COP29: Global unity needed to solve climate finance crisis

Prof Dr. Ahmad Kamruzzaman Majumder

The COP29 conference was held in Baku, Azerbaijan, on November 11, 2024, to increase international cooperation to combat global climate change. The most important of the discussions at COP29 was the joint efforts to reduce the world’s greenhouse gas emissions. As a result of the conference, a 40 percent target was set for reducing global greenhouse gas emissions by the end of 2024, which is in line with the goals of the Paris Agreement. Of particular note was a new agreement among the United States, China, and the European Union, through which they pledged to reduce their emissions by 50 percent by 2030. In addition, the conference called for the UN to take special measures to prevent a temperature increase of 1.5 degrees Celsius, which is an important step against global warming.

But many developing countries have expressed frustration at the lack of progress in the first week of the COP29 summit. Negotiators at the COP29 conference say countries need to overcome their differences to reach an effective deal on climate finance. German Development Secretary Jochen Flasbarth warned that if the talks drag on, political developments in the coming year could further limit the chances of a deal. In particular, the possible return of the Trump administration could be a cause for concern for global climate action. Despite the political crisis in Germany, experts believe that the next government will keep and increase its climate finance commitments and that no government will budge on this issue.

Developing countries are demanding at least $1 trillion in aid each year to help them reduce greenhouse gas emissions and combat the effects of extreme weather. But rich countries have yet to make adequate commitments to meet these demands. Economists say a large portion of this funding, about $500 billion from the private sector and $250 billion from multilateral development banks, should come from the private sector. But the active participation of rich countries is essential to achieve this goal. Emerging economies, especially China, have pledged to provide aid to poor countries. But Flasbarth criticized the lack of transparency in this aid. The G77 and China have long demanded that developed countries be transparent about their financing. They have requested detailed information on the amount of grants and loans, the use of the money, and its impact on adaptation efforts. Flasbarth noted that these demands are not unreasonable. Just as developing countries demand transparency from rich countries, China should be held to the same standard.

Azerbaijan’s fossil fuel-dependent economy and the influence of the oil and gas sector have been a major obstacle to the COP29 talks. The presence and privileges of fossil fuel lobbyists at the conference have been a source of controversy. 480 lobbyists working on carbon capture and storage (CCS) technology have been granted access to COP29. This is five more than last year, although the overall number of participants at the conference has fallen from 85,000 to 70,000. Almost half of the lobbyists have been granted access as members of national delegations, allowing them to directly participate in the discussions. This has led to allegations that developing countries are being discriminated against. Environmentalists have criticized CCS as a “false solution” because the technology has long been supported by the oil and gas industry. It allows companies to continue selling fossil fuels and maintain their business models. However, the technology has not yet been implemented on a large scale and has failed to reduce the local damage caused by fossil fuel use. It has mostly been used for oil recovery, which causes even more carbon emissions. Its transportation and storage on a large scale is considered risky and a waste of money and time. This year’s conference approved rules for using carbon markets, which could increase reliance on CCS. Experts worry that lobbyists are pushing policymakers to enact rules that will create additional funding for CCS technology.

However, the UK is showing global leadership beyond its national interests. Prime Minister Keir Starmer has reaffirmed his commitment to £11.6 billion in funding, which has been widely praised. Miliband noted that it is in the UK’s interest to help poor countries, as it will help limit global warming to 1.5 degrees Celsius. Failure to do so will increase global instability due to the effects of climate change.

The last days of COP29 are crucial. If no effective agreement is reached at the conference, the prospects for tackling climate change in the future will become even more difficult. The active presence of lobbyists at the conference is questioning the influence of the fossil fuel industry and its efforts to protect the future. Environmentalists believe that this technology is strengthening fossil fuels rather than moving away from them, which could become a major obstacle to solving the global climate crisis. In that case, the rise of renewable energy and increasing financial support for poor countries can play a leading role as the key to tackling the climate crisis. Therefore, developed countries must spontaneously increase investment in renewable energy production and provide financial support to countries affected by climate change through grants. Failure to provide climate support will otherwise have dire consequences for future generations. I hope that countries will unite and find effective solutions to prevent climate change and provide climate finance to those affected. The success of this conference will not only address the current crisis, but also determine the direction of future climate policy.

(The writer is Dean, Faculty of Science; Professor, Department of Environmental Science, Stamford University Bangladesh).