COP29: A Strident Climate Meeting with Silver Linings

This year's COP29 climate conference in Baku began under unusually tense conditions. Host Azerbaijan faced criticism for its organization, and a controversial agenda led to heated discussions among the delegates. This was compounded by the news of Donald Trump's re-election, who regularly dismisses climate change as a "hoax," and the withdrawal of the Argentine delegation under Javier Milei – an indication of potential changes in the global climate agreement. Despite these adversities, the meeting ultimately proved to be a success for still-functioning multilateralism. In controversial negotiations that extended beyond the scheduled time, delegates from nearly 200 countries reached an agreement on a global financing deal to assist poorer nations in addressing climate change. The agreement obligates wealthy countries to triple funds for developing countries to at least 300 billion USD annually by 2035, though this remains significantly below the targeted sum of 1.3 trillion USD. Climate advocates sharply criticized the outcome, while countries like India condemned it as inadequate. Nevertheless, a broad majority of developing countries agreed, reflecting on the political realities and limited financial leeway of leading industrial nations. A positive aspect is that the Baku Agreement has sparked discussions on financial reforms aimed at promoting private climate financing. Development banks, including the World Bank, are already working on measures to counter investment barriers such as currency risks and regulatory uncertainties. The search for new financing sources, such as through carbon taxes on international transport, is gaining increasing importance. In light of the upcoming COP30 in Brazil, climate-sensitive governments are calling for stronger coordination among countries that already support carbon pricing mechanisms. These measures are urgently needed given the prolonged global inaction in climate policy.