With COP16, the 16th UN Biodiversity Conference about to come to a close in Columbia, attention is now turning to COP29, the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). The global conference – which takes place in Baku, Azerbaijan, from 11-22 November 2024 – will focus the world's attention on tackling the climate change crisis through developing ways to enhance ambition and enable action.

Building on the work of preceding COPs that have seen the establishment of a 'Loss and Damage Fund' and other pledges of climate finance support, this year's conference is expected to keep finance high on the agenda. Many are calling COP29 "the finance COP" in line with the aim of 'enabling action' – believing this coming together of the parties presents an opportunity to align climate finance contributions with estimated global needs. But what might the next steps look like to opening up access to finance – particularly for those countries vulnerable to the effects of climate change? And what other key issues and targets will be a focus among this year's discussions?

In this article, we look back at what COP28 achieved and explore the themes at the forefront of COP29 that will be relevant to businesses and individuals alike.

What did COP28 achieve?

1. Assessment of progress on climate change with the first 'Global Stocktake'

One of the key outcomes of COP28 was the world's first 'Global Stocktake' – a comprehensive assessment of progress made since targets agreed at COP21 were set out in the Paris Agreement of 2015 – which called on nations to set their next round of plans (Nationally Determined Contributions) for emissions mitigation and climate adaptation to ensure we collectively address the rise in global temperatures and support the transition away from fossil fuels[1]. The Paris Agreement's overarching aim is to hold "the increase in the global average temperature to well below 2°C above pre-industrial levels" and pursue efforts "to limit the temperature increase to 1.5°C above pre-industrial levels"[2]. The Global Stocktake has provided nations with the opportunity to review progress towards that goal, and the specific targets underpinning it as part of the Paris agreement, in order to develop stronger climate action plans for the 2025-2030 period, which are due by February 2025[3].

2. New funding for loss and damage

In a landmark decision two years ago at COP27, nations agreed to set up a Loss and Damage Fund to support vulnerable countries and communities who are already experiencing the adverse impacts of climate change [4]. COP28 established the framework for implementing the new funding arrangements to address loss and damage and support those countries vulnerable to the effects of climate change, introducing a new dedicated fund under the UNFCCC[5]. Key questions remain unanswered on the scope, scale, and core operational policies of the Fund, including on whether simplified and diverse access modalities can be established to properly support the most vulnerable communities in developing countries. These questions have been tabled until after COP29.

3. Enhancing global efforts to strengthen resilience

In a major step forward, parties at COP28 agreed on targets for the Global Goal on Adaptation (GGA) and its framework, which identifies where the world needs to get to in order to be resilient to the impacts of a changing climate and to assess countries' efforts[6]. The GGA framework reflects a global consensus on adaptation targets and covers the themes of water, food, health, ecosystems, infrastructure, poverty eradication and cultural heritage[7].

4. Linking climate action with nature conservation

COP28 recognised the need for linking efforts to address both the climate and biodiversity crises that, alongside pollution, make up the three main interlinked environmental issues facing humanity[8]. As part of the Global Stocktake, governments were urged to consider ecosystems, biodiversity and carbon stores, such as forests, when developing their stronger national climate action plans[8]. With the COP16 biodiversity conference having taken place shortly before the opening of COP29, we expect that the theme of reducing nature loss and encouraging biodiversity will also be high on this year's climate change conference agenda.

5. Ramping up practical climate solutions

COP28 provided a platform for governments, businesses and civil society to collaborate and showcase their practical climate solutions[10]. Here, the High-Level Champions, under the Marrakech Partnership for Global Climate Action launched their implementation roadmap of 2030 Climate Solutions[11]. These are a set of solutions, with insights from a wide range of non-party stakeholders, on effective measures that need to be scaled up and replicated to halve global emissions, address adaptation gaps and increase resilience by 2030[12]. They cut across many of the key issues and thematic days mapped out across the two-week programme scheduled for COP29.

For further insights on the developments from last year's COP28 conference, watch our COP28 key takeaways webinar where our international expert legal panel discuss the impacts of COP28 for those operating in the Middle East, Canada, the UK and beyond.

What are the key issues for businesses on the COP29 agenda?

From a business perspective, some of the key issues that will be followed with interest at this year's COP are: finance; trade; gender equality; biodiversity; and youth, education and skills. Our environmental, social and governance (ESG) experts explore these themes in a series of short videos recorded in the lead up to COP29 – sharing their views on the headline areas expected to be debated, the outcomes from COP28, the challenges in mobilising action to deliver on the targets set and key things businesses should consider as they look at how to evolve their own approaches to climate issues, ESG and sustainability.

'The finance COP'

Dubbed 'the finance COP', COP29 is highlighting the crucial role of financial commitments in combating climate change. This year's discussions in Baku will build on previous conferences – particularly COP27, which emphasised the need for increased financial support for vulnerable nations.

