The 29th annual climate conference under the United Nations Framework Convention on Climate Change (UNFCCC) is set to take place in Baku, Azerbaijan, on November 11-12, 2024.

• This pivotal event aims to refine global strategies to combat human-caused global warming and address the urgent need for climate action.

Significance of the Conference

• Finance COP: The upcoming conference in Baku is being characterised as a pivotal “Finance COP,” emphasizing the urgent need for robust financial commitments to address climate change. 
  • It is crucial that financial mechanisms are established to facilitate the transition to low-carbon economies, particularly for developing nations.
• NCQG: The Paris Agreement, established in 2016, mandates that countries set a New Collective Quantified Goal (NCQG) by 2025, with the previously pledged $100 billion in climate finance serving as a baseline. 
  • Expectations surrounding the NCQG will be a central topic of discussion at the Baku conference, highlighting the need for concrete commitments and accountability.

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Key Issues and Challenges

• Differentiation in Responsibilities
  • A contentious point in the negotiations is the expectation that developing nations, including major emitters like China and India, contribute to climate finance. 
  • This has fueled tensions, as developed countries often resist compromising their lifestyles while expecting poorer nations to adopt cleaner energy pathways without equivalent financial support. 
  • The high costs of transitioning to cleaner, land-intensive, and relatively expensive renewable sources remain a significant barrier.
• The $100 Billion Pledge
  • During the Copenhagen climate summit in 2009, developed nations committed to providing $100 billion annually by 2020 as climate finance to assist developing countries in their transition to low-carbon economies. 
  • However, this promise remains largely unfulfilled, leading to frustration among developing nations. 
  • The lack of clarity in defining “climate finance” and delays in financial disbursement mechanisms have exacerbated these concerns.
• Carbon Markets: 
  • Developed nations or companies could fund renewable energy projects in developing countries in exchange for tradable carbon credits. 
  • However, unresolved rules governing these markets hinder effective implementation, and current discussions have yet to lead to actionable frameworks.

Way Forward

As countries prepare to meet in Baku, it is crucial to focus on clear, actionable steps rather than mere rhetoric. The time for action is now.

• Building Consensus on Funding and Implementation
  • To make real progress, both developed and developing countries must work together. 
  • This collaboration requires strong, clear commitments to provide financial support and share the responsibility of reducing emissions. 
• Enhancing Transparency and Accountability
  • Developing nations should clearly understand how climate finance works, and developed nations must be held accountable for fulfilling their financial promises. 
  • Establishing robust oversight mechanisms will ensure that funds are defined, distributed, and utilized effectively.

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Conclusion

The Baku conference represents a critical opportunity for the international community to recommit to climate action. With the stakes higher than ever, concrete actions and transparent mechanisms are essential to address the challenges of climate change effectively. It is imperative that nations come together to forge a path forward that prioritizes sustainability, equity, and accountability.