Day 4 of COP 29 in Baku was marked by pivotal discussions on climate finance, loss and damage, and carbon markets as countries pushed forward with critical negotiations aimed at advancing global climate action.
Key Highlights:
- Climate Finance
Delegates emphasized the need to improve and expand climate finance mechanisms to better support developing countries. Current efforts were assessed against previous commitments, with calls for more equitable funding channels. COP 29 aims to advance financial accessibility by setting new, more achievable targets for the Nationally Determined Contributions (NDCs) planned for 2025, which are essential to fulfilling the Paris Agreement goals. These new targets also align with the updated Global Stocktake, which tracks collective progress every five years. - Loss and Damage Fund Implementation
Loss and damage—the concept of addressing irreversible harm from climate change—remains a focal point. Established at COP 28, the Loss and Damage Fund seeks to provide financial assistance to nations facing extreme climate-related adversities, like floods and wildfires. The fund is slowly building, with ongoing discussions at COP 29 to increase commitments beyond the initial $700 million pledged. This is a critical next step, as developing countries bear disproportionate losses from climate events. - Adaptation and Carbon Markets
Adaptation financing, essential for building resilience in vulnerable nations, was also reviewed. The UN aims to double the adaptation finance amount by 2025, but with adaptation needs increasing yearly, COP 29 calls for adaptive financing terms that ensure affordability and flexibility for high-risk regions. Additionally, carbon market mechanisms, governed by Article 6 of the Paris Agreement, were debated as tools for incentivizing emission reductions across borders, aiming for a more interconnected approach to offset climate impacts
As discussions continue, COP 29 underscores the necessity of inclusive policies, a just transition from fossil fuels, and improved adaptation funding—key elements to achieving climate stability.