The introduction of the Loss and Damage Fund (LDF) at COP28 marked a significant step forward for the green agenda. With $420 million pledged on the first day, the LDF aimed to establish a fund dedicated to helping developing countries disproportionately affected by climate change. While the LDF does align with the Paris Agreement's emphasis on developed nations providing financial support to less affluent and more vulnerable countries, critics argue it fell short of expectations.

Attendees of COP29 will be looking for progress on the New Collective Quantified Goal (NCQG) set out in the Paris Agreement, which seeks to address persistent gaps in climate finance. The ambitious target of raising climate finance from the modest, yet still unachieved, target of £100 billion of investment per year set in 2009 to an estimated investment figure of between £500 billion to £1 trillion will seek to provide a more realistic and clearer financial framework for climate finance[13]. The NCQG also sets targets for supporting developing countries in their climate actions and, although certain specifics are currently under negotiation, it is expected to be finalised by 2025 – meaning it's likely to be a highly debated topic at COP29.

However, in focusing on the issues of climate change under a financial lens, it's important to remember that finance encompasses more than just increased investment and pledges; it also involves creating mechanisms for a more efficient market.

For COP29 to truly embody the title of "the finance COP", discussions will be expected to centre on establishing a tangible price on carbon and developing trading schemes. These initiatives aim to facilitate climate-friendly decisions through enhanced financing and make high-carbon practices financially untenable. COP29 is expected to emphasise the necessity of governmental and private sector collaboration to ensure environmentally-minded practices are at the forefront of business strategies. With potential fiscal initiatives and gains, businesses are sure to be following the proceedings closely.

International trade

With the production and distribution of goods contributing to approximately a quarter of global emissions, it is evident that managing trade can play a role in combatting the climate crisis, therefore it's an area where close attention is expected to be paid. Through companies being encouraged to provide environmentally preferable goods, services, and technologies to developing nations, it can close the environmental and green tech gap between developed and developing countries, helping transform the latter's response to climate change.

In addition, environmental metrics to negotiate trade agreements and conduct due diligence within supply chains can be employed by countries to not only incentivise sustainable practices, but also penalise environmental negligence. It is anticipated that COP29 will provide countries with the chance to discuss mechanisms to ensure trade combats, rather than incentivises, the climate crisis.

Youth education and skills

With more than 50% of youth suggesting they feel emotions such as helplessness about climate change, according to a survey of 10,000 16-25 year olds in 10 countries[14], and more than 150 countries reporting school strikes for climate (with strikes in 125 towns and cities in the UK)[15], the determination of youth generations to respond to the climate crisis is evident. Through youth involvement at COP29, the voices and concerns of young people can be integrated into global negotiations, ensuring future generations are prioritised in sustainable climate action.

Young voices can spark innovative and new discussions, as seen in Ecuador when 40 young people collaborated with experts to suggest commitments for inclusion in Ecuador's new NDCs, bringing forward discussions around environmental education within schools. Moreover, young people's feedback in relation to their perspectives on environmental, social, and governance (ESG) strategies will be invaluable for businesses seeking to align their ESG goals with the expectations of younger generations who will grow and develop in our changing world. They are important members of our communities and the consumers and employees of the future, with potential to bring fresh perspectives to driving change in this area.

The Ontario Court of Appeal recently found in favour of youth representatives, overturning a lower court's dismissal of a human rights-focussed climate litigation claim brought by seven young climate activists in Ontario. The claimants argued that the Ontario Government's greenhouse gas targets violated their rights and freedoms under the Canadian Constitution. The appellate Court found that Ontario voluntarily assumed a positive obligation to address climate change in a constitutionally compliant way when it enacted its climate legislation.[16]

Gender diversity

Parties to the UNFCCC have recognised the importance of involving women and men equally in UNFCCC processes and in the development and implementation of national climate policies that are gender-responsive. This is reflected by the early establishment of a dedicated agenda item under the Convention addressing issues of gender and climate change, and by including overarching text in the 2015 Paris Agreement. Gender issues and equality have continued to remain an important focus area at COPs with gender diversity included among the COP thematic days and discussions.

Last year's COP, COP28, also saw the establishment of a 'Gender Responsive Just Transitions and Climate Action Partnership', endorsed by more than 60 parties to the Paris Agreement. The partnership is seen as a launchpad for women's economic empowerment in the transition to a low carbon and climate resilient economy, setting out a number of gender-specific commitments as part of initiatives to deliver action on climate change.

Gender-specific discussions at COP29 will take place on the dedicated 'Gender Day' on 21 November, and will likely cover the work of the Gender Responsive Just Transitions and Climate Action Partnership, as well as outcomes from the review of the enhanced Lima work programme on gender agreed at COP25 and its gender action plan. However, while the importance of gender diversity in climate discussions is recognised, women still only make up 34% of delegates at COP29. Therefore, while COP29 aims to address these issues, achieving gender equality in climate discussions will require ongoing, global, national and individual efforts.

Biodiversity

With many coining biodiversity as our strongest natural defence against climate change, it is evident that even though biodiversity has its own dedicated COP (COP16), it will still be a large talking point in Baku. Biodiversity acts as a defence through the land and ocean serving as carbon sinks, thus meaning less carbon is released into the atmosphere and, in turn, reducing the impact of climate change. It's a topic we explore in some detail in our 'a climate for nature' article series, which engages the views of a number of senior executives on the theme of nature and how changes in this area are re-shaping the way businesses operate and plan for the future.

However, it is not a one-way stream and climate change also has an impact on biodiversity; for example, it is predicted that with a three degrees increase 41% of mammals will lose half of their habitat[17] . Therefore, it is not only biodiversity's role in the context of climate that will be discussed at COP, but also climate change in the sphere of biodiversity; especially as this conference follows so quickly on from the COP16 Biodiversity Conference, at which the implementation of the Kunming-Montreal Global Biodiversity Framework has been heavily discussed. Although these topics will be of central importance at COP29 – where a dedicated thematic day is given to biodiversity on 21 November – we expect there will be many others, as the conference agenda seeks to enable action across a diverse range of issues. For a full breakdown of the conference programme, please see the COP29_overview schedule (unfccc.int).

What else can we expect from COP29?

While finance and securing adequate climate funding is set to feature high on the agenda of this year's conference, in addition to our other top five themes above, we also expect the following to be discussed:

  • a focus on the global energy transition away from fossil fuels and toward renewable energies;
  • the promotion of peace and a truce amid ongoing geopolitical conflicts;
  • Invitations for private sector engagement with climate finance;
  • a drive to forward engagement with youth and the wider public to assist in driving climate action;
  • the recognition and discussion of current climate emergencies with a focus on adaptation and resilience;
  • discussions of strategies and plans of adaptation of those communities and ecosystems most effected by the impacts of climate change; and
  • continued support for Indigenous and vulnerable communities.

What does COP29 mean for businesses?

As with previous COPs, businesses will have a significant presence at the conference, playing a central role in discussions and decisions. This year, we expect a shift in focus from what governments can do to how they can encourage private sector engagement.

More than ever, businesses are expected to enhance their climate commitments, invest in sustainable technologies, and advocate for stronger policy frameworks to facilitate the transition to a greener future. COP29 will highlight the importance of corporate collaboration across value chains to decarbonise and support businesses in their sustainability efforts.

Additionally, COP29 will emphasise the need for businesses to engage in carbon markets and support the implementation of Article 6 of the Paris Agreement. Innovation and investment in new technologies that support climate goals will be crucial, as well as the need to adapt and build resilience in business operations and supply chains to withstand climate impacts and emergencies.

In actively participating in and engaging with COP29, businesses can drive transformative change. With the effects of climate change dominating news cycles, keeping up to date with COP29 will help to ensure their own long-term competitiveness while also helping to contribute to a sustainable future. Here, several of our ESG team will be able to help by reporting from some of the sessions at the conference, sharing insight on discussions, events and developments taking place. Look out on our LoupedIn blog for more news and check out our posts on LinkedIn for updates.

Footnotes

1 United Nations Climate Change, 'Signalling the beginning of the end for the fossil fuel era'

2 United Nations Climate Change, 'The Paris Agreement: what is the Paris Agreement?'

3 United Nations Climate Change, 'Signalling the beginning of the end for the fossil fuel era'

4 United Nations Climate Change, 'New funding for loss and damage'

5 United Nations Climate Change, 'New funding for loss and damage'

6 United Nations Climate Change, 'Enhancing global efforts to strengthen resilience'

7 Ibid

8 United Nations Climate Change, 'Linking climate action with nature conservation'

9 Ibid

10 United Nations Climate Change, 'Ramping up practical climate solutions'

11 Ibid

12 Ibid

13 World Resources Institute, 'What could the new Climate Finance Goal look like? 7 elements under negotiation'

14 The Lancet Planetary Health, 'Climate anxiety in children and young people and their beliefs about government responses to climate change: a global survey'

15 BBC News, 'As it happened: climate protests sweep the world' and 'School strike for climate: protests staged around the world'

16 For more information on the Mathur Charter case in Canada, see our article, 'Climate change litigation continues to simmer: Court of Appeal for Ontario remits Mathur Charter case back for rehearing'

17 United Nations, 'Biodiversity – our strongest natural defence against climate change'