Against all odds, the Baku Climate Summit has ended with agreement among the almost 200 countries present. Although, as often happens, no one is entirely happy with the agreement reached at COP29. These are the key points agreed upon:Money for poor countries The countries finally agreed to set at 300 billion annually the amount that developed countries will have to contribute from 2035. The objective is to help developing economies make a transition to clean energy and to adapt to the worst impacts of rising global temperatures. And the funds will be provided, above all, through grants and low-interest loans. It is an amount significantly less than what vulnerable countries were demanding: up to 1.3 trillion dollars annually. Throughout the negotiations, the group of underdeveloped countries, grouped in the G77 and China, came to lower the goal to “at least” 500 billion dollars annually, without success. Related News standard No Developed countries will contribute 300,000 million a year for climate financing Isabel MirandaHowever, the final text recognizes the need for the financing figure to rise to 1.3 trillion and it will be evaluated whether the financing advances. Where will that money come from? In principle, from private investors and other possible bilateral agreements. The possibility of introducing new taxes on fossil fuels, aviation or maritime transport that could serve as a new source of global financing in the future is also being studied (although there is no agreement on this matter). China frees itself from providing mandatory funds. Negotiators have not managed to get large emerging economies like China to move to the other side of the board. That is, they begin to be countries forced to financially help the third world. Their contributions to the energy transition of third countries will be only voluntary. The position of the EU or the United States has been clear for several climate summits: there are large economies that until now have not contributed to climate financing that must begin to do so. This is the case of China, currently the largest emitter of CO2 in the world; but also some states with consolidated economies thanks to fossil fuels, such as the Gulf countries – Saudi Arabia, the United Arab Emirates, Qatar and Kuwait -. Carbon markets The Baku Climate Summit has also approved the launch of a market global carbon emissions under UN standards as well as standards for bilateral emissions trading between countries. It has taken the international community almost a decade to launch carbon markets, which will be used to offset emissions or obtain funds. There are still some minor details to be worked out, such as the registry structure and transparency obligations, but it could help countries implement their climate plans more quickly and cheaply, reducing emissions. Estimates suggest that this market could be worth $250 billion a year by 2030, offsetting an additional 5 billion metric tons of carbon emissions annually. Carbon credits are created through tree reforestation projects or the construction of wind farms in a less developed country. For every metric ton of emissions absorbed from the atmosphere, a carbon credit is generated that countries or companies can purchase. Without explicit mention of fossil fuels Last year, at the Dubai Summit, countries committed to leaving behind fossil fuels, oil, gas and coal. It was considered a historic moment, since throughout three decades of climate negotiations this point had never been reached. However, in this year’s declaration, this explicit mention has disappeared from the texts, along with the goal of tripling renewable energy by 2030 and doubling energy efficiency by the same year. The only thing that has remained is a ‘distant’ recognition of the existence of said agreement last year and continuing to work on it. Many negotiators and countries have criticized this point, driven especially by Saudi Arabia, which has blocked talks on this point. However, the real test will be in 2025, when countries must present their new emissions cutting and energy transition plans to the UN.
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