COP29 reaches consensus on "Baku Finance Goal" to support climate projects

The COP29 Presidency of Azerbaijan has announced the agreement of the Baku Finance Goal (BFG), a new commitment to channel $1.3 trillion of climate finance to the developing world each year.

Success on the COP29 Presidency’s top priority for the UN Climate Summit represents a significant uplift from the previous climate finance goal of $100 billion and will unlock a new wave of global investment, a press release on the COP29 website says, Caliber.Az reports via local media.

The core of the new goal is the commitment of developed countries to allocate at least $300 billion annually for climate projects in developing nations. This figure is three times higher than the previous target of $100 billion set earlier.

The success of the year of diplomacy under Azerbaijan's leadership

The breakthrough was the result of months of intense diplomatic efforts under the leadership of Azerbaijan's COP29 presidency. 

“The Baku Finance Goal represents the best possible deal we could reach, and we have pushed the donor countries as far as possible. We have forever changed the global financial architecture and taken a significant step towards delivering the means to deliver a pathway to 1.5C. The years ahead will not be easy. The science shows that the challenges will only grow. Our ability to work together will be tested. The Baku Breakthrough will help us weather the coming storms,” COP29 President-Designate Mukhtar Babayev stated.

New mechanisms and historic decisions 

COP29 ended the decade-long wait for the conclusion of Article 6 negotiations on high integrity carbon markets under the UN. Financial flows from compliant carbon markets could reach $1 trillion per year by 2050. They also have the potential to reduce the cost of implementing national climate plans by $250 billion per year. 

The conference also marked the launch of the Loss and Damage Fund, which will begin distributing funds in 2025. 

A New Era of Climate Cooperation COP29 was a landmark event, marking key steps in the fight against climate change:

The approval of transparency and accountability standards, including the Baku Transparency Platform. 

The adoption of the "Baku Initiative on Financing, Investment, and Trade" (BICFIT);

The announcement of global commitments on methane emissions reduction, sustainable tourism, and water resources.

International experts emphasise that the outcomes of COP29 reaffirm Azerbaijan's role as a leading player in the global climate agenda.

By Naila Huseynova