COP29 talks in Baku set to establish annual climate finance goal

The negotiations are underway at the COP29 conference in Azerbaijan’s capital Baku to establish a new financial target ranging from $300 billion to $500 billion annually to combat climate change.

The talks are being held in a tense atmosphere, a diplomatic source said, Caliber.Az reports via local media.

The source noted that the EU and the US are reluctant to shoulder a significant financial burden. The EU recognizes the urgency of the issue, knowing that after Donald Trump’s return to power, securing such financial commitments would become increasingly difficult. The Western coalition is seeking to involve emerging economies with stronger financial capacities, such as China, Qatar, and other nations. South Korea, Singapore, and to some extent the UAE, have already expressed a willingness to participate.

However, both China and Saudi Arabia have strongly opposed the proposal. China, in particular, is exerting pressure on the process through its alliance with the G77 countries, challenging the West’s position. The source reminded that the US strategy at all COP negotiations has been to avoid committing to any obligations while protecting America’s oil and gas industry.

The current negotiating team is acting with great uncertainty following the election of Donald Trump as president. Saudi Arabia, Kuwait, Bolivia, and other countries within this group are opposed to the "fossil fuel transition" document adopted in the UAE last year and are blocking its reintroduction to the agenda. 

Azerbaijan is serving as a mediator and leading the negotiation process, but the geopolitical polarization remains sharp. Securing a new financial target would be a significant achievement for the global community. If this does not happen, it will be a failure for the world and for climate action as a whole. 

COP29, which is being held at Baku Stadium from November 11-22, is Azerbaijan’s most significant international event to date and the first time the country has hosted a COP conference. The summit kicked off with the signing of the Host Country Agreement and other key documents between the Azerbaijani government and the UN Framework Convention on Climate Change (UNFCCC) Secretariat. One of the central goals of COP29 is the establishment of a New Collective Quantitative Goal (NCQG) for climate finance. To further this aim, the COP29 presidency has introduced 14 key initiatives designed to integrate climate action with the United Nations Sustainable Development Goals (SDGs). 

These initiatives cover a broad spectrum of critical areas, including the development of green energy corridors, energy storage solutions, climate resilience strategies, clean hydrogen, methane reduction from organic waste, and the promotion of green digital technologies. A flagship proposal of the conference is the creation of the Climate Finance Action Fund, which is aimed at supporting efforts to limit global warming to 1.5°C. Throughout the event, Azerbaijan has continued to reaffirm its strong commitment to addressing climate change and promoting environmental protection. The unanimous decision to select Azerbaijan as the host for COP29 reflects the global community’s trust in the country’s leadership on climate-related issues. In his opening remarks, President Ilham Aliyev underscored Azerbaijan’s central role in global climate efforts, emphasizing the nation’s dedication to tackling climate change and advancing sustainable development.

By Naila Huseynova