel, we will re-start Climate Weeks from 2025, aligning them more closely with our process and the outcomes it must deliver,” Stiell concluded.
The message from COP29 is clear: bold action is required to avert the worst consequences of climate change. The world is watching to see if nations will rise to the challenge and deliver the urgent and transformative change needed to secure a sustainable future for all.
