COP29 Venue:
Held in Baku, Azerbaijan, on COP29: 13 November 2024.
Carbon Markets:
- Carbon credits: Earned by entities emitting less than their targets; can be traded for money.
- Objective: Accelerate emissions reduction through monetary incentives.
- Operationalisation marks progress under the Paris Agreement (2015).
Progress on Carbon Markets
- Nations approved new standards and rules for carbon markets, pending for two years.
- Carbon markets allow trading of carbon credits to incentivize emission reductions.
- This marks partial progress towards operationalizing the Paris Agreement’s carbon market mechanisms.
Finance Negotiations
- Developing countries, represented by the G77-plus China group, rejected an initial finance draft proposal, asking for revisions.
- Developing nations demand at least $1.3 trillion annually from developed countries for climate action, starting in 2026.
- This funding must be new, predictable, adequate, grant-based, and not induce debt.
- Demands include covering arrears for the unmet $100 billion annual commitment from developed countries.
Challenges
- Persistent differences between developed and developing nations on climate finance dampen progress.
- The comprehensive finance package (NCQG) remains a critical element, with fears of a modest outcome.
Statements by India and UN Officials
- India emphasized balancing discussions between mitigation and adaptation, addressing the needs of vulnerable communities.
- Simon Steil of UN Climate Change highlighted the importance of carbon markets in reducing emissions efficiently but acknowledged a long road ahead
