By Alejandro Pagés*
Climate change is an undeniable reality that affects every corner of the planet; The average global temperature has already risen 1.54°C above pre-industrial levels, and 2024 is on track to be the hottest year on record, increasing the frequency and intensity of extreme weather events such as droughts, floods, wildfires and waves. of heat, while Arctic and Antarctic sea ice is at historic lows.
Faced with this critical situation, this year’s United Nations Climate Change Conference (COP29), held in Baku, Azerbaijan, had as its main objective to promote global climate action and mobilize the necessary financial resources so that developing nations can face the challenges that this poses.
Despite moderate expectations, COP29 made progress on climate finance and the finalization of Article 6 on carbon markets and the consolidation of the participation of non-state actors; However, it also highlighted the need for greater ambition and commitment on the part of all countries to achieve the goals established in the Paris Agreement.
Specifically, the climate finance goal proposes that, by 2035, developed nations channel at least $300 billion a year to developing countries. Although this figure is lower than the demand (1.3 trillion dollars annually), it represents progress in the mobilization of resources for climate action. Likewise, in a last-minute agreement it was possible to include the Hoja route from Bakú to Belém,(1) to expand climate financing and reach the amount demanded by the aforementioned date.
On the other hand, the finalization of the remaining sections of Article 6 will allow the creation of a global carbon market that could incentivize emissions reductions, as well as investment in mitigation projects, supported by provisions to improve transparency and accountability. .
COP29 also highlighted the importance of the participation of non-state actors in climate action. Various organizations, companies, investors and civil society groups presented multiple initiatives and commitments to reduce emissions, increase resilience and promote adaptation to climate change, giving strong encouragement to actions for the planet.
In this sense, sectoral ambitions for climate adaptation and resilience were defined, among which the following stand out:
- Energy: initiatives were announced to triple renewable energy capacity and double the rate of energy efficiency improvements by 2030; Opportunities for responsible offshore wind, energy storage, smart grids, green hydrogen and sustainable hydropower were also highlighted.
- Transport: the initiative was presented Avoid and Shift Breakthrough to double the proportion of fossil fuel-free land transport of people and goods by 2030, focusing on public transport, electric vehicles and railways
- Real estate: Emphasis was placed on the decarbonization and climate resilience required in construction, including energy efficiency, the circular economy and the reduction of emissions in cooling systems.
- Industrial: initiatives were launched for green purchasing of commodities, low-carbon definitions for cement and concrete, and the decarbonization of energy-intensive industries
- Agriculture: was presented Baku Harmoniya Climate Initiative for Farmersin order to share experiences, facilitate financing and promote collaboration in the adaptation and mitigation of climate change in the sector
- Agua: A call to action was made to achieve sustainable water management, urban water resilience and the integration of mitigation and adaptation measures related to this resource in national climate policies
- Oceans: the project was launched Baku Innovation for the Blue Economy, which promotes innovative and sustainable solutions for the management of marine and coastal resources
- Communities: The importance of community resilience and ecosystem-based adaptation was highlighted, as well as the inclusion of local communities in the planning and implementation of adaptation measures.
It is worth mentioning that, despite these advances, the summit was marked by persistent divisions and a lack of consensus on key issues, so there are still significant challenges to achieving the goals of the Paris Agreement. Thus, some obstacles to overcome and that must be addressed urgently are the phasing out of fossil fuels, insufficient climate financing and the postponement of the dialogue on the implementation of the “global balance”.
In summary, COP29 marked a milestone in global climate action, but it also highlighted the need for greater ambition and commitment on the part of countries to move towards climate change. net zero. International cooperation, the mobilization of financial resources, technological innovation and the participation of all sectors of society are essential to achieve a sustainable and resilient future, while COP30 taking place next year in Brazil will present the opportunity to evaluate progress and strengthen ambitions.
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*Alejandro Pagés is Director of Sustainability, ESG and Circular Economy Consulting at KPMG México
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(1) COP29 agrees to triple funding to developing countries, protecting lives and livelihoodsUnited Nations Climate Change, 2024.
