Climate 411

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

By Christopher Dekki / Published: November 18, 2024

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.  

Making moves on carbon credits  Read More »

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Climate Finance and Accountability at COP29

By Leslie Labruto / Published: November 14, 2024
COP29 sign in Baku

COP29 sign in Baku. Photo by UNclimatechange via Flickr

 

Today, November 14, is Finance Day at COP29. We caught up with Leslie Labruto, EDF’s Managing Director for Sustainable Finance, about what she’s watching for at COP29, the United Nations’ climate change talks in Baku, Azerbaijan. Follow Leslie on LinkedIn.

Q: You’re in Baku for COP29. What key issues are on your radar?

A: The spotlight here this year is on scaling up climate finance for developing countries, and a need for redoubled global cooperation to achieve our shared climate goals. My team and I, along with the rest of the +Business team at EDF, are laser focused on working with the private sector to ensure climate and nature wins. A major focus at COP will be the establishment of a climate finance goal, called the New Collective Quantified Goal (NCQG), which will replace the $100 billion annual commitment that high-income countries pledged to deliver under the Paris Agreement. The NCQG could reach at least $1 trillion a year—a figure that better aligns with the financial gap that needs to be closed to address the climate crisis.

Developing countries need these funds to tackle climate change, transition to clean energy, and adapt to the impacts of climate change, and it’s crucial that the finance be provided in a way that’s just, equitable, and effective. Let’s not forget that those ‘wins’ in developing countries are good for everyone everywhere, since climate impacts are felt globally. Successful climate finance means more forests still standing, a larger climate workforce, more resilient food systems, more methane abated, and greater global renewable energy capacity. Because climate-related investments are needed to meet global goals and address inequitable impacts from past emissions, low-income borrowers should have access to concessional finance. The NCQG will not only scale up ambition but also support countries as they prepare to submit their updated climate commitments in 2025.

Q: You’ve emphasized both the quantity and quality of climate finance. What do you mean by “quality”?

A: While the amount of climate finance is essential, its effectiveness — its quality — is equally important. When we talk about quality, we mean ensuring that climate finance is structured to be concessional, accessible, and impactful. In the private sector, finance is tracked with metrics like profits and losses that communicate shareholder value. In climate finance, however, there is less accountability in terms of impact metrics.

Climate finance should leverage public and private investment to make rapid progress toward net zero emissions and benefit local communities. To make sure financing achieves this, we need a system that is accountable for being easy to access, impactful in tackling climate-related challenges, and affordable for borrowers.

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At COP29, Article 6 must deliver on urgent finance for forests and Indigenous communities

By Pedro Martins Barata and sagarcia / Published: November 13, 2024

This blog was authored by Pedro Martins Barata, Associate Vice President, Carbon Markets and Private Sector Decarbonization and Santiago García Lloré, Senior Manager, IPLC & Conservation Partnerships, Forests

UN Climate Change, Kamran-Guliyev/ Flickr

At the start of COP29, negotiators in Baku secured a major breakthrough by agreeing on new standards for a UN-led global carbon market under Article 6 of the Paris Agreement, potentially unlocking billions in funding for climate projects.

But the terms of the standards are still flexible, meaning there’s a real chance to shape them to make sure the money goes where it’s needed most – like Indigenous Peoples and local communities who are fighting to conserve the planet’s last intact forests, known as high forest, low deforestation (HFLD) regions.

The stakes are higher now than ever, especially after the recent US election, which casts doubt on future public climate funding from one of the world’s biggest economies. In this uncertain landscape, carbon markets must step up to fund critical climate solutions, especially nature-based projects like forest conservation.

Read More »

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From Cali to Belèm: Finding Common Ground for Nature and Climate

By Milloni Doshi and Annie Mark / Published: November 8, 2024

This blog was authored by Milloni Doshi, Project Manager, Global Engagement and Partnerships and Annie Mark, Senior Director, Global Partnerships.

Photo by Milloni Doshi at COP16

The Conference of the Parties (COP) of the UN Convention on Biological Diversity (CBD) is a global meeting focused on conserving nature. Unlike the United Nations’ larger annual climate conferences, CBD meetings are usually smaller and have a specific focus: conserving and restoring biodiversity. In 2022, countries adopted the Kunming-Montreal Global Biodiversity Framework (GBF), a landmark plan aimed at halting and reversing biodiversity loss by 2030. Many call it the “Paris Agreement” for nature.  

