The twenty-ninth United Nations Climate Change Conference (COP29), held in Baku, Azerbaijan, was dubbed "the COP of finance" because the most anticipated decision was the establishment of the New Collective and Quantifiable Global Climate Finance Goal (NCQG), the amount that developed countries would pledge to finance climate action in developing countries. This issue grabbed all the attention, overshadowing everything else.

In addition, the recent re-election of Donald Trump as President of the United States, accompanied by his threat to abandon the Paris Agreement and reverse the country's climate action, set the tone for the event.

The negotiations, which took place from November 11 to 22, were intense and ended almost two full days late, with the approval of a text that caused great disappointment.

However, the invitation is not to be blinded by disappointment. As much as we want, demand and hope, the international climate negotiations are not delivering what we so desperately need. Let us look for hope in what is happening and working, such as local, community-led projects and the work of civil society that is not giving up.

Here is a review of COP29 based on what was agreed on climate finance and other relevant issues.

A new climate finance target

The mandate was clear: the new target should exceed the previous one of $100 billion per year and respond to the needs and priorities of developing countries. But while developing countries demanded $1.3 trillion per year, the offer was a mere $300 billion (less than a third and just 12% of the global military budget in 2023) by 2035. "Is this a joke?" exclaimed the head of the Bolivian delegation at a press conference.

Developing countries also demanded that financing be adequate, i.e. based mainly on public resources, in the form of grants and highly concessional instruments that would not add to the heavy debts they already carry. They also called for the explicit inclusion of loss and damage as one of the objectives of financing (along with mitigation and adaptation), as well as a specific target for adaptation.

None of this was achieved. The target was left open to private financing, further diluting the responsibility of developed countries. There was no specific target for adaptation, nor was there any mention of loss and damage. In case there was any doubt, all references to human rights were removed from the final text.

The only saving grace was a call to mobilize $1.3 trillion in climate finance annually from a broad base of sources through the so-called Baku-Belem Roadmap, with a view to achieving this goal by 2035. However, this is a "call" and not a binding commitment, the concrete results of which will depend on political will in the coming years.

Global stocktaking and gender issues

No significant progress was made on the results of last year's Global Stocktaking on the implementation of the Paris Agreement, particularly on the transition away from fossil fuels. The issue was deferred to COP30, which will be held next year in the Brazilian city of Belém do Pará.

While there has also been insufficient progress on gender issues, some progress should be recognized, such as the extension of the Lima Work Program to 10 years, which lays the groundwork for the development of a Gender Action Plan and provides an opportunity to further deepen the integration of gender into climate action, particularly as countries develop updates to their Nationally Determined Contributions (NDCs).

In addition, the text of the NCQG recognizes women as beneficiaries of funds but fails to ensure that the specific circumstances and intersectional discrimination that many women face are addressed.

Carbon markets

What did see advances during the negotiations were carbon markets, with the approval of the rules for a global market.  Carbon markets are trading systems where carbon credits are bought and sold. Each credit represents one ton of CO₂, or its equivalent in other greenhouse gases, removed from the atmosphere. The credits are generated by projects that reduce emissions (such as forest conservation, renewable energy, or energy efficiency). The buyers are polluting companies that want to offset their emissions in order to remain in compliance.

The issue has been under discussion for more than a decade due to the difficulty of ensuring the credibility of the system to reduce emissions. Although it is the last outstanding issue of the Paris Agreement, signed more than 10 years ago, civil society is not celebrating. These markets allow companies to continue polluting if they pay for carbon reductions elsewhere in the world.

Methane emission reductions

A promising development was the signing of the Declaration on Methane Reduction from Organic Waste by more than 30 countries. The signatories, representing nearly half of global emissions, committed to setting sector-specific methane reduction targets in their future NDCs, underscoring the importance of organic waste management in the fight against climate change.

Closing thoughts

In the end, the results are not surprising. Conventions on climate change are often not much to celebrate, but we must not forget that they are a unique space where all countries sit down to seek consensus to advance a common goal. Its very existence reflects an intention to acknowledge historical responsibilities in favor of justice and a world where we can live together in harmony. It is a platform from which to push, even if it brings more frustration than results.

On the other hand, it is very encouraging and motivating to see civil society in action. Hundreds of representatives from different organizations and movements are doing their best to achieve results that reflect the fulfillment of international commitments of developed countries towards their developing counterparts, the climate and the natural balance of our planet.

Finally, the side events that take place parallel to the negotiations are a source of inspiration. On the sidelines, without much fanfare, there are people from communities and indigenous peoples who are implementing climate solutions in their territories, with concrete, successful results. These people, like seeds silently germinating, are a powerful source of hope.