Today, the Azerbaijani COP29 Presidency announced the Baku Finance Goal agreement, a new commitment to provide $1.3 trillion in climate finance annually to developing countries, APA reports.
The success of the COP29 Presidency’s key priority for the UN Climate Summit represents a significant increase from the previous $100 billion climate finance target and will trigger a new wave of global investment.
The Baku Finance Goal includes a key target for developed countries to lead in mobilizing at least $300 billion annually for developing countries by 2035. This is the result of 48 hours of intensive diplomatic activity by the COP29 Presidency. It pays special attention to supporting least developed countries and small island developing states. The document also includes provisions on accessibility and transparency.
In addition, COP29 ended a decade-long wait for the conclusion of the Article 6 negotiations on highly integrated carbon markets within the UN. Financial flows from relevant carbon markets could reach US$1 trillion per year by 2050. They also have the potential to reduce the cost of implementing national climate plans by US$250 billion per year. Together, the Baku Finance Goal and Article 6 will forever change the architecture of global climate finance by redirecting investment to the developing world.
The Baku Finance Goal is a central part of a package of agreements that will ensure progress on all climate steps. COP29 also succeeded in ensuring that there was no setback in the outcomes of the first Global Review, and in making the Loss and Damage Fund operational and ready to disburse its funds in 2025.
These advances are the result of months of intensive diplomacy by the Azerbaijan Chairmanship to address some of the most complex and contentious challenges in multilateral climate action. These decisions are particularly important steps in providing the means to achieve the 1.5C goal.
“When the whole world came to Baku, many people doubted that Azerbaijan could achieve this. They doubted that the parties could agree. They were wrong on both counts.
With this achievement, the Baku Financial Goal will turn billions into trillions over the next decade. We have secured a tripling of the core annual climate finance target for developing countries. The Baku Financial Goal is the best deal we can get, and we have lobbied donor countries to do so to the maximum. We have changed the global financial architecture forever and taken a significant step towards delivering all the tools to achieve 1.5C,” said COP29 President Mukhtar Babayev.
The years ahead will not be easy. Science shows that the challenges will increase. Our ability to work together will be tested. The ‘Baku breakthrough’ will help us weather the storms ahead.”
The successful agreement on the Baku Financial Goal is part of the achievements of the COP29 Presidency, as outlined in the Annex.
In parallel with the presentation of a balanced package of negotiated priorities, the COP29 Presidency Action Agenda has called on a broader range of stakeholders to contribute to global climate action.
The Action Agenda Initiatives address some of the most pressing challenges, shed light on neglected priorities, offer unique solutions based on host country experience and perspective, and strengthen coherence and COP-to-COP sustainability. These Initiatives have been developed in an inclusive and transparent manner, in consultation with all stakeholders. They complement existing initiatives and bring new, creative approaches to climate challenges.
Together, these Initiatives will support the implementation of ambitious climate action.
COP29 Baku Initiative on Climate Finance, Investment and Trade (BICFIT): The COP29 Presidency brought together UN agencies, international organizations, multilateral development banks, multilateral climate funds, the private sector, civil society, major coalitions and other stakeholders, as well as COP Presidencies and Parties, to ensure that finance, investment and trade remain at the heart of the climate agenda. It announced the new Baku Climate Coalition on the green transition of small and medium-sized enterprises.
Energy commitments and statements: The COP29 Presidency presented commitments and statements on energy storage, networks, zones, corridors and hydrogen, which were endorsed by 150 Parties.
COP29 Green Digital Action Statement: Over 75 governments and over 1,100 members from the digital technology industry endorsed a statement using digital tools to reduce emissions and strengthen climate resilience.
Baku Initiative on Human Development for Climate Resilience: A joint statement was adopted by 8 UN agencies, 3 multilateral development banks and 3 climate funds. The statement adopted the Baku Guiding Principles on Human Development for Climate Resilience and established the Baku COP Presidencies Coalition on Climate and Health Resilience.
Climate and Health Resilience Coalition: The five COP Presidencies (COP26 to COP30) and the WHO Director-General promoted health as a key element of the climate agenda and future COP conferences.
Declaration on Methane Reduction from Organic Waste: More than 50 countries, accounting for 51% of the world’s methane emissions from organic waste, including 8 of the top 10 methane emitters from organic waste, endorsed this declaration, including sectoral targets, which will contribute to the implementation of the Global Methane Pledge.
Baku Harmony Climate Initiative for Farmers: A platform that brings together the fragmented landscape of existing climate initiatives in the food and agriculture sector, aiming to make support more accessible and facilitate access to finance for farmers.
COP29 Declaration on Multisectoral Action Pathways for Sustainable and Healthy Cities: Brings together over 40 Parties and over 160 countries, including UN agencies and Intergovernmental Organizations, multilateral development banks (MDBs), MCFs, philanthropic organizations and bilateral donors, for partnerships and collaboration on urban climate finance, to develop a multisectoral approach to climate action and planning in urban areas. The Baku Sustainability Coalition for Urban, Multisectoral and Multilevel Climate Action was established between the COP, UNFCCC and UN-Habitat urban processes.
