Climate, Cop29 kicks off in Baku in search of funds to finance poor countries

The Cop29 on climate opens today in Arzerbaigian. President-elect Donald Trump intends to pull the US out of the Paris Agreement by signing an executive order on his first day in office, according to the Wall Street Journal. But from the throne of Peter comes a warning: 'The Baku conference will make an effective contribution to the protection' of the planet, asks pope Francis.

So here we are for the 29th act of the UN Climate Conference. From 11 to 22 November, delegations from more than 190 countries will gather in Baku in Azerbaijan at Cop 29. In an attempt, once again, to shake up action to curb global warming nine years after the Paris Agreement. But also to take a few steps forward to finance the phase-out of fossil fuels in developing countries with new resources on the table and to complete the tangled puzzle of carbon markets.

From the perspective of countries' commitments, 'this Cop is seen as a transitional phase between the Dubai Conference and the next one in Brazil. It is part of a triptych designed to lay the foundations for the success of the new cycle defined by the pace of the 2015 Paris Agreement'. explains Arvea Marieni, innovation manager and sustainability expert, Climate Pact Ambassador for the EU Commission in Belgium and Italy, innovation expert in the Global Climate Change Innovation Hub and member of the EU Europe Direct Team. While the first global stocktake was completed in 2023 in the Emirates, next year states will have to submit detailed plans on how they intend to concretely meet the Paris targets, the so-called Nationally Determined Contributions (NDCs). The European Union has already confirmed that it will set a new interim target for 2040, aiming for a 55% reduction by 2030, 90% by 2040 and climate neutrality by 2050. The deadline for MoUs is set for February 2025, with Biennial Transparency Reports (Btr) by 31 December 2024. However, countries are encouraged to submit their plans, including National Adaptation Plans (NAPs), before the next COP to guide the international community towards achieving the Paris Agreement.

In Baku, states will resume talks on the crucial issue of climate financing. In 2009, the 'rich' countries pledged to mobilise 100 billion dollars per year by 2020 for climate action in developing countries. However, the target was reached two years too late. "A subsequent climate finance target after 2025, the so-called New Quantified Collective Target (Ncqg), should be formalised at Cop 29," she says, "which will be established from the initial 100 billion, taking into account the needs and priorities of developing nations. This new target should be structured to address some of the challenges that have hindered the achievement of the previous one'. The amount put on the table, he continues, "will be a step forward but still not enough when one considers that the annual investment estimates required for the global transition range from $5.9 to $9 trillion per year. The simplest solution would be a fossil fuel taxation system that still divides countries".

Arvea Marieni, esperta del Team Europe Direct della Commissione Ue in Italia, sarà impegnata in tre panel alla Cop 29

To provide a viable alternative to a carbon tax, Marieni recalls, in Article 6 of the Paris Agreement, states opted for the complex world of emissions trading and carbon markets. Ten years later the parties are still negotiating on their regulation. Today, however, there is a glimmer of hope: 'Completing the framework of rules for the functioning of carbon markets,' he notes, 'is the second major outcome that Cop 29 should bring. This would be important, as the volume of business in carbon markets is currently valued at between USD 2.2 and 2.5 billion. If the mechanism were fully operational as was envisaged in Paris, this amount could increase significantly, making further contributions to the financing of global climate policies and aligning with the realities of countries' needs for transition'. The European Union arrives in Baku with a strong focus on carbon pricing, as well as a position aimed at eliminating inefficient fossil fuel subsidies. In major European countries alone these still amount to EUR 112 billion per year.