In just a few days, world leaders, climate experts and policymakers from across the global climate ecosystem will gather in Baku, Azerbaijan for COP29.
Dubbed the ‘Finance COP’, the spotlight is on the urgent need to mobilise finance at a greater pace and scale to support climate action. COP29 will also set the stage for next year’s COP30, where countries will be required to present new, ambitious Nationally Determined Contributions (NDCs). However, making those plans a reality will be the hard part, requiring a new level of ‘uncommon collaboration’ across key economic sectors and the international financial community to deliver them.
A New Collective Quantified Goal (NCQG) on Climate Finance is to be agreed at COP29, which will replace the previous goal of mobilising $100bn a year of climate finance to developing countries. It is important that there are clear mechanisms for private sector participation and scale up of public-private partnerships in order to deliver this new target.
At COP29, we will be highlighting the critical role of the UK financial and related professional services industry in supporting delivery of the Paris Agreement, from forming impactful partnerships between the public and private sectors, mobilising climate finance, increasing climate resilience, to working globally to harmonise reporting and regulatory standards.
COP29 presents an opportunity for the UK to reposition itself as a leader in the global climate agenda. The Secretary of State for the Department of Energy Security and Net Zero is leading the UK's negotiations. This leadership from the top is bolstered by domestic announcements from the UK government and signalling that the UK will announce its new NDC at COP29.
Expectations for COP29
Reflecting on developments at COP28, recent climate forums and engagement with our industry, we expect attention at COP29 to be on:
- Negotiating the NCQG: We anticipate challenging discussions regarding the NCQG, however securing an agreement will be key to COP29's success.
- Encouraging countries to commit to ambitious and credible 2035 NDCs: Described as “among the most important policy documents so far this century”[1], COP29 will be a crucial moment to encourage governments to set out new ambitious NDCs that deliver a step-up in climate action.
- Progress on Article 6 of the Paris Agreement and the role of carbon markets: Lack of breakthrough at COP28 left carbon markets in a state of uncertainty for another year.
- Adaptation and resilience finance: Closing the adaptation finance gap is critical; COP29 provides an important opportunity to enhance support for countries most vulnerable to the risks and adverse impacts of climate change.
- Public-private partnerships and the role of Multilateral Development Banks (MDBs): We will highlight the important role that blended finance can play in de-risking and catalysing private capital.
Role of UK financial and related professional services at COP29
The UK's financial and related professional services industry will be an important voice at COP29, as a key enabler of the net-zero transition, a source of expertise and provider of capital.
To unlock the potential of our industry, it is important to engage with policymakers to design effective and innovative frameworks, tools, and mechanisms, to mobilise climate finance and deliver ambitious national climate commitments.
We look forward to engaging with those on the ground in Baku. We will report on key developments at COP29 and provide insights on the overall outcomes, setting the stage for COP30 in 2025.
[1] UNFCC (October 2024), 'New UN Climate Change Report Shows National Climate Plans ‘Fall Miles Short of What’s Needed', Available here: https://unfccc.int/news/new-un-climate-change-report-shows-national-climate-plans-fall-miles-short-of-what-s-needed
