Key Negotiation Outcomes at Azerbaijan's COP29

From 11 November 2024 to 22 November 2024, the 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change was hosted in Baku, Azerbaijan.  Bringing together global leaders, negotiators, and experts, high expectations were set to address the pressing challenges of climate change. Known as the “finance COP” for its historic adoption of a New Collective Quantified Goal (NCQG) on climate finance, COP29 sought to mobilise significant financial resources for climate action and finalise technical mechanisms that had been in development since previous conferences.

New Collective Quantified Goal (NCQG)

At the heart of COP29 was the ambitious NCQG on climate finance. In a clear departure from earlier commitments, developed countries agreed to mobilise at least U.S. $300 billion per year by 2035 for climate action in developing nations¹—a notable increase from the U.S. $100 billion target set at COP15 in 2009. This new target acknowledges that previous financial commitments have fallen short of what is required to support both mitigation and adaptation efforts in vulnerable regions. Recognising the remaining financing gap—estimated to be between U.S. $455 and $584 billion per year until 2030—the conference also introduced the “Baku to Belém Roadmap to $1.3T.” This roadmap outlines a strategic process designed to scale up public and private funding, including grants, concessional loans, and non-debt creating instruments, to achieve an overall target of at least U.S. $1.3 trillion per year by 2035. This integrated approach aims to streamline diverse funding sources and ensure that financial flows are aligned with the overarching goal of transitioning toward a low-carbon, climate-resilient future.

Carbon Market – Article 6 of the Paris Agreement

Complementing these financial commitments, COP29 made a significant breakthrough by finalising the technical guidance under Article 6 of the Paris Agreement, which governs international carbon markets. The new guidance establishes a dual-layer international registry system for tracking carbon credits—referred to as Internationally Transferred Mitigation Outcomes (ITMOs)¹—ensuring that emissions reductions are accurately accounted for and that double counting is avoided. Detailed rules now govern corresponding adjustments, which are essential accounting measures applied on both the selling and buying sides of a carbon credit transaction to reflect true emissions changes.

Furthermore, the refined framework includes explicit procedures for ITMO authorisation, reporting, and review, as well as standardised templates that facilitate transparency and consistency. The decision also finalises guidance under Article 6.4 for the Paris Agreement Crediting Mechanism, ensuring that credits from activities such as afforestation and reforestation are issued according to rigorous, globally recognised standards. These technical enhancements represent a significant improvement over previous, less-detailed frameworks, building confidence among market participants and providing a solid foundation for future carbon trading initiatives.

Baku Global Climate Transparency Platform (BTP) and Global Goal on Adaptation (GGA)

Since the Paris Agreement at COP21, the Enhanced Transparency Framework (ETF) was introduced. Parties to the Conference are required to submit Biennial Transparency Reports (BTRs) every two years, providing key information on their greenhouse gas inventories and the progression towards the Nationally Determined Contributions. Singapore, for instance has recently submitted an updated NDC in February 2025, announcing the reduction of carbon emissions to between 45 and 50 metric tonnes in 2035².

COP29 launched the BTP: a platform designed to support developing nations in the preparation and submission of their BTRs³. Currently, certain developing nations (Small Island Developing States, Least Developed Countries) can submit their BTRs on a discretionary basis. By assisting developing nations in preparing their BTRs, BTP’s primary objective is to encourage and facilitate universal participation in the ETF and global climate transparency. This enhances the tracking of climate change and identifies areas where further climate action and investments are required.

BTP will be progressively rolled out in two phases: the first phase to enable the delivery of BTRs in 2024, while the second phase aims to create a platform with targeted support for developing nations and the build up of universal participation in the ETF³.

On a similar parallel to climate mitigation, COP29 aims to build on the Paris Agreement’s Global Goal on Adaptation (GGA), serving as a global benchmark outlining the need for countries to bolster their efforts to adapt to climate impacts by strengthening resilience and reducing vulnerability. Adaptation is a key mechanism to support developing nations in overcoming the effects of climate change.   

With several frameworks established to follow up on the GGA, such as the Glasgow-Sharm el-Sheikh work programme (GlaSS) and the UAE Framework for Global Climate Resilience, COP29 builds on its predecessors by implementing the GGA as a standing agenda for future Subsidiary Body (SB) and Conference of Parties serving as the Meeting of Parties to the Paris Agreement (CMA) meetings beginning in June 2026.

This recognises the importance of adaptation as a key mechanism of climate change – protecting lesser developed nations and understanding contextual circumstances that goes beyond geography and policy instruments.

Further initiatives such as the Baku Adaptation Road Map and the Baku high-level dialogue on adaptation were launched to promote knowledge sharing, identify gaps in current adaptation strategies, and support the effective implementation of these resilience frameworks.

Fund for Responding to Loss and Damage (FRLD)

COP29 made critical strides in addressing loss and damage by fully operationalising the Fund for Responding to Loss and Damage (FRLD). With the World Bank agreeing to host the FRLD and the Philippines chosen as the host for its Board, this mechanism is poised to begin disbursing financial support in 2025¹. By providing timely assistance to countries facing severe and irreversible impacts of climate change—such as extreme weather events and long-term environmental degradation—the FRLD offers a lifeline to the most vulnerable nations, helping them recover without deepening existing economic challenges.

These comprehensive changes are crucial for mitigating climate change because they create a robust, structured framework that channels financial resources effectively while ensuring accountability and transparency. By establishing more ambitious financial targets and refining the technical rules governing carbon markets, COP29 has paved the way for enhanced investments in low-carbon technologies and climate resilience measures. The improvements in reporting mechanisms and adaptation support further enable nations to coordinate their efforts more effectively, leading to more informed policy-making and stronger international cooperation. Collectively, these reforms help reduce greenhouse gas emissions and equip countries to better manage the risks and impacts of a warming planet.

Renewable energy is central to this transformation, serving as the linchpin for a sustainable future. The shift from fossil fuels to renewable sources such as solar, wind, and hydropower is essential not only for reducing global carbon emissions but also for enhancing energy security and fostering economic growth. Renewable energy systems produce little to no greenhouse gases, thereby lowering atmospheric carbon emissions and mitigating climate change. As investments in renewable energy continue to grow—supported by enhanced climate finance and transparent market mechanisms—the global community is better positioned to achieve a resilient, low-carbon future that benefits both people and the planet.