COP29: Climate Finance and Carbon Market Deals for a Sustainable Future

COP29 discussions emphasized finance and carbon markets, potentially channeling billions into businesses. Countries must submit detailed climate plans to the UN for COP30. A $300 billion annual finance deal by 2035 was reached, but concerns persist over national commitments and carbon market rules.

COP29 discussions have paved the way for significant financial commitments in the arena of climate finance and carbon markets, potentially funneling billions into the business sector. However, the success of these efforts heavily relies on countries submitting robust and detailed climate plans to the UN ahead of the COP30 summit.

The recent negotiations, held in Azerbaijan, culminated in a $300 billion-a-year climate finance pledge by 2035. This figure, however, has been met with skepticism by many developing nations, who argue it is insufficient for robust national climate plans. Private sector investment was also spotlighted, with a commitment from multilateral development banks to mobilize $65 billion annually, though specific details remain under scrutiny.

Amid these talks, challenges persist, as highlighted by the influence of fossil fuel lobbyists and the geopolitical tension stemming from the recent U.S. presidential election. The latest summit did not advance the COP28 pledges for a transition away from fossil fuels, casting a shadow over future progress. Nonetheless, the resolution on the rules for trading carbon offsets marks a step forward in encouraging investment in carbon removal projects.

(With inputs from agencies.)