As the 29th UN Climate Change Conference (COP29) kicked off in Baku, Azerbaijan, world leaders, negotiators, and activists gathered to address the pressing challenges of climate change. The first week brought significant announcements, fiery debates, and a clear sense of urgency, but also highlighted the deep divides that persist in global climate action.
However, the choice of Azerbaijan as host sparked controversy. Many have questioned the country’s commitment to climate action given that its largest exports are fossil fuels, creating a disconnect between its role as host and the goals of COP. This paradox has fuelled debates about the integrity of the conference and the need for reforms to prevent fossil-fuel-reliant nations from hosting future summits.
1. Carbon Market Rules Approved
On Day 1, nations reached a milestone agreement on new carbon market rules, paving the way for global carbon credit trading. This step aims to incentivize emissions reductions across borders while creating opportunities for sustainable economic growth.
U.S. climate envoy John Podesta reaffirmed America’s commitment to cutting emissions and challenged China to take on a greater leadership role. Meanwhile, COP29 President Mukhtar Babayev emphasized the need for increased climate funding as the World Meteorological Organisation warned that 2024 could be the warmest year ever.
2. Climate Finance Takes Center Stage
The financial gap between wealthy and developing nations dominated discussions. On Day 2, the G77 and China demanded $1.3 trillion annually to support climate adaptation and justice, highlighting the disproportionate impacts of climate change on vulnerable nations.
At the same time, Azerbaijani President Ilham Aliyev’s defense of fossil fuels underscored the tensions between host responsibilities and climate goals. In contrast, UN Secretary-General António Guterres called for accelerating the shift to clean energy to prevent economic instability caused by fossil fuel dependence.
3. Negotiating Climate Finance Goals
By midweek, negotiators focused on a 34-page draft addressing climate finance targets, proposing funding goals ranging from $100 billion to $2 trillion annually. Multilateral development banks pledged $170 billion annually by 2030, but questions about fairness and accountability persist.
Meanwhile, Brazil, host of COP30, presented its ambitious climate plan with forest protections aimed at reducing emissions by 2035. Yet, its plans for fossil fuel expansion drew criticism, raising concerns about its true commitment to energy transition.
Setbacks and Rising Tensions
4. Calls for COP Reform and Fossil Fuel Debates
COP29 saw rising calls for reforms, with many demanding stricter rules to prevent fossil-fuel-reliant nations from hosting. Critics pointed out that 1,800 fossil fuel lobbyists attended COP29, fuelling demands for better conflict-of-interest policies. Efforts to negotiate a fossil fuel phaseout collapsed due to deep divides among nations.
5. Adaptation Funding and Activist Voices
A $239 million shortfall in funding for adaptation projects jeopardized plans for vulnerable nations. Activists in Baku, restricted by heavy protest regulations, used banners to demand wealthy countries to “pay up.”
At PACE, we know the clean energy transition isn’t just about innovation—it’s about people. As a recruitment company specializing in Clean Energy, we connect top talent to organizations shaping a greener future.
COP29 is a pivotal moment for the industry, and PACE is committed to helping companies and professionals seize opportunities that drive the transition to sustainable energy. Together, we can create meaningful change.
As COP29 enters Week 2, pressure is mounting to close the gaps in finance, address fossil fuel reliance, and push for meaningful agreements. The urgency is clear, and all eyes are on the negotiators as they work toward real solutions for the climate crisis.
Stay tuned for updates and join the conversation—because the future depends on what we do today.
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