News and Insights
COP29 Opens in Baku Amid Warnings, Financial Demands, and Political Tensions
November 13, 2024
The 29th Conference of the Parties (COP29) opened in Baku with a stark message from the United Nations: the ambitions of the Paris Agreement are “in great peril,” as 2024 is on track to break temperature records, threatening lives, economies, and global stability. The UN’s World Meteorological Organization (WMO) reported that the period from 2015 to 2024 will likely be the warmest decade recorded, with evidence of rapidly shrinking glaciers, rising sea levels, and catastrophic weather events.
WMO’s Celeste Saulo underlined the urgency of climate action, stating, “Every fraction of a degree of warming matters. Whether it is at a level below or above 1.5°C, every additional increment increases climate extremes, impacts, and risks.” As global leaders gathered for COP29, WMO warned that atmospheric greenhouse gases reached new highs in 2023, setting humanity on an uncharted and dangerous course.
Calls for Robust Climate Finance: Not Charity, But Necessity
One of the critical themes emerging from COP29 is the push for a substantial increase in climate finance, particularly for poorer nations. UN Climate Change Executive Secretary Simon Stiell emphasised that climate finance must be viewed as a shared investment in global stability, not charity. “Let’s dispense with the idea that climate finance is charity,” Stiell remarked, underscoring the need for a robust system that grants nations the “fiscal space they so desperately need” to combat and adapt to climate impacts.
COP29 aims to secure a commitment of $1 trillion per year to support developing countries in reducing emissions, recovering from climate disasters, and transitioning to sustainable economies. However, Stiell cautioned that this is “only a fraction” of what is at stake should global leaders fail to act. For many, this massive financial ask represents one of the most ambitious demands for support in COP history.
The Climate Debt: A Call for Accountability from the Global North
Environmental advocates also raised the concept of a “climate debt” owed by wealthier nations to the Global South, framing the issue as a responsibility of rich countries who gained prosperity through fossil fuel use. Tasneem Essop, executive director of Climate Action Network, voiced the demand for a $5 trillion “down payment” on this debt. “Rich nations prospered by burning fossil fuels and now need to fund poorer nations to avoid the same path,” she said, calling the demand “a down payment of a very large debt”.
Essop highlighted the availability of funds, criticising governments that claim financial constraints. “They found the money for military spending. They found the money to subsidise the fossil fuel industry. To come here and say that they do not have money is absolutely untruthful and unacceptable,” she stated. Essop warned that without a meaningful commitment to financial support, trust among nations would erode, affecting other key climate negotiations on emissions reduction and equitable transition measures.
Windfall Profits and Subsidies: Fossil Fuels’ Grip on Global Finance
The fossil fuel industry’s role loomed large on COP29’s opening day, with a report highlighting that oil and gas companies enjoyed $490 billion in excess profits during 2022 due to spiking oil prices from geopolitical conflicts. Florian Egli, who led the study at the Technical University of Munich, said, “There is plenty of potential funding out there in the hands of the fossil fuel companies that helped create” the climate crisis, urging leaders to consider a windfall tax.
The findings reveal that while some countries have imposed modest windfall taxes, these fall short of addressing climate action needs. The oil and gas industry, supported by significant subsidies, has generated about $1 trillion in profit annually over the past 50 years. Rich nations, the report noted, have poured $2.7 trillion into domestic fossil fuel subsidies from 2010 to 2022, funds that many advocates argue should instead support climate action in vulnerable countries.
Political Shadows: Trump’s Return and Azerbaijan’s “Greenwashing” Accusations
The re-election of Donald Trump has cast uncertainty over the United States’ climate commitments. During his previous term, Trump withdrew the US from the Paris Climate Agreement and rolled back numerous environmental protections, moves he has pledged to revisit. Indigenous organiser Jacob Johns called Trump’s return “devastating,” particularly for marginalised communities, while other activists urged wealthy countries to compensate for any shortfall in US support.
Azerbaijan, hosting COP29, also faced accusations of “greenwashing.” Critics, including Greta Thunberg, condemned Azerbaijan’s reliance on fossil fuels and its human rights record, accusing the nation of using COP29 to advance fossil fuel interests. “Azerbaijan’s entire economy is built on fossil fuels…Despite what it might claim, Azerbaijan has no ambition to take climate action,” Thunberg wrote, pointing to recent multi-billion-dollar oil deals signed by Azerbaijan’s state oil company.
Moving Forward: The Stakes of COP29
With higher stakes than ever, COP29 leaders face mounting pressure to address critical climate finance issues, emissions reduction, and global accountability. The opening discussions reflect both the financial and political complexities that define the climate crisis. Still, as Simon Stiell reminded delegates, the goal is nothing short of global cooperation: “An ambitious new climate finance goal is entirely in the self-interest of every nation, including the largest and wealthiest.” COP29 represents an urgent opportunity for global leaders to address the climate crisis at its root and secure a sustainable future for all.
POSTED BY: Chris Nial
