COP29 Dispatch - November 14, 2024
Environmental and Energy Study Institute (EESI)
Ideas. Insights. Sustainable Solutions.
Welcome! Today is finance, investment, and trade day at COP29.
Attendees were seeing green on the fourth day of COP29, which anecdotally holds a record for the most times “private sector investment” was uttered. Today’s events covered incentives for private sector investments, adaptation finance, investments in emerging climate solutions, the benefits of Inflation Reduction Act (IRA) tax incentives for foreign countries, and more.
Meanwhile, U.S. speakers continued to highlight the strong climate efforts at the subnational level, from cities to states to companies, and how these actors will continue to drive change, regardless of the direction of federal climate policy.
Brazil, the host of COP30 next year in Belém, submitted its third nationally determined contribution (NDC) yesterday, setting an example for others to follow. The UAE and the UK have also presented new NDCs. Azerbaijan is expected to do so during COP29.
If you are in Baku, catch up with EESI President Daniel Bresette and Policy Director Anna McGinn! To connect, email Anna at [email protected].
Come visit us at Exhibit Booth 23 in Area B of the Blue Zone.
Missed yesterday’s edition? Check it out here. We are also compiling key COP29 announcements throughout the conference—check back for updates.
Getting lost in the COP lingo? Check out EESI's glossary of terms and other helpful guides in the Resources section! Looking for more information? Reach out to Anna at [email protected].
Coming up
Join EESI tomorrow, November 15, for a press conference on U.S. Perspectives from the UN Climate Summit. Speakers include:
Key Takeaways for Congress
Negotiations
On the NCQG: Negotiators worked late into the night yesterday to release a second iteration of draft text on a new collective quantified goal on climate finance (NCQG). This text has been accepted as a basis for negotiations, but it still hovers close to yesterday’s 34 pages, worrying leaders. European Union leaders sat down for a press conference to discuss progress on the issue. Jacob Werksman, lead negotiator and representative for the European Commission, reported that countries are still “significantly far apart” on NCQG design—on its structure, on the extent to which it should rely on public finance, on how to catalyze private sector finance, on which countries should join the existing contribution base of developed countries, and on the dollar amount itself, or “quantum.” For additional updates on the negotiations, see the Earth Negotiations Bulletin’s daily report (detailed summary) and highlights (quick overview) posted each evening of COP.
U.S. Updates
States take the IRA baton: An America Is All In discussion between Washington State Gov. Jay Inslee and White House National Climate Advisor Ali Zaidi covered the lasting impacts of the IRA and Infrastructure Investment and Jobs Act, as well as the work of state and local governments to keep up the momentum. Although the federal government delivered the IRA, Zaidi said, for “durability, irreversibility, and momentum,” local governments, tribal leaders, and nonprofits should help spread IRA benefits to the power, transportation, industry, agriculture, and manufacturing sectors in the next administration to ensure these investments’ longevity. Zaidi also advised IRA supporters to promote the law’s community benefits and support of middle-class jobs. Gov. Inslee assured the audience that “once you have job creation in a Congressional district,” that member of Congress, whether Democrat or Republican, “will fight like hell to keep them,” adding that “it’s too late for [the next administration] to unwind this progress.” He also touted the widespread local support for Washington State’s Climate Commitment Act, which has catalyzed climate investments and job creation in the state.
Building better: The Subnational Climate Action Leaders’ Exchange launched the Zero Emissions and Resilient Buildings (ZERB) Accelerator to encourage multilevel collaboration focused on reducing operational and embodied emissions from the buildings sector and bolstering climate resilience of the built environment. The ZERB Accelerator will work in conjunction with the Buildings Breakthrough (announced at COP28) and the Global Alliance for Buildings and Construction (announced at COP21). Maryland, Washington State, and Bogotá, Colombia, are the first subnational jurisdictions to participate in this new initiative.
The IRA studies abroad: A U.S. Center event highlighted how international players can benefit from IRA tax incentives, with a focus on the Section 45X advanced manufacturing credit. Joseph Nganga of the Global Energy Alliance for People and Planet discussed the law’s importance in Africa, where tax incentives for U.S. companies have made clean energy technologies more affordable in African markets. Nganga also said that IRA-driven clean energy demand in the United States has paved the way for green hydrogen generation in Africa.
It takes two: In a U.S. Center discussion, Assistant Secretary for International Trade and Development for the Department of Treasury Alexia Latortue highlighted the Global Emerging Markets (GEMs) Risk Database, which was released last month and provides prospective private sector investors with essential project data. She also noted the progress of the Just Energy Transition Partnerships, through which the United States supports energy transitions in Indonesia and Vietnam via public-private partnerships.
New industrial revolution: A U.S. Center event assembled leaders from across U.S. industry and trade to discuss new clean energy projects being deployed at home and abroad. One official from the U.S. Export-Import Bank, which has a Congressional mandate to support environmentally-beneficial exports, announced that in fiscal year 2024, the agency more than doubled its clean energy and climate-friendly exports and made a record $2.3 billion in clean energy investments. Industry representatives showcased U.S.-backed projects such as design standardization of small modular nuclear reactors for easy replication and fast deployment, and “seamless incorporation” of readily-deployable methane reduction practices into oil and gas operators’ business models.
America stays all in: At the America Is All In pavilion opening event, panelists from private and public sectors discussed their ambition and commitment to climate leadership, regardless of who the U.S. president is. Barry Parkin, chief procurement and sustainability officer at Mars, Inc., highlighted that corporate action is just as essential as national action, and can occur regardless of legislation. “If you could get the 1,000 biggest companies on the road to net zero, it wouldn’t matter what governments were doing,” he said.
NDC in the front seat: An America Is All In pavilion event focused on the U.S. 2035 NDC and the importance of “all-of-society action.” Ryna Cui, acting director of the University of Maryland’s Center for Global Sustainability, discussed the center’s report, Toward 2035: Forging a High-Ambition U.S. Climate Pathway. Cui explained that even if the federal government repeals recent climate legislation or rolls back regulations, non-federal actors sustaining and enhancing climate action could still achieve 48% emissions reduction by 2035.
Impactful partnerships for climate resilience: During a busy opening day at the America Is All In Action Center, experts from federal and local government and the private sector gathered at an event focused on building tailored resilience for communities with a collaborative approach. Mayor Tim Keller of Albuquerque, New Mexico, described how warmer temperatures have resulted in an overpopulation of bark beetles that feed on Albuquerque’s pi?on pine trees, subsequently causing an increase in mudslides when those trees die. The American Institute for Architects works with mayors like Keller and other city leaders across the country and abroad to build more resilient communities through measures like using sustainable building materials and making housing more affordable.
Infrastructure that works for a changing climate: How can infrastructure be designed and built to work as a system rather than a collection of individual assets? That was the question posed by the Millennium Challenge Corporation (MCC) at the start of a U.S. Center event about infrastructure resilience. Systems thinking and breaking down artificial barriers between mitigation and adaptation ensures that assets are able to contribute emission reductions as well as improved resilience. U.S. Agency for International Development Senior Advisor for Climate Kristen Sarri illustrated this concept with the example of MCC’s support for the first utility-scale solar and storage power project in Malawi, which produces zero-carbon electricity in a drought-prone region otherwise reliant on hydropower.
Investing in ocean CDR: NOAA’s Climate Ready Nation Initiative Director Amanda McCarty spoke at an Ocean Pavilion event about ocean carbon dioxide removal (CDR). The session explored the dual need for independent research and private sector investment. McCarty highlighted the newly released National Marine Carbon Dioxide Removal Research Strategy, and fellow panelist Paul Morris of the Woods Hole Oceanographic Institution explained their initiative, Exploring Ocean Iron Solutions, to describe the status of research and monitoring in this space.
Around the World
Just be cool: As global temperatures rise, so do cooling demands. The cooling industry is meeting this demand for air conditioners, chillers, and refrigeration at the same time that countries are implementing the Kigali Amendment to the Montreal Protocol, which requires a gradual move away from hydrofluorocarbons (HFCs) with high global warming potential (GWP) in refrigerants. The transition to low-GWP refrigerants faces challenges like misalignment with energy efficiency performance standards and the endurance of legacy equipment that use HFCs. During a side event on this topic, Trane Technologies Global Director of Policy and Advocacy Helen Walter-Terrinoni discussed how a “go and grow” mentality has led the company to embrace low-GWP refrigerants and bring in new high-efficiency equipment to market.
AI as a driver of climate solutions: International Energy Agency analyst Thomas Spencer outlined his organization’s preliminary thinking about the role of artificial intelligence (AI) in clean energy, ahead of a special report on the subject to be released next year. While demand for data centers only accounts for 1% of the global total, the impact can be significantly greater. AI has the potential to improve the efficiency of existing technologies and help grid operators optimize the efficiency of the energy system while smoothing volatility in supply and demand from intermittent resources like solar and wind and electric vehicles.
Framework for adaptation investment: At their Accelerating Investment in Adaptation event, the Organisation for Economic Co-Operation and Development launched their Climate Adaptation Investment Framework. This report outlines a “whole of market approach” to helping governments build policies that support adaptation investment. It highlights non-prescriptive policy recommendations across six key categories: strategic planning and policy coherence, regulatory alignment, insurance and risk transfer, public finance and investment, sustainable finance, and support and incentives for private investment.
IPCC update: The Intergovernmental Panel on Climate Change’s (IPCC’s) 7th Assessment Cycle is well underway. In addition to the standard assessment report, which represents a global scientific consensus on the extent and impacts of climate change, the IPCC is undertaking three special reports on (1) climate change and cities, (2) carbon dioxide removal technology and carbon capture utilization and storage, and (3) short-lived climate forcers. All of these special reports are set to be completed by the end of 2027.
Early-warning systems progress: The World Meteorological Organization (WMO) hosted a side event on the Early Warnings for All (EW4All) initiative, which has a target timeline to implement multi-hazard early-warning systems around the world by 2027. WMO Secretary-General Celeste Saulo underscored the importance of closing finance gaps in scaling up EW4All, stating that every dollar for early warnings will save 10 dollars in disaster response. Country representatives from Azerbaijan, Tonga, and Somalia shared implementation progress, early successes, and remaining challenges. The 2024 Global Status of Multi-Hazard Early Warning Systems report, released yesterday, found that countries with inadequate warning systems have a disaster mortality ratio nearly six times higher than countries with substantial coverage.
Catalyzing green shipping: RMI and partners in Denmark have launched a new platform to increase the use of alternative fuels in the shipping sector. The tool, Katalist, uses “a Book & Claim chain of custody model to allow supply to meet demand without the need for a physical connection,” and is designed to increase data transparency and integrity.
Partnering to scale up renewable energy: In a conversation about meeting the goal of tripling renewable energy with ambitious NDCs, speakers highlighted the Africa-led and initiated Accelerated Partnerships for Renewable Energy in Africa. The U.S., Denmark, and UAE, among other countries, are part of this effort, which takes on projects like connecting a Denmark transmission operator with its counterparts in partnering countries in Africa to share information and technology on preparing a grid for scaled-up renewable energy.
Global Climate Action Portal: The UNFCCC is inviting delegates to submit information about “climate initiatives, pledges and declarations, publications and reports, and other climate action announcements" to be compiled in their Global Climate Action Portal. You can find the portal to track all the announcements submitted here.