All eyes on Baku

As we enter the final stretches of this year’s climate summit in Azerbaijan, the world is watching.

Now, it’s time for business and not brinkmanship. As UN Climate Change Executive Secretary Simon Stiell put it, as he addressed negotiators coming into the final days of COP29, urging global leaders to "cut the theatrics" and shift the focus on solutions towards achieving consensus over a new financial framework.

Yesterday, a new draft of the climate agreement was released. The draft outlines two different models for climate financing that are heading in very different directions. Disagreements remain over how much climate financing should be provided and who should ultimately bear the cost.?

With only one day left of negotiations and the disagreements spurring in Baku, the COP could very well go into overtime.?

However, COP29 in Azerbaijan was initially off to a flying start. On the opening day of the COP, negotiators ratified a framework under Article 6.4 of the Paris Agreement, establishing a UN-backed body to regulate international carbon credit trading. This decision is expected to unlock substantial climate finance, particularly benefiting developing countries. This was followed up by increased climate finance commitments, with the World Bank and European Investment Bank pledging to increase climate-related lending to USD 120 billion annually for low- and middle-income countries. Additionally, the Asian Development Bank added USD 7.2 billion in investments and a USD 3.5 billion program to combat glacial melt in Central Asia and the Caucasus. Finally, efforts were made to operationalise the Loss and Damage Fund, established at COP27, to provide financial assistance to nations affected by climate change.

Lars Aagaard, Denmark’s Minister for Energy, Climate and Utilities, arrived in Baku earlier this week looking to sustain momentum for global climate action, advocating for ambitious climate plans and follow-up on commitments made at COP28 — such as tripling renewable energy capacity, doubling energy efficiency by 2030 and accelerating the transition away from fossil fuels. Aagaard arrives at COP29 just hours after the dust has settled after Denmark’s announcement of the world's first carbon emission tax for agriculture.

From a business perspective, COP29 has once again underlined the commitment from both private organisations and financial institutions to the climate agenda. The Denmark Pavilion is proof of this. Showcasing green solutions and perspectives to more than 1,000 conference participants, ministers and VIPs, the pavilion has been home to over 40 packed events, discussions and talks over the last two weeks. New partnerships and collaborations have emerged, including an agreement between the World Business Council for Sustainable Development and State of Green to internationalise Denmark’s climate partnerships, positioning them as a model for global initiatives.

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Finn Mortensen

Executive Director, State of Green

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