The 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) concluded on 24 November in Baku, Azerbaijan, after over two weeks of heated discussions. This year’s conference had a strong focus on climate finance, exploring ways for poorer countries – often the hardest hit by the climate crisis – to access funds from wealthy countries, which are largely responsible for the triple planetary crisis, to mitigate climate change and build resilience to its impacts. Despite numerous challenges and several deadlocks, negotiators ultimately reached a compromise text for a resolution.

The conference faced a difficult start, and expectations for significant breakthroughs were low. Critics attributed some of the pessimism to the host country’s controversial reputation amid allegations of human rights abuses and its significant role in fossil fuel extraction. The outlook was further clouded by the absence of key global leaders such as China’s President Xi Jinping, US President Biden, as well as Commission President von der Leyen. This absence, combined with the rise of anti-environmentalism and climate scepticism, given new impetus by Trump’s re-election, has cast doubt on ambitious outcomes.

The final agreement addresses several issues, including the creation of new rules for a global carbon market under Article 6 of the Paris Agreement, creating two different types of markets: bilateral carbon trading between countries, and a global crediting mechanism for countries to sell emission reductions. The most important and controversial aspect of the conference, however, is the agreement on the “New Collective Quantified Goal on Climate Finance” (NCQG), also known as the “Baku Finance Goal” (BKF). It has been agreed that poorer countries would receive at least $1.3 trillion a year by 2035 to help them transition to a low-carbon economy and cope with the impacts of extreme weather. However, only $300 billion of this amount would come primarily in the form they need most – grants and low-interest loans from wealthier world. The rest would come from private investors and a range of potential new sources, such as levies on fossil fuels and frequent flyers, yet to be agreed. Under the UN framework, only 24 wealthy countries, including the US, the EU and Japan, have been required to provide financial resources to poorer countries. They sought to reduce their financial burden by trying to attract other contributors and the private sector. This is reflected in the second part of the final NCQG agreement. Poorer countries insisted that they needed $1.3 trillion a year from wealthy countries alone. Instead, the text calls upon “all actors” to increase funding from “all public and private sources” to “at least $1.3 trillion” by 2035. The new finance goal also leaves the door open for “voluntary” contributions from those countries that have not yet provided official climate finance, such as China.

The agreement has been met with fierce opposition and criticism that it is insufficient and not ambitious enough. The Azerbaijani COP Presidency has been largely blamed for the inadequate outcome, while other petrostates, such as Saudi Arabia, have been blamed for playing an obstructive role, repeatedly trying to remove references to the fossil fuel transition that was the greed of last year’s COP28 in Dubai.

Next year’s conference, COP30, will be held in Belem, Brazil, marking the third year in a row that the climate talks will be held in a country that plans to expand its domestic production of fossil fuels.

The global fight against the triple planetary crisis is suffering serious setbacks; the results of COP29 and the recent weakening of the deforestation law by members of the European Parliament are the latest evidence of this. Against this backdrop, the EU needs to step up its green diplomacy efforts, especially in the framework of the COP, and engage more with non-EU countries in order to strengthen its leadership in global climate action. The EU’s own green transition strategy, the European Green Deal (EGD), sets out the EU’s path towards the 1.5°C target under the Paris Agreement, with legally binding targets set out in the European Climate Law. In her political guidelines for the next five years, Commission President Ursula von der Leyen reaffirmed her strong commitment to the EGD. She pledged to enshrine the 90% greenhouse gas (GHG) reduction target by 2040 in the European Climate Law and to bring forward new legislative proposals such as a new Clean Industrial Deal and an Industrial Decarbonisation Act. The EU must deliver on its commitment to advance the fight against the triple crisis through a strong implementation of the EGD and step up its green diplomacy efforts to lead global climate action.

 Key Texts 

• European Parliament: resolution on the UN Climate Change Conference in Baku, Azerbaijan (COP29)
• European Commission: communication on Europe’s 2040 climate target
• Council of the European Union: council conclusions on the UN Climate Conference (COP29)

Upcoming Events 

• 4 December: ENVI meeting
• 16 December: Energy Council
• 17 December: Environment Council
• 19 – 20 December: European Council

 European Movement International’s Position 

As we argue in our latest policy position entitled ‘Delivering a Strong European Green Deal in Stormy Times’, the European Green Deal (EGD) remains the EU’s key commitment to tackling the triple planetary crises of climate change, biodiversity loss and pollution, while paving the way for a green and socially just transition. We advocate a holistic, inclusive approach that represents the diversity of European society, with a particular focus on vulnerable groups, in order to achieve a strong EGD.

In the face of the new political landscape, where authoritarian environmental sceptics are gaining ground and influencing public discourse, it is essential to reaffirm the status of the EGD as a top political priority. It is necessary to launch extensive awareness campaigns to highlight the severe risks posed by the triple planetary crisis while supporting the EGD as the key to a secure and prosperous future.

Rigorous and ambitious implementation of EGD policies is of utmost importance. The European Climate Law enshrines a legally binding goal of net-zero greenhouse gas (GHG) emissions by 2050, with a 55% reduction by 2030. A proposed new 2040 target of a 90% GHG reduction further emphasises the EU’s commitment. However, to ensure that the 1.5°C target of the Paris Agreement remains feasible, the EU must pursue even more ambitious goals: 65% GHG reduction by 2030 and net-zero emissions by 2040.

Member States must play their part through National Energy and Climate Plans (NECPs), which are key to achieving the EU’s climate change objectives. Updated NECPs reflecting higher ambitions are essential, with transparency, public participation and inclusiveness at the forefront of their development. Underlining the importance of more ambitious and transparent NECPs, the Commission has just decided to launch infringement proceedings against 13 Member States for failing to submit their latest updated NECPs.

Social inclusivity is a cornerstone of the EGD’s success. Vulnerable groups, including those in rural areas and workers in high-carbon industries, must not be left behind. This calls for increased public investment, reskilling initiatives, and support for SMEs. Engaging organised civil society through structured dialogue and participatory approaches is critical for building broad support and ensuring effective, democratically legitimate policies.

To finance the transition, the EU needs to increase both public and private investment, using instruments such as the European Green Deal Investment Plan and tackling the fiscal challenges that threaten progress. This is also reflected in our position “For a future-proof EU economic governance”.

Finally, institutional reforms, including shifting from unanimity to qualified majority (QMV) voting in key policy areas, would empower the EU to act decisively.