COP29 Outcomes

As COP29 approaches in Baku, Azerbaijan, policy makers, investors and the business community are all looking forward to the negotiations’ outcomes. It is hoped that COP29 will foster meaningful dialogue between developed and developing countries, leading to substantial financial commitments and increased adoption of innovative funding mechanisms.

This year’s Climate COP doesn’t come without its challenges. One major concern is Azerbaijan's reliance on fossil fuels and its limited experience in leading climate initiatives, which raises doubts about its ability to effectively steer the negotiations. The limited presence of a strong civil society and the centralised political environment in Azerbaijan might pose challenges to ensuring fully transparent and inclusive discussions, which are essential for effective climate action. There are however reasons for optimism, with Azerbaijan’s government taking its role in the upcoming Presidency very seriously, putting a lot of resource behind the climate negotiations, and drawing on its experience from its chairmanship of the Non-Aligned Movement (NAM) from 2019 to 2023 when the country effectively led the movement through the challenging period of the COVID-19 pandemic.

One of the most anticipated results from COP29 is the establishment of more ambitious climate targets and clear, binding agreements that go beyond pledges and translate into concrete actions. This includes detailed roadmaps for reducing greenhouse gas emissions, transitioning to renewable energy sources, and implementing sustainable practices across various sectors.

Another significant outcome being predicted is the advancement of Climate Finance, particularly for developing nations. Perhaps the main issue to agree at COP29 is the new collective quantified goal (NCQG) on climate finance, which aims to establish a more ambitious and comprehensive financial target for supporting climate action, starting from a baseline of $100 billion per year. This goal is critical as it addresses the urgent need for increased and predictable funding to help developing countries mitigate and adapt to climate change impacts. Agreeing on the NCQG this year is essential to build trust among nations, ensure the availability of necessary resources, and drive the implementation of more ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement. Without this agreement, the global community risks falling short of the financial support needed to meet climate goals and protect vulnerable populations.

COP29 also has great potential to promote greater inclusivity and representation in climate governance. There is a strong push from Azerbaijan’s government for the inclusion of marginalised groups, such as indigenous communities, women, and youth, in the decision-making processes. For example, Azerbaijan in collaboration with the Commonwealth is championing a project to provide financial and technical support to Small Island Developing States (SIDS) to enhance their resilience and adaptive capacity to climate change. By ensuring that the most marginalised voices are heard and their perspectives are incorporated, COP29 could pave the way for more equitable and effective climate solutions.

To help BEI members unpack COP29’s outcomes, our speakers will discuss their experiences at COP29, their main takeaways, and their hopes for the future.