New Climate Finance Goals Set at Baku Conference

The recent Baku Climate Change Conference, held from November 11 to 22, 2024, marked a significant milestone in global climate finance. Delegates from around the world convened to establish new collective climate finance goals aimed at supporting developing countries in their climate action efforts. The conference concluded with a commitment to scale up financing to at least USD 1.3 trillion per year by 2035, with a specific target of USD 300 billion annually for climate action in developing nations.

Key Takeaways

• New Collective Climate Finance Goal (NCQG): Aiming for at least USD 1.3 trillion per year by 2035.
• Target for Developing Countries: At least USD 300 billion per year for climate action by 2035.
• Funding Sources: Emphasis on public, private, bilateral, multilateral, and alternative sources, with developed countries leading the charge.
• Tripling Climate Fund Outflows: Countries agreed to at least triple annual outflows from key climate funds by 2030.
• Focus on Vulnerable Nations: Special attention to least developed countries (LDCs) and small island developing states (SIDS).

The conference’s decisions reflect a continuation of the previous goal of mobilizing USD 100 billion per year by 2020. Negotiations were challenging, with developed nations advocating for a broader contributor base while developing countries sought higher financial commitments. Some nations called for specific public finance targets and minimum allocations for LDCs and SIDS.

Achievements of the Conference

The Baku Climate Change Conference also saw the conclusion of years of negotiations regarding the modalities for establishing carbon markets under the Paris Agreement. Key outcomes included:

1. Article 6.2 Decision: This allows the Secretariat to provide registry services for countries to issue mitigation outcomes as units, with interoperability with the international registry.
2. Article 6.4 Methodologies: Adoption of methodologies and removals requirements, with the first issuances expected as early as 2025.
3. Gender Work Programme: Extension of the work programme on gender to ensure inclusivity in climate action.
4. Global Goal on Adaptation (GGA): Further guidance on defining indicators to assess progress toward adaptation goals.
5. Loss and Damage Fund: Adoption of arrangements for the new fund aimed at addressing loss and damage from climate impacts.
6. Local Communities and Indigenous Peoples Platform: Extension of the mandate for the working group facilitating its implementation.

Challenges and Unresolved Issues

Despite the progress made, several critical issues remained unresolved, including:

• Global Stocktake (GST) Dialogue: Lack of agreement on how to implement outcomes from the GST.
• Just Transition Work Programme: No consensus reached on this important aspect of climate action.
• Adaptation Committee Review: Ongoing discussions regarding the effectiveness and performance of the Adaptation Committee.
• Financial Mechanism Reviews: Reviews of the Standing Committee on Finance and the Financial Mechanism were not concluded.
• Nationally Determined Contributions (NDCs): Further guidance on NDC features and their preparation for the upcoming 2025 submissions.

The Baku Climate Change Conference was a pivotal moment in the global fight against climate change, setting ambitious financial goals while highlighting the need for continued collaboration and commitment among nations. As the world moves forward, the outcomes of this conference will play a crucial role in shaping the future of climate finance and action.

Sources

• Baku Conference Sets New Collective Climate Finance Goal | International Institute for Sustainable Development, International Institute for Sustainable Development.
• Baku Conference Sets New Collective Climate Finance Goal | International Institute for Sustainable Development, International Institute for Sustainable Development.