COP29 Kicks Off in Baku Amidst Global Uncertainty
The 29th Conference of the Parties (COP29) has begun in Baku, Azerbaijan, amidst a challenging time for the United Nations. The organization is facing a new round of negotiations, but governments are distracted by budgetary issues, and conflicts in Ukraine and the Middle East are clouding priorities. To make matters worse, the United States has just elected Donald Trump, who has already launched a hostile campaign against the 2015 Paris climate agreement.
This year's conference is widely regarded as a transitional affair, lacking the significance of the 2015 Paris negotiations. Nevertheless, negotiators are expected to focus on key issues that will determine how the world reduces carbon emissions and addresses the growing burden of climate disasters. Several crucial questions will be debated.
Divergences on Roles and Finances
The first issue is the "new collective quantified goal," which refers to the amount of climate aid that rich countries should provide to poor ones. This funding is intended to help developing countries transition to renewable energy and adapt to climate change. Negotiations will be tense, as donors have backtracked on their previous commitments, and a significant portion of the aid has been in the form of costly loans or of little value. A recent UN report revealed that adaptation efforts are underfunded by $180-360 billion per year.
Vulnerable countries are demanding an annual commitment of trillions of dollars. The United States and Europe have called on large economies like China and oil-rich states like Saudi Arabia to contribute to the funding, but these nations have resisted, citing the historical responsibility of developed countries for climate change. This geopolitical impasse has stalled negotiations for months, and it remains to be seen whether major emitters, aside from the United States, will increase their ambitions to fill the gap likely to be created by Trump.
Who Will Pay What?
Another hot topic at the summit is the issue of "loss and damage," where rich countries are expected to provide reparations for their role in climate change. The argument is that these countries, which industrialized early, have emitted the most greenhouse gases throughout history and should contribute more to combat climate disasters. This commitment is a long-standing demand from small island states and African developing countries. However, the devil is in the details. The new "loss and damage" fund is hosted by the World Bank, which has a troubled past with developing countries. The available funds are a mere $700 million, a tiny fraction of the total needs. The key question at COP29 is whether this fund can take off or will get bogged down in bureaucracy, failing to address the challenges it is meant to alleviate.
Carbon Market for Countries
One of the primary ways large corporations can claim progress in achieving their emission reduction goals is through the voluntary carbon market. Today, the United Nations is attempting to create its own carbon market for countries, not just corporations. The goal is to provide nations with more means to cooperate in achieving the objectives of the Paris Agreement. Last year, diplomats made no progress in developing this market, disagreeing on the types of carbon credits that should be eligible for exchange and the methodologies used to generate them. The COP29 president has promised to push the market "to the finish line," but disagreements may persist.
This summit is crucial, as the repercussions are significant. For Tunisia, it could mean substantial funding to invest in and accelerate the energy transition. We truly need this.