COP29 Baku Declaration on Improved Climate Action in the Tourism Sector: Over 60 governments committed to promoting sustainable tourism practices by reducing emissions and increasing resilience in the tourism sector.
COP29 Declaration for Climate Action: This declaration, supported by 50 countries, presents an integrated approach to addressing the impacts of climate change on watersheds and water-related ecosystems. It promotes the integration of water-related mitigation and adaptation measures into national climate policies, including NDCs and NAPs.
Significant progress has been made in the two-week period
In addition to its Action Agenda initiatives, the COP29 Presidency has made progress on several priority areas for ambitious climate action. This has included a range of areas, including improving transparency and securing funding for the Loss and Damage Fund. In addition to the initiatives taken by the Presidency, Parties and other stakeholders have shown leadership through their commitments.
The COP29 Presidency launched the Baku Transparency Platform, with a particular focus on the importance of transparency and Biennial Transparency Reports (BTRs), and called on Parties to submit reports early, resulting in 11 Parties and the European Union submitting their submissions before 31 December. As an example, the Presidency has also submitted its BTR.
Parties have continued to make progress towards the activation of Article 6, which will direct resources to developing countries and reduce the costs of implementing national climate plans. They agreed on standards for reliable and transparent carbon markets under Article 6.4 and concluded negotiations on Article 6.8, which facilitates international cooperation on non-market approaches to implement national climate plans and promote sustainable development.
At the World Leaders’ Climate Action Summit, 80 heads of state and government and vice presidents announced their commitment to advancing the Paris Agreement and climate action, underlining the need to increase ambition on mitigation and adaptation.
Multilateral Development Banks (MDBs) announced a commitment to contribute USD 170 billion annually to climate action by 2030, of which USD 120 billion would go to low- and middle-income countries.
The Loss and Damage Fund has been secured, with commitments and agreements from contributing parties ensuring that it is ready to disburse funds by 2025, as well as the signing of a host country agreement with the Philippines and host and trusteeship agreements with the World Bank. The largest contributors to COP29 came from Australia and Sweden. Total contributions to the Fund to date have exceeded US$730 million.
Countries including the US, China, the EU, the UAE, the UK, Brazil, Canada and Nigeria have come together and announced policies aimed at reducing methane from organic waste.
The conference also included the participation of Small Island Developing States (SIDS), providing them with an opportunity to raise their key priorities and concerns, such as access to climate finance.
The Business Investment and Philanthropy Climate Platform (BIPCP) brought together over 1,000 private and philanthropic leaders from over 70 countries. There, investor groups with over $10 trillion in assets came together to deploy private capital in climate markets.
Pledges for climate finance projects and initiatives on Finance, Investment and Trade Day totaled $7.3 billion. The largest contributions came from the Asian Development Bank ($3.5 billion), the Azerbaijani banking sector ($1.2 billion), Sweden ($760 million) and Canada ($1.5 billion from the Canadian government and $290 million from philanthropy). These funds are investments in glaciers, green taxonomies and climate action.
Development finance institutions have pledged to support the 10 Gigawatt Lighthouse Initiative for renewable hydrogen projects in emerging markets and developing countries.
More than 50 shipping industry players have agreed to accelerate the deployment of zero and near-zero emission fuels by 2030, representing at least 5 million tonnes of green hydrogen.
As part of a $193 million package for a range of clean energy initiatives, the UK is supporting clean cooking for 10 million people in sub-Saharan Africa, South Asia and the Indo-Pacific to replace cooking with charcoal and wood.
Cooperation and peace are integral to global climate action – COP Ceasefire Call supported by 132 countries and over 1,200 organisations, and the Baku Climate Action Call for Peace, Relief and Recovery adopted. This initiative will establish the Baku Climate and Peace Action Center to address the urgent links between climate change, conflict, and humanitarian needs.
Germany’s contribution of USD 65.1 million and Ireland’s contribution of USD 13 million brought the total contribution to the Adaptation Fund to USD 133 million.
The Climate Investment Fund was further increased, with additional contributions from the United States ($325 million), Germany ($220 million) and the United Kingdom ($211 million).
25 countries and the European Union announced their intention to submit national climate plans to completely phase out new open coal in their energy systems and called on others to do the same.
Mexico announced its commitment to net-zero emissions by 2050. All G20 members have thus committed to the net-zero target.
Local Communities and Indigenous Peoples: The Baku Action Plan of the Local Communities and Indigenous Peoples Platform was launched.
UK government pledges £239 million ($299 million): The UK government has pledged $299 million to support the development of forestry and forest carbon markets, blended finance for sustainable forest enterprises, and UNFCCC support to help countries protect forests.
