The COP29 (UN Climate Conference) took place in 2024 in Baku, Azerbaijan, and went down in history as a summit where crucial decisions were made for global climate protection. The conference aimed to accelerate progress toward achieving the Paris Climate Goals and to bring together governments, the private sector, and civil society. But do these decisions truly mark a turning point in climate protection?
Financing and Support Mechanisms
The most outstanding outcome of COP29 was the commitment of industrialized countries to provide $100 billion annually in climate finance for developing countries. These funds are intended to support projects for climate change adaptation and the reduction of greenhouse gas emissions.
Key Points:
- Fund for Vulnerable Countries: A “Fund for Vulnerable Countries” was established, specifically designed to support island nations and developing countries most affected by climate change. The fund will finance infrastructure reconstruction, increased agricultural productivity, and disaster recovery.
- Promotion of Green Energy Projects: Developing countries will gain access to grants and low-interest loans for green energy projects, particularly in solar, wind, and hydropower sectors.
- Technology Transfer: Mechanisms have been created to facilitate technology transfer, enabling developing countries to access modern, energy-efficient technologies.
Clear Messages on Fossil Fuels
For the first time, all participants agreed to advance the gradual phase-out of fossil fuels such as coal, oil, and gas. Countries committed to reducing coal consumption by 50% by 2030.
Key Decisions:
- End of Financing for New Coal Power Plants: Starting in 2025, funding for new coal power plant projects will be discontinued to encourage investments in clean energy.
- Reduction of Subsidies: Fossil fuel subsidies will be gradually phased out to promote competition in energy markets and boost investments in renewable energies.
- International Cooperation: Accelerating investments in renewable energies will be supported through international cooperation and financial incentives.
Carbon Markets and Emissions Trading System (ETS)
COP29 adopted new regulations to enhance the effectiveness of carbon markets and strengthen their transparency and accountability.
Core Points:
- Clear Rules for International Trading of Emission Certificates: Companies can now trade emission credits more reliably and transparently.
- Emission Reporting: Companies must systematically record and report their Scope 1, Scope 2, and Scope 3 emissions.
- Expansion of Carbon Pricing: A broader introduction of carbon pricing aims to reward companies that reduce their CO2 emissions.
Implementation and Monitoring Mechanism
To ensure that COP29 commitments are effectively implemented, a monitoring and reporting system was introduced. Each country must document its climate protection measures and emission reductions annually.
Reporting Obligations:
- Regular Updates of National Climate Targets: Every five years, countries must review and establish new climate plans.
- Digital Reporting: Digital systems enable real-time monitoring and validation of emission data.
- Assessment of Socioeconomic Impacts: The economic, social, and employment-related effects of climate protection measures will be analyzed.
Impact of COP29: Sufficient Progress?
Although COP29 is seen as a significant step forward in global climate protection, there is also criticism. Some experts doubt the timely implementation of the promises, particularly the provision of financial resources for developing countries. Additionally, environmental groups criticize the phrasing of a “gradual phase-out” of fossil fuels as insufficient.
Conclusion
COP29 has given new momentum to global climate protection, but success will depend on how consistently the resolutions are implemented. For businesses and institutions, reducing emissions, reporting, and compliance with emission regulations are becoming increasingly important. Particularly crucial is the timely provision of financial and technological support for developing countries.
As CO2 Manager, we will continue to monitor this process closely and keep you updated with the latest information.
Sources:
- UNFCCC – COP29 Press Releases and Official Statements
- IPCC – Reports on Emission Reduction Targets
- Climate Action Tracker – Analysis of Countries’ Climate Commitments
