New Finance Agreement Energizes COP29 Climate Efforts

News Desk 

Baku: Intense COP29 climate negotiations in Baku are entering their critical final phase, with high anticipation surrounding a new global climate finance target, the UN reported on Wednesday.

Delegates have been engaged in round-the-clock discussions, tackling pressing issues such as urbanization, transport, and tourism.

A key point of contention remains the source of the hundreds of billions—potentially trillions—of dollars needed for developing nations to adapt to rapidly changing climate conditions. Whether these funds should come from governments, multilateral banks, or the private sector continues to be debated.

A Double-Edged Sword

Urbanization has emerged as a central theme at COP29. According to the latest World Cities Report by UN-Habitat, billions of city dwellers could face an additional temperature increase of at least 0.5 degrees Celsius by 2040. Rapid urban growth, unplanned development, and the construction sector—responsible for 40% of greenhouse gas emissions—are exacerbating climate challenges.

Speaking at a ministerial meeting, UN-Habitat Executive Director Anaclaudia Rossbach warned of the risks posed by unplanned urbanization to biodiversity, food security, and social cohesion. She emphasized the urgent need for adequate funding and cooperation to address these issues.

“There is only one road to pursue—one that harmoniously addresses social, urban, and climate needs over a solid economic foundation,” said Rossbach, adding that land must fulfill both social and ecological functions to ensure sustainable development.

Emissions on the Rise

A new report by the UN Environment Programme (UNEP) revealed a worrying 1.3% increase in global emissions in 2023, contrary to the reductions needed to meet the 1.5°C warming limit. UNEP Executive Director Inger Andersen highlighted that 52% of global greenhouse gas emissions originate from just 25 megacities, including Shanghai, Tokyo, and New York.

“The actions you take—improving public transport, managing waste, and promoting energy efficiency—can make a massive impact,” Andersen told global mayors.

Tourism at COP29: A First-Time Focus

For the first time, COP discussions have formally included tourism, a sector contributing 3% of global GDP but also significantly affected by climate change.

“We need to recognize tourism as both a victim and a contributor to climate change,” Andersen said, urging stakeholders to address the sector’s carbon footprint.

Calls for Fair Climate Financing

Developing nations are pushing for fair climate financing mechanisms, with small island states and least developed countries demanding specific annual allocations of $39 billion and $220 billion, respectively.

“This is not charity; it’s a climate debt that must be paid,” said Sierra Leone’s Minister of Environment and Climate Change, Jiwoh Abdulai. “Our people are paying with their lives.”

Discussions have also raised questions about redefining what constitutes a ‘developing country,’ given the economic growth of nations like China and certain Gulf states since 1992.

Cecilia Kinuthia-Njenga of the UNFCCC emphasized the importance of flexibility and cooperation in multilateral negotiations.

The outcomes of the Baku talks will have far-reaching implications, particularly for the vulnerable nations most in need of climate action. Trillions of dollars in financing, decisive emissions cuts, and strengthened urban resilience are key to mitigating the worst impacts of climate change.

As Selwyn Hart, the UN Secretary-General’s Special Adviser on Climate Action, stated, “A revolution in renewable energy is underway, but the question remains: Will it happen fast enough to prevent the worst consequences and reduce inequality?”