The just concluded UN climate summit in Baku, Azerbaijan, delivered a deal on climate finance on Sunday, November 24, following two weeks of "tense” negotiations. It was agreed that developed countries would pay $300 billion a year by 2035 to help the developing countries adapt to and combat the consequences of climate change.
ALSO READ: COP29: Kagame calls for sufficient climate finance for Africa
The $300 billion global climate finance deal adopted at the COP29 has, however, been criticized by majority of developing countries, largely expressing disappointment over the lack of commitment from developed nations. While the development fell short of the $1.3 trillion earlier targeted by vulnerable countries, several climate analysts welcomed the commitment, saying that the challenge lies in the implementation.
ALSO READ: COP29: What is at stake at the 2024 global climate summit?
Here are the five major takeaways from the global summit:
Countries need to pay up
Climate analysts have already weighed in on the finance deal, saying that the COP29 deal means nothing if countries don't foot their bills. According to the deal, the $300 billion will come from "all public and private sources”.
Under a framework established by the UN in 1992, 23 developed countries - plus the European Union - who are historically responsible for the most planet-heating emissions are obliged to contribute to climate finance.
"The next move is for countries to honour their commitments. This will prove integrity in the climate action journey,” Abbias Maniragaba, a professor in environmental studies and climate researcher based in Kigali, told The New Times.
Maniragaba explained that alongside governments, there is an expectation that international banks, including the World Bank, will help disburse the financial muscle.
"This is a step in the right direction if we are to consolidate efforts toward climate action. Hopefully, private companies, and investors will follow suit.”
Maniragaba shared similar sentiments with UN Climate Change Executive Secretary Simon Stiell who told a media briefing that; "This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country. But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives.”
Experts warned that without concrete payment mechanisms, the promise could remain unfulfilled.
Why the $300 billion anyway?
According to the UN Climate Change, developing countries are most and earliest impacted by climate change, yet they are the least well-equipped to deal with it. The United Nations Framework Convention on Climate Change (UNFCCC) is the UN process for negotiating an agreement to limit dangerous climate change. It is an international treaty among countries to combat dangerous human interference with the climate system.
The finance deal agreed upon at COP29 is expected to be used for two main goals; preparing for the impacts of climate change as well as transitioning away from emissions-producing fossil fuels. Concorde Kubwimana, a climate activist based in Kigali, explained that preparation (commonly adaptation) means projects like building homes and roads that are more resilient in the face of extreme weather.
"This also consists of making key industries for the continent more sustainable, starting with agriculture,” Kubwimana said.
To produce less emissions, he added, developing countries are expected to spend the money on installing solar and wind power and other renewables, as well as making industries less polluting.
A decade-long breakthrough reached on carbon markets
After nearly 10 years of negotiations, COP29 finalized rules for global carbon markets under Article 6 of the Paris Agreement.
The agreement establishes two mechanisms, including allowing for bilateral trading of carbon credits between countries (Article 6.2) as well as creating a global crediting system for emissions reduction projects.
Ordinarily, carbon credits are generated by initiatives such as reforestation or renewable energy projects, and they allow countries or companies to offset emissions.
Activists argue that the new development could unlock billions of dollars for climate projects while driving down emissions. However, like the finance commitments, Carbon Market Watch, an international watchdog, said that the success of the new rules will depend on how they are implemented and whether they genuinely drive emissions reductions.
Countries bracing for national climate plans
The majority of countries are rushing to submit their updated Nationally Determined Contributions (NDCs) by February 2025.
These plans will outline how individual countries plan to reduce emissions and adapt to the impacts of climate change.
Under the current NDC strategy, Rwanda aims to reduce greenhouse gas emissions by 38 percent, which is equivalent to a reduction of 4.6 million tonnes of carbon emissions, with a significant portion of the reductions coming from agriculture (49 percent), energy (34 percent), waste management (14 percent), and industrial (3 percent) sectors.
At COP29, several countries received praise for ambitious NDC submissions. These plans focus on phasing out fossil fuels and scaling renewable energy.
UN Secretary-General António Guterres called on all nations to follow suit: "The end of the fossil fuel age is an economic inevitability. New national plans must accelerate the shift and help to ensure it comes with justice.”
Brazil hailed as the next stop
The next meeting, COP30, set to take place in Belem, Brazil, is already being hailed as the "COP of COPs.”
"There is no more time to lose. Our objective will be to do what is needed to keep 1.5°C in reach,” said Brazil’s Minister of Environment and Climate Change, Marina Silva.
Silva was addressing a press conference after Brazil was officially handed the baton.
Reacting to the progress of her own country in meeting the NDC targets, Silva explained that the "brutal reality” is that emissions are still rising with most countries lagging.