India Says 'No Deal!' to COP29’s Climate Finance Plan—What Happened in Baku?

The COP29 summit, held in Baku, Azerbaijan, resulted in several landmark agreements and highlighted the challenges of global climate governance. Here’s a concise overview of its key decisions:

1 . Climate Finance Commitment:

Developed nations committed to providing $300 billion annually by 2035 to support developing countries in combating climate change. The funding focuses on:

• Adaptation: Building resilient infrastructure, sustainable agriculture, and defences against extreme weather.
• Energy Transition: Scaling up renewable energy projects and reducing fossil fuel dependency.

Despite the pledge, many developing nations, including India and Nigeria, deemed the amount insufficient compared to the $1.3 trillion they claim is needed. Implementation depends on contributions from public and private sectors, raising concerns about whether this commitment can be fully realized.

2 . Global Carbon Market Framework:

After a decade of negotiation, COP29 finalized rules under Article 6 of the Paris Agreement:

• Article 6.2: Enables bilateral trading of carbon credits between nations.
• Article 6.4: Creates a global system for emission reduction credits.

These mechanisms aim to mobilize investments in climate projects, but concerns about transparency and enforcement remain. Critics warn of risks like "cowboy carbon markets," emphasizing the need for robust oversight to ensure credibility.

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3 .?Focus on National Climate Plans (NDCs)

• The road to 2030 hinges on countries submitting updated Nationally Determined Contributions (NDCs) by February 2025. These plans will outline each nation’s strategy to reduce emissions and adapt to the impacts of climate change.
• Several countries, including the UK, Brazil, and the UAE, received praise at COP29 for ambitious NDC submissions. These plans focus on phasing out fossil fuels and scaling renewable energy.
• The updated NDCs will be a litmus test for the global commitment to net-zero goals. For developing nations, meeting these targets will require the full realization of the $300 billion finance promise.

4 . Declaration on Reducing Methane

Over 30 countries, including the US, Germany, UK, and UAE, endorsed the?COP29 Declaration on Reducing Methane from Organic Waste (India is not a signatory).?

• The declaration targets the?waste sector’s methane emissions,?which contribute to?20% of global methane emissions.?It focuses on five priority areas:?Nationally Determined Contributions (NDCs),?regulation, data, finance, and partnerships.?
• Countries are encouraged to?include sectoral targets for reducing methane emissions?from organic waste in their?NDCs.??
• This builds on the?Global Methane Pledge?(India is not a signatory) to reduce?global methane emissions by 30% by 2030,?addressing?methane from agriculture, waste, and?fossil fuels.?

5 . Gender and Climate Change

• A decision was made to extend the?Lima Work Programme on Gender (LWPG)?for another 10 years, reaffirming gender equality in climate action and