As the world gears up for CoP 29, all eyes will be on Baku, Azerbaijan, where global leaders will converge to take stock of how far we have come, how to accelerate progress, and set targets (hopefully, more aggressive) for the future. The stakes are high, as we have experienced the devastating consequences of rising temperatures, extreme weather, and environmental degradation over the past year, in many parts of the world. This year’s summit is expected to focus on addressing the massive financing gap and setting more ambitious targets for the next round of NDCs. Of particular importance this year could be a sharpened focus on at least tripling global renewable energy capacity by 2030.CoP 29 is expected to push concrete action on climate finance, both to enable an accelerated trajectory to Net Zero and provide necessary financing for adaptation. In addition, the Loss and Damage Fund, which aims to help developing nations deal with climate-induced disasters, has received insufficient financial commitments so far. Without significant contributions from developed countries, vulnerable regions risk facing a future of increased climate-related devastation without the resources to cope. Private sector investment, particularly from global corporations, is seen as crucial in bridging this financial gap. CoP 29 is expected to pave the way for greater private-sector involvement in climate finance, ensuring funds for the above priorities.Renewable energy is expected to be at the forefront of the CoP agenda this time. Though the shift toward clean energy has gained momentum, the progress is not sufficient to meet the climate goals outlined in the Paris Agreement. To keep global warming below 1.5°C, CoP 29 could call for an annual addition of at least 1,000 gigawatts (GW) of renewable energy capacity—more than three times what is currently being installed. Policymakers, industry leaders, and environmentalists will explore ways to accelerate the adoption of solar, wind, geothermal, and hydropower projects, as well as long-term energy storage solutions and green hydrogen initiatives.The falling costs of renewable energy further strengthens the case for accelerated scale- up around the world. The cost of both solar and wind power have plummeted by more than 60% over the last decade, making it cheaper than fossil fuels in most regions. Moreover, with the improvement in cost and performance of battery storage technology, we are at the cusp of dispatchable renewable energy at costs that are competitive to lower than new fossil fuel based generation capacity. This creates a powerful incentive for nations to ramp up their renewable energy investments, not just to cut emissions but also to enhance energy security and reduce dependence on volatile fossil fuel markets. Leaders at CoP 29 should discuss how to remove barriers to financing, improve grid infrastructure, and streamline regulatory processes to make renewable energy accessible and affordable for all.
While renewable energy expansion is essential, CoP 29 will likely also tackle the often-overlooked issue of energy efficiency. Energy efficiency measures, such as improving building insulation, upgrading appliances, and adopting heat pumps, offer a fast and cost-effective way to reduce emissions. Doubling energy efficiency by 2030 could significantly lower the amount of renewable energy needed in the future, freeing up resources for other sustainability initiatives.
Another key issue is likely to be the operationalization of carbon markets under Article 6 of the Paris Agreement. Carbon markets, if managed correctly, can play a pivotal role in financing clean energy projects and reducing emissions. However, they have been on a slow path, with concerns over greenwashing and a lack of transparency. CoP 29 should aim to establish robust guidelines and governance structures to ensure that carbon markets are effective and contribute meaningfully to global climate goals.
As the world prepares for CoP 29, the message is clear: urgent and collective action is needed to stave off the worst impacts of climate change. The summit will be a litmus test for the international community’s commitment to climate action, with far-reaching implications for energy transitions, financial investments, and the future of the planet.
