.svg){kind=logo}
The 29th Conference of the Parties on Climate Change (COP29), held in Baku, Azerbaijan, in November 2024, took place against the backdrop of an increasingly visible climate crisis.
With 2024 set to become the hottest year on record, expectations were high.
In this article, you'll find a summary of the main announcements, the sticking points and our tips for contributing to the ecological transition.
Finance
Climate fund falls well short of expectations
One of the focal points of COP29 was the issue of climate financing.
The countries agreed to mobilize $300 billion a year by 2035 to support developing nations in their fight against climate change and their adaptation to the impacts already visible.
This is still well below the 1,000 billion required to meet global needs, according to the OECD.
Calling on private funding
To make up for the lack of public funding, COP29 aims to mobilize private investment. This approach reflects the difficulty for governments alone to meet the scale of the climate challenge.
Contributors unchanged since 1992
The list of contributing countries, based on the 1992 economic classification, has not been updated. This means that today's major nations, such as China and the Gulf States, are not obliged to contribute.
However, discussions have encouraged China to participate voluntarily, without any formal commitment being made.
In conclusion, developing countries are disappointed, believing the funding to be insufficient and ill-suited to their needs.
The global carbon market remains unclear
Setting up an international framework
The subject of a global carbon market is back on the table, supported by the United Nations, as part of article 6.4 of the Paris Agreement.
This market will enable countries and companies to trade carbon credits to encourage investment in low-CO₂ emission projects.
Ongoing concerns
Despite this announcement, several questions remain unanswered, including:
- System governance: who will ensure transparency and fairness?
- Methodologies for calculating carbon credits: detailed rules have yet to be defined.
All these uncertainties call into question the effectiveness and credibility of this market in the fight against global warming.
Fossil fuels update
A major geopolitical stumbling block
Discussions on the gradual reduction in the use of fossil fuels - oil, gas and coal - have come to nothing.
Deep divisions have emerged, particularly between :
- Countries rich in fossil fuels, such as Azerbaijan, fear a major economic impact.
- Nations in favor of accelerating the energy transition.
A deadline postponed to COP30
In the absence of consensus, the question of ambitions for reducing greenhouse gases has been postponed until COP30, scheduled to take place in Brazil. Countries will have to come up with more concrete commitments if they hope to make progress on this crucial issue.
What can SMEs and ETIs do?
For CSR managers, the results of COP29 should be a wake-up call. If international commitments are slow in coming, companies - including SMEs and ETIs - have a key role to play. Here are a few concrete actions:
1. Reduce dependence on fossil fuels
- Carry out a carbon audit to identify major sources of emissions.
- Invest in energy efficiency or renewable energy solutions.
2. Anticipating carbon markets
Even if there is still room for improvement, companies need to be ready to integrate the global carbon market into their strategy. This involves :
- Monitor developments in article 6.4 and explore existing mechanisms such as national or regional certificates.
- The search for local or international certified projects to offset their emissions.
3. Communicate their commitments
In a context where consumer and partner expectations are high, it is essential to :
- Publish detailed and transparent CSR reports.
- Promote sustainable initiatives to stakeholders.
Conclusion: COP29, a mixed success
COP29 saw some symbolic advances, such as the establishment of a framework for a global carbon market. But it also highlighted the widening gap between the urgency of climate change and the decisions taken at international level.
Countries, especially the major economies, will have their work cut out to present concrete, ambitious commitments at COP30. In the meantime, companies, local authorities and citizens are invited to continue their efforts to contribute to a sustainable transition, which is essential for the future of the planet.
Sources
