Inside COP 29: Early Announcements and Key Negotiations to Watch

The 29th Conference of the Parties (COP 29) currently taking place in Baku from November 11^th to 22^nd has brought in delegates from more than 100 nations together with clear priorities – to advance countries’ climate commitment. This year’s agenda builds on previous commitments while setting new priorities that will guide climate policy. With early announcements and key negotiations underway, the summit is setting the stage for critical commitments and decisions that will shape the future of global climate action.

Related Insight: COP29 Agenda and Key Highlights

Early Announcements from COP 29

Increased Climate Finance Commitment

A major announcement early in the summit came from a coalition of major development banks, including the World Bank, which committed to increasing their climate finance efforts. The group set a collective goal to increase funding to $120 billion by 2030—representing a 60% increase compared to 2023 levels. This was seen as a significant boost to COP 29, signalling strong support for climate adaptation and mitigation in low and middle-income countries, which are the most vulnerable to climate impacts.

Loss and Damage Fund Progress

Originally set up during COP 28 held in Dubai, UAE, the Loss and Damage fund is designed to assist nations facing extreme weather events, rising sea levels and other climate-induced disasters. Early pledges to this fund are expected to come from developed nations, including contributions to help vulnerable countries recover from damage. While the fund's structure remains a focal point of debate, current pledges add up to £549.94 million.

Ambitious Emission Reduction Targets

The UK, UAE, and other nations are under pressure to revise and announce more ambitious emissions reduction targets. Several countries are expected to pledge to increase their emissions reduction ambitions for the years leading up to 2030 and 2035. Already, UK Prime Minister Keir Stamer has announced that his government plans to cut emissions by 81% by 2035, exceeding the current target of 78%.

Increased Emphasis on Climate Justice

COP 29 also saw an increased focus on climate justice, with discussions centred around ensuring that the countries and communities most affected by climate change—particularly in the Global South—receive the necessary support.

Key Negotiations to Watch at COP 29

Despite some progress on several key issues, there are still several topics in the ongoing COP that are under negotiations. This is in the face of several controversies stemming from Azerbaijan’s role as a major oil and gas producer, allegations of corruption among delegates and disagreements over climate financing. Concerns have also been raised about how the outcome of the recent US election could affect climate financing. Officials representing the outgoing administration at the conference have indicated that China and the EU may need to take on more prominent roles in climate leadership if the US reduces its involvement.

Loss and Damage Funding Mechanism

The structure of the fund and the process for channelling funds to the most affected nations remain key areas of debate. These negotiations will likely be intense as parties try to find a fair and sustainable model for distributing funds.

National Climate Pledges and NDC Updates

Another area of significant negotiation will be the updating of Nationally Determined Contributions (NDCs), the voluntary emissions targets set by individual countries following the 1.5°C Paris Agreement target.

Carbon Market Mechanisms and Emissions Trading

A breakthrough in carbon market negotiations has emerged, with nearly 200 governments supporting a UN-led global carbon market framework under Article 6.4. The implementation of the mechanisms, particularly the rules surrounding emissions trading systems, will be a significant point of contention. Some nations are pushing for stronger market mechanisms, while others call for tighter regulations to prevent loopholes.

Support for Just Transition in Fossil Fuel-Dependent Economies

The transition away from fossil fuels remains a contentious issue. COP 29 negotiators will need to balance the need for phasing out fossil fuels with the economic realities faced by nations whose economies are heavily reliant on oil and gas production. Azerbaijan’s role as a major fossil fuel producer adds complexity to these negotiations. Calls for a just transition, where workers in fossil fuel industries are supported through retraining and social safety nets, are expected to play a significant role in these talks.

Global Stock take and Monitoring Progress

Another important negotiation at COP 29 is the global stock take of the Paris Agreement, which assesses whether the world is on track to meet its climate goals. This stock take will be crucial in shaping the future trajectory of global climate policy and will influence the negotiations around NDCs, financial commitments and adaptation measures.

The Bottom Line

COP 29 is shaping up to be a critical moment in global climate diplomacy, with these early announcements setting the stage for intense negotiations in the coming days. As negotiations intensify, the world will be watching to see if COP 29 can produce the agreements necessary to accelerate global action and deliver meaningful results in the fight against climate change. The success of the summit will depend on how well negotiators balance ambitious targets with the financial and political realities of the global community.