Cop29 Summit and the Importance of Climate Finance

The success of Cop29, scheduled for November in Baku, hinges on the determination and actions taken in the coming months. Specifically, its focus on climate finance makes it a critical milestone, with potential benefits for vulnerable communities in developing countries.

A recurring challenge highlighted by government negotiators from the Global North is the dependence of financial ambition on parliamentary approval. Despite numerous negotiations emphasising this limitation, developed countries stress their inability to scale up funds without parliamentary backing.

As parliamentary debates on budgets and allocations commence early in the year, the need for proactive measures becomes evident. The recently concluded Cop28 claimed success, introducing a new fund for loss and damage, a global goal for adaptation, and initial steps toward transitioning away from fossil fuels. However, the fulfilment of commitments made in Cop28 and previous summits rests on the availability, scaling up, and accessibility of climate finance.

The significance of Cop29 lies in its role in setting a new post-2025 finance goal in Baku. This decision will impact previous agreements on emission reduction ambition, climate change adaptation, loss and damage mitigation, and technology transfer.

The widening climate finance gap underscores the urgency for increased and accessible funding. The lack of such funding, particularly for the least developed countries over many decades, poses a significant obstacle to implementing plans for climate change adaptation and emission reduction.

Without additional grant-based funding, the realisation of green and sustainable growth, as well as efforts to address climate-related loss and damage, remains elusive. The Cop29 decision on climate finance is therefore crucial, necessitating agreement on scaled-up funding, timeframes, tracking and accounting measures, and the allocation of funds.

Various methods can be employed to achieve scaled-up funding, with some parties advocating for “innovative finance.” While this avenue is worth exploring, it should complement, not replace, commitments by the Global North based on historical responsibility and capability. The Cop29 negotiations become pivotal, and the hope is that governments from the Global North will enter with strong parliamentary mandates, particularly on scaled-up climate finance, to facilitate meaningful discussions.

The core message underscores the indispensable role of finance in addressing the climate crisis, emphasising that without financial commitments, effective action remains unattainable.