This year’s COP16 took place in Cali, Colombia and was the largest yet. Although discussions moved slowly and ended without a final agreement, COP16 sparked important conversations about how nature and climate are deeply connected. This was a positive development on the “Rio Trio” —a partnership between the leadership of the UN three conventions on biodiversity, climate, and desertification. These pathway ideas may help shape future climate talks, including next week’s COP29 in Baku, Azerbaijan, and COP30 next year in Belem, Brazil.  

Pathway 1: Recognizing Indigenous Peoples and Local Communities (IPLCs) and Their Vital Role Read More »

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Beyond numbers: strengthening climate finance through evidence-based impact

By Juan Pablo Hoffmaister / Published: November 8, 2024

As countries discuss a new goal on climate finance at the UN climate conference, COP29, we have an opportunity to boost the impact of every dollar we invest in climate action.  

In climate finance, impact represents the measurable, positive outcomes achieved through climate action—determined by tracking specific metrics like emissions reductions, adaptation results, co-benefits, and the timeliness of fund disbursement. In a recent report on quality climate finance, we argue that we need better evidence to ensure every dollar of finance has better climate impact.  

To measure impact well, we need measurable ways to track contributions to national climate plans (called Nationally Determined Contributions (NDCs), capture both immediate and long-term transformational change, enable learning for future interventions, and help identify scalable successful approaches.  

The evidence gap  Read More »

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Closing emissions gap with 2025 NDC Revisions: Critical Opportunities for Climate Action

By Juan Pablo Hoffmaister / Published: October 28, 2024

The UNEP Emissions Gap Report 2024 presents stark findings on the state of global climate action. Current pledges would only reduce emissions 4-10% below 2019 levels by 2030 – far short of the 42% reduction needed to limit warming to 1.5°C. These gaps are corroborated by the Nationally determined contributions under the Paris Agreement Synthesis report by the UNFCCC secretariat, which noted that “bolder new climate plans are vital to drive stronger investment, economic growth and opportunity, more jobs, less pollution, better health and lower costs, more secure and affordable clean energy, among many others benefits.”

While these gaps are alarming, we have the solutions to address them. In fact, the report reveals a crucial window of opportunity as countries prepare their next Nationally Determined Contributions (NDCs) for submission in 2025. Through immediate, decisive action on NDCs, we can bridge the gap and put ourselves back on track to 1.5. 

Reflecting on the report recommendations, these are three strategic areas to help bridge the gap in countries’ updated NDCs:  

  • First, comprehensive investment planning must become central to NDC development. Countries should include detailed project pipelines that identify specific, bankable projects aligned with sectoral transformation pathways. These plans should outline clear implementation timelines, risk mitigation strategies, and resource requirements. Critically, they must demonstrate how public finance can leverage private investment at the necessary scale.  
  • Second, NDCs must strengthen coverage and transparency across all sectors and gases. Particular attention should focus on methane emissions, where rapid reductions could have immediate climate benefits. Many countries have encouragingly incorporated methane into their NDCs – the 2024 NDC synthesis reports suggests that 91% of parties cover methane within their mitigation targets. However, only 5% of parties have specific quantified methane targets, demonstrating a significant area for improvement. 
  • Third, countries must reimagine climate finance through a just transition lens. This means moving beyond simple volume targets to emphasize finance quality: its accessibility, predictability, and alignment with development priorities. For developing economies, which require an eight to sixteenfold increase in climate investment by 2030, NDCs should clearly distinguish between unconditional actions and those requiring international support. They should also outline specific measures to ensure transitions benefit vulnerable communities and workers. 

Elements for NDC enhancement in 2025

The upcoming NDC revision cycle is a rare opportunity to fundamentally reshape climate ambition and action. By focusing on these three areas – comprehensive investment planning, enhanced sectoral coverage and transparency, and quality climate finance for just transitions – countries can develop NDCs that not only raise ambition but also chart practical pathways for implementation. 

The solutions and financing approaches exist to close the emissions gap. What’s needed now is the political will to deploy them at unprecedented speed and scale through this critical NDC revision process. 

 

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