#COP29 Delivers Deals on Finance and Carbon Markets Amid Controversy and Challenges
Joanna Buczkowska-McCumber
Helping Companies Grow in the Climate Future | B Corp CEO | Impact and ESG Strategist | Lecturer | Podcast Host
November Impact Brief #COP29 Deep Dive
The highly criticized COP29 in Baku, Azerbaijan has come to an end this past weekend, leaving behind a mix of tempered achievements and growing disillusionment with COP summits and a divided global motivation for tackling climate change. Negotiators landed deals on long-debated issues, including a new $300 billion annual climate finance target by 2035 and the operationalization of a global carbon trading market under the Paris Agreement. These outcomes were needed as critical steps forward but criticized by many, especially representatives of developing nations, as woefully insufficient to meet the scale of the climate crisis.
The climate finance agreement, while an increase from the current $100 billion annual target, falls dramatically short of the $1.3 trillion many developing nations had called for to address decarbonization, adaptation, and loss and damage. The result was labeled a “travesty of justice” by some negotiators, with accusations of rushed decision-making and backroom deals eroding trust in the process. Despite the incremental gains, developing countries, small island nations, and climate activists decried the deal as “insultingly low,” highlighting the stark disparity between climate-vulnerable nations' needs and the financial commitments on the table.
Similarly, the carbon trading agreement, which introduces international standards for trading carbon credits, was seen as a required move to fully operationalize the Paris Agreement. Yet, concerns about the integrity, transparency, and efficacy of these mechanisms persist. Critics worry that without stringent safeguards, the system could allow emissions to continue unabated while creating an illusion of progress.
Meanwhile, fossil fuels—the elephant in the room—once again escaped explicit mention in the final documents, as oil-rich nations successfully watered down commitments to phase out their use. Activists and representatives from vulnerable nations expressed outrage at the lack of ambition, emphasizing that without clear action on fossil fuels, any progress made will remain insufficient. Its no surprise given given that a staggering number of 1,773 fossil fuel lobbyists has been granted access to COP29.
The summit’s outcome reflects the broader struggles of global climate negotiations: balancing geopolitical divisions, economic realities, and the existential need for transformative action. While COP29 avoided diplomatic collapse and kept the multilateral process alive, it underscored the gap between rhetoric, reality, and corporate pressure in addressing the climate crisis.
As attention shifts to COP30 in Belém, Brazil, next year, the stakes remain high. For climate-vulnerable nations, the call is clear: commitments must translate into immediate, tangible action, or the trust underpinning these global negotiations may collapse under the weight of unmet promises.
And for business the finalized carbon trading rules and expanded climate finance target signal (through resistance) a world still slowly moving toward economic models that prioritize sustainability, but also expose the fragile trust and uneven commitments underpinning this transition. This creates a dual challenge: adapting to the shifting regulatory and economic landscape while critically evaluating their own role in contributing to—or alleviating—the systemic risks of climate change.
The outcomes of COP29 raise a fundamental question for companies: Are their current strategies built to align with this rapidly evolving global agenda, or are they still rooted in incrementalism and outdated paradigms?
The criticism of insufficient ambition at COP29 echoes a sentiment that resonates with consumers and stakeholders—one that demands authenticity, measurable impact, and a shift from rhetoric to action for businesses across the board.
This is not just about compliance or keeping pace. The opportunity is in our hands to rethink the relationship between business and society, to explore how capital, innovation, and influence can work together to address challenges like decarbonization, adaptation, and resilience - but we have to step into the opportunity instead of resisting it and playing in tune to the political winds. Progress will not come from waiting for perfect conditions or flawless agreements - despite what happened at Baku we all must continue to take action on climate change and not wait for others to fix the problem that we all stand in front.
A question to ask oneself as a business or leader in the marketplace: How will I//How will my company/fund/organization contribute to solutions that the world so clearly demands, and what legacies do I/we want to leave behind?
Outcomes
Climate Finance Target: Countries agreed to increase climate finance to $300 billion annually by 2035, aiming to support developing nations' transition to renewable energy and climate adaptation. However, the aspirational target of $1.3 trillion fell short of the $400–$900 billion many experts say is required, sparking criticism from developing countries.
Global Carbon Market Rules: Finalized Article 6 rules for international carbon trading, enabling countries to trade carbon credits to meet Paris Agreement goals. While this opens pathways for renewable energy projects, concerns linger over the integrity and transparency of these trades.
Gender and Climate Program Extension: The Gender Action Plan, established under the UNFCCC, was renewed at COP29 to ensure gender equality in climate policies. It focuses on empowering women in decision-making roles and ensuring equitable benefits from climate action. This extension underscores the recognition of women as key stakeholders in tackling climate challenges, particularly in vulnerable regions.
Support for National Adaptation Plans: Approved additional support for the least developed countries to create and implement plans that address their unique climate risks and build resilience.
Mixed Ambition on Emission Targets: Countries were required to update their Nationally Determined Contributions (NDCs) under the Paris Agreement, leading to mixed outcomes. The UK announced an ambitious target of cutting emissions by 81% by 2035, while Brazil and the UAE announced modest targets paired with plans to expand fossil fuel production. Many countries deferred major announcements until the February 2025 deadline
No Progress on Fossil Fuel Phase-Out: Despite last year’s COP28 mention of transitioning from fossil fuels, COP29 failed to advance this issue whatsoever. Oil-rich countries like Saudi Arabia, Russia, China and India resisted including fossil fuels in the outcome document. The United Arab Emirates—the host of COP28—was criticized for its plans to increase fossil fuel output by 34% over the same period.
Loss and Damage Fund Contributions: Countries, including Australia, pledged new contributions to the fund established at COP28 to aid nations recovering from climate disasters. However, the total commitments remain a fraction of the actual need.
Future Roadmap: COP29 stage for COP30 which will be held in Brazil to address unresolved issues, including scaling up climate finance, finalizing carbon market mechanisms, and increasing ambition for emission reductions. Nations will also need submit updated climate targets by February 2025.
You can watch the closing plenary right here
Stories for the Summit
Climate Summit Negotiations - New York Times
Controversial Deal - NPR
COP Walk outs - BBC
Five critical issues left hanging after COP29 - The Conversation
The perfect novel for the climate summit - New York Times
Turning back progress at the climate summit - Bloomberg
COP29: What are NDCs and why do they matter? - World Economic Forum
Other News in Business and Sustainability
Turning point in ESG and Climate Disclosure Policies - Carbon Credits
Global Sustainability Survey Companies report Progress While Public Demands Faster Action - Business Wire
Peloton is a B Corp - Business Cornwall
A More Grown Up Impact Investment Space - New Private Markets
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