What to watch in week 2 of COP29, from the finance conversation to critical sectoral action

This blog was authored by Christopher Dekki, Manager, Global Engagement and Partnerships.

Hopefully, COP29 delegates savored every moment of the rest day here in Baku because week 2 is already off to a hectic start. As deep divides within the negotiations remain unbridged, Azerbaijan, the newly minted COP29 Presidency, will need to increase its efforts to ensure consensus within the process and deliver a meaningful outcome.  

Little progress made on the climate finance goal 

The core outcome of this COP, a New Collective Quantified Goal (NCQG) on Climate Finance for developing countries, stands on shaky ground as massive disagreements between the Global North and South are making it difficult for negotiations on the substance of the goal to take place in earnest. Nevertheless, the result of this process will have major implications for the ability of developing countries to transform their economies and societies and realize more ambitious climate action. With finance needs estimated to be $2.4 trillion per year by 2030 in developing countries alone, the COP negotiators must urgently step up action in this arena.  

While a great deal of attention has been placed on the quantity of money that should be provided, EDF has entered the finance fray by advocating for greater attention to quality – going beyond the raw numbers and ensuring systems are put in place to make the most of every dollar spent on climate action. It is critical for delegates to work together during week 2 to break the deadlock, and deliver a climate finance goal that is concessional, accessible, and impactful. The good news is that the latest text includes many provisions taking us in this direction, laying out options that can lay the foundation for better finance, and thus better outcomes for the climate. We need negotiators to come together around the best solutions.  

• For more on this topic, read EDF’s latest report on climate finance quality: “Quality Matters: Strengthening Climate Finance to Drive Climate Action”.  

Making moves on carbon credits 

At the past few COPs, negotiators have made little progress on the ins and outs of the carbon crediting mechanism of the Paris Agreement, outlined in Article 6. In stark contrast to previous COPs, which ended with no outcomes on this front, COP29 opened with the immediate adoption of a decision. While concerns were raised regarding the lack of transparency in the lead up to this result, the new rules around Article 6.4 of Paris could help bolster the potential of carbon markets, making them more effective and trustworthy.  

Certainly, this decision is not the end of the road, and there is more work to be done, both at COP29 and beyond. Still, it seems the stage is set for an increase in activity in the international carbon market.   

• For more on this topic, read EDF’s blog on the decision adopted at the start of COP29: “At COP29, Article 6 must deliver on urgent finance for forests and Indigenous communities”. 

Enhancing ambition on the road to COP30 

Beyond finance and markets, we need to see negotiations coalesce around how countries can boost their ambition to reduce climate-warming emissions in week 2. Currently, negotiators disagree on how best to realize the key elements of the Global Stocktake. While the Global Stocktake, which concluded at COP28, provided a comprehensive assessment of what needs to be done to avoid the worst impacts of climate change, finding common ground in a complex multilateral environment remains difficult. For this reason, efforts outside of the negotiations must be stepped up to ensure continued climate action. Examples include:  

1. Making the most of methane abatement – The Oil and Gas Decarbonization Charter (OGDC), launched at COP28, can assist in the acceleration of the decarbonization of the oil and gas industry, and support these entities with non-CO2 emissions, like methane. With EDF playing a central role in continued efforts around the Charter, coupled with the data collected by MethaneSat, quick wins can be achieved in the near term, while also working towards a more comprehensive energy transition.  
2. Amplifying the voices of indigenous peoples and local communities (IPLCs) – Indigenous peoples are an essential stakeholder in the fight for a nature positive future. For this reason, EDF will continue to amplify their voices, particularly in efforts around reducing emissions from deforestation and forest degradation (REDD+), and work closely with Brazil as the incoming COP30 Presidency to enhance their overall engagement. COP29 is building on successes for IPLCs from the UN Convention on Biodiversity COP in Colombia in October and increasing the momentum to allow these groups to better access the finance they need for their continued leadership on the road to COP30 and beyond.  
3. Increasing finance flows to farmers – Food systems are responsible for a third of emissions, meaning it is important to get this sector right, to protect farmers, nature, and the ability to sustainably feed the world. Deliberations around climate finance must take food systems into account, and EDF is engaging with key institutions and stakeholders like the FAO to help get finance right.  
4. Catalyzing private sector action – Business must be part of the solution and should engage meaningfully in climate action. For this reason, the wider UNFCCC Action Agenda, primarily under the Race to Zero campaign, is mobilizing private sector actors to contribute to a sustainable future, changing business models and transforming supply chains. EDF will continue to work with partners in the business community to align with Paris Agreement objectives and put their companies on track towards a more sustainable future.  

So, roll up your sleeves COP29 delegates and let’s get to work!