1. New Climate Finance Goal
A new climate finance goal was set, aiming to channel at least $300 billion annually by 2035 from wealthier countries to developing nations. This replaced the $100 billion per year target set in 2009. Although the deal marked progress, developing countries were dissatisfied with the figure, which fell far short of the $1.3 trillion they had demanded. The deal also proposed a broader target of $1.3 trillion by 2035, including both government and private funding, but the mechanisms to reach this target remain unclear. A new roadmap, the "Baku to Belem Roadmap," will explore ways to mobilize this broader funding, including redirecting fossil fuel subsidies, but it was criticized as vague.
2. Controversial Carbon Market Rules
A major breakthrough was made on carbon markets, with countries agreeing on a set of rules for the global carbon market under the Paris Agreement's Article 6. This includes bilateral emissions trading (Article 6.2) and an international carbon market (Article 6.4). While hailed as a significant step, concerns were raised about the quality of carbon credits, with fears that weak transparency rules could undermine the effectiveness of the market in reducing emissions.
3. Emissions Reduction Efforts
There was no consensus on how to advance the "UAE Dialogue," which was meant to develop strategies for implementing the findings of the global stocktake (GST) conducted at COP28. A contentious issue was the role of fossil fuels in the transition to clean energy. Saudi Arabia opposed referencing fossil fuels in the text, leading to a weakened outcome that emphasized "transitional fuels" (including fossil gas). This stymied progress on setting more ambitious emissions targets for the 2025 review of national climate plans (NDCs).
4. Just Transition and Adaptation
Negotiations on the Just Transition Work Programme (JTWP), aimed at supporting workers and communities transitioning away from fossil fuels, failed to yield an agreement. The issue of finance for just transition plans was a key sticking point. Similarly, the Global Goal on Adaptation (GGA) made limited progress due to disagreements on financing and implementation measures. The Baku Adaptation Road Map was launched to keep the discussions moving forward, but the lack of substantial progress means adaptation goals are still behind schedule.
5. Gender and Climate
The Lima Work Programme (LWP), which focuses on gender-responsive climate policies, was renewed for another 10 years. However, some countries, including Saudi Arabia and Egypt, succeeded in removing certain human rights-related language from the agreement. Despite this, the plan will continue to support gender-responsive actions, including creating jobs for women aligned with national climate plans and ensuring better access to finance for grassroots women's groups.
6. Failure on Energy Transition and Emission Reduction Targets
Several critical energy transition targets, such as increasing energy storage capacity and expanding power grids, were not adopted due to disagreements over the role of fossil fuels and the lack of consensus on the UAE Dialogue. The Mitigation Work Programme (MWP), which was supposed to enhance emissions reduction efforts, also saw weak commitments, with no mention of fossil fuels or deforestation pledges.
7. Carbon Markets and Emissions Trading
One of the few notable successes was the agreement on carbon markets, as countries reached a consensus on how to trade carbon credits internationally. This will help operationalize emissions trading under the Paris Agreement. However, experts warned that the new rules might not ensure significant emissions reductions, as less immediate transparency on trades could delay efforts to monitor and verify climate impact.
8. Looking Ahead
The summit ended with the expectation that the issues left unresolved at COP29, including the financing goals, emissions reduction strategies, and just transition plans, would be revisited at COP30 in Brazil in 2025. There were also calls for more decisive action to close the gap between the climate finance needed and what has been promised. The climate crisis remains urgent, and the slow pace of progress at COP29 highlighted the challenges of reaching meaningful agreements in an increasingly polarized global political landscape.