The inaugural week of the 29th Conference of the Parties (COP29) in Baku wrapped up on November 16 with negotiators leaving the summit largely at an impasse. Deep-seated disagreements between developed and developing nations have hindered progress on pivotal issues such as climate finance, trade policies, and the equitable distribution of responsibilities in combating climate change.
Known as the “Finance COP,” COP29 was anticipated to make significant advances in bridging the global climate funding gap. Central to these expectations was the introduction of a New Collective Quantified Goal (NCQG), aimed at replacing the unmet USD 100 billion annual climate finance commitment. The NCQG seeks to provide a more ambitious financial framework to support developing countries in their efforts to mitigate and adapt to climate change.
The proposed NCQG requires collective investments amounting to trillions of dollars, targeting the establishment of clean energy infrastructures, adaptation to escalating climate impacts, and recovery from climate-induced disasters. For nations like Bhutan, which are highly susceptible to climate disruptions, the financial demands are urgent. Bhutan’s Nationally Determined Contribution (NDC) report highlights a need for USD 385 million for adaptation and USD 600 million for mitigation in the near term. Despite securing funds from various sources, Bhutan faces significant bureaucratic hurdles in accessing these resources.
At the heart of COP29’s contentious debates, developing countries, including Bhutan, have been advocating for grant-based climate finance for adaptation and loss and damage, coupled with highly concessional loans for mitigation from the highest greenhouse gas emitters. However, disagreements over the allocation and distribution mechanisms of climate finance have led to a stalemate in negotiations.
A draft version of the NCQG released on Saturday made headway on technical aspects such as fund accessibility, transparency, and financial progress metrics. Nevertheless, political obstacles persist, particularly regarding whether the NCQG should adopt a single-layer or multi-layered financial structure. This contention underscores the widening rift between developed and developing nations over climate responsibility.
Teresa Anderson, Global Climate Justice Lead at ActionAid, urged wealthy nations to enhance their financial commitments, emphasizing that developing countries are disproportionately affected by the climate crisis. “If we are serious about climate action, we have to pay for climate action,” Anderson asserted, criticizing the burden of debt on frontline nations recovering from disasters like floods and droughts. She highlighted the disparity between the trillions in grants needed annually and the mere USD 28–35 billion provided in 2022, drawing a stark comparison to global ice cream expenditures.
Anderson also condemned the reliance on loans for climate finance, arguing that they exacerbate debt and perpetuate fossil fuel dependency. “Paying for ambitious climate action now will be far cheaper than the cost of catastrophe later,” she stated, calling on the global north to fulfill their financial obligations and support the transition to a sustainable future.
Dr. Pema Gyamtsho, Director General of the International Centre for Integrated Mountain Development, expressed optimism despite the impasse. “We really hope that there will be an agreement among parties not only on increasing finance for climate action but also on enabling access to these finances,” Gyamtsho said. He highlighted the critical need for climate finance in the Hindu Kush Himalayas, including Bhutan, to address the severe impacts of climate change.
One notable advancement at COP29 was the adoption of Article 6.4 of the Paris Agreement, which aims to establish an international carbon market. This framework allows countries to trade emissions reductions credits, such as those generated from tree planting or rainforest preservation. While seen as a tangible step forward, the implementation methodology for Article 6 remains unresolved, reflecting ongoing challenges from the Paris Agreement negotiations in 2015.
As delegates prepare for the second week of COP29, the current deadlock raises concerns about the summit’s ability to deliver concrete results. With COP30 scheduled to take place in Brazil next year, the outcomes of COP29 in Baku are expected to significantly influence the global climate agenda in the foreseeable future.
This report is part of the COP29 Climate Change Media Partnership, a journalism fellowship organized by Internews’ Earth Journalism Network and the Stanley Center for Peace and Security.
