COP29: 'This new finance goal is an insurance policy for humanity'

COP29 concluded in Baku, Azerbaijan, with significant progress on climate finance and carbon markets, marking a critical moment in global climate negotiations.

In his closing speech, UN Climate Change executive secretary Simon Stiell praised the outcomes but emphasised the immense work ahead to meet the Paris Agreement targets. A key achievement was the agreement to triple climate finance, seen as an "insurance policy for humanity" in the face of escalating climate impacts".

This new finance goal will help finance real protections for those on the frontlines, especially the most vulnerable," said Stiell. He stressed that the success of this initiative depends on nations honouring their commitments fully and on time.

Another milestone was the finalisation of global carbon market standards under Article 6 of the Paris Agreement, ending nearly a decade of negotiations. While this breakthrough is hailed as a step forward, critics have raised concerns about whether carbon markets effectively reduce emissions or distract from the need to phase out fossil fuels.

The Article 6.4 Supervisory Body, responsible for creating the UN carbon market under the Paris Agreement, adopted standards for methodologies and greenhouse gas removals. Known as the Paris Agreement Crediting Mechanism, this new UN mechanism is designed to facilitate international collaboration in reducing greenhouse gas emissions and combating climate change.

Stiell highlighted the progress made in clean energy transitions, with the agreement expected to bolster the growth of renewable energy, create jobs, and enhance energy access. Yet, he acknowledged unresolved issues, including funding for climate resilience and adaptation.

"The UN Paris Agreement is humanity’s life-raft; there is nothing else," he stated, urging nations to prepare ambitious climate plans for COP30 in Belém, Brazil. Stiell warned, "We leave Baku with a mountain of work to do."

IOL