COP29 Climate Summit 2024

Context

At the COP29 climate conference in Baku, countries made a historic decision to advance an agreement for a global carbon market under the Paris Agreement. While this step is seen as a breakthrough, climate finance remains unresolved, with developing nations stressing the need for substantial, updated funding.

What is COP?

• Conference of Parties (COP): The main decision-making body of the United Nations Framework Convention on Climate Change (UNFCCC).
• UNFCCC Background: Established in 1992, it unites 198 members (197 countries + the European Union) to combat climate change.
• Annual Meetings: Each year, COP gathers to assess emissions, track progress, and shape climate policies.

Key COP Milestones

1. Kyoto Protocol (1997, COP3):

   • Binding emission reductions for developed countries.
   • Goal: Reduce emissions by 4.2% from 1990 levels by 2012.

2. Copenhagen Accord (2009, COP15):

   • Introduced 2°C warming limit and climate funding for vulnerable nations.
   • Fell short of producing a binding treaty.

3. Paris Agreement (2015, COP21):

   • Landmark target: Limit warming to below 2°C (ideally 1.5°C).
   • Established Nationally Determined Contributions (NDCs) for each country.

4. Glasgow Pact (2021, COP26):

   • Introduced pledges to reduce coal usage and phase out fossil fuel subsidies.

5. Loss and Damage Fund (2023, COP28):

   • Created to support nations affected by climate disasters.

Criticisms of COP

• Failure to Deliver Climate Finance:

  • Despite pledging $100 billion annually by 2020, developed countries have not met this goal.
  • A 2021 UN report projects that developing countries will need $6 trillion per year through 2030 to meet climate goals.

• Insufficient Emission Reductions:

  • Although COP summits have led to emission pledges, current efforts are not enough.
  • The IEA’s COP28 report warns that existing pledges risk exceeding the 1.5°C warming threshold.

Agreement on Global Carbon Markets at COP29

• Global Carbon Market Overview:

  • Defined under Article 6 of the Paris Agreement.
  • Allows trading of carbon credits as a financial incentive for reducing emissions.

• Article 6 Mechanisms:

  1. Article 6.2: Enables two countries to trade carbon credits bilaterally.
  2. Article 6.4: Proposes a UN-managed centralised system for countries and companies to offset carbon emissions.

• Progress at COP29:

  • New operational standards for Article 6.4 were adopted, allowing the global carbon market to move forward.
  • This breakthrough sets the stage for full implementation of Article 6, which had faced years of deadlock.

• Significance of this Milestone:

  • Carbon markets were the final part of the Paris Agreement awaiting full implementation.
  • The agreement will allow countries to meet climate goals more affordably and efficiently.

Challenges Ahead at COP29

1. Lack of Consensus on Climate Finance:

   • A key issue is the New Collective Quantified Goal (NCQG), which aims to replace the unmet $100 billion target.
   • G77-plus China (over 130 developing countries) rejected the initial finance draft and demanded revisions.

2. Demands from Developing Nations:

   • Developing countries seek $1 trillion annually from 2026, with G77 calling for $1.3 trillion.
   • They insist the finance should be new, predictable, and non-debt-inducing.

India’s Role in Shaping COP29

• Finance as a Priority: India highlighted the NCQG as a priority, calling for substantial financial commitments for the Global South.
• Focus on Adaptation for Vulnerable Communities: India and G77 allies advocate stronger support for adaptation in high-risk communities.
• Commitment to Emission Goals: India’s NDC aims to reduce emissions intensity by 45% from 2005 levels and create an additional carbon sink of 2.5–3 billion tonnes by 2030.

Conclusion

• COP29 President Mukhtar Babayev stated that Article 6 could reduce global climate action costs by $250 billion annually through cross-border cooperation.
• Effective carbon markets can help countries, including India, achieve climate goals, supporting global efforts to combat climate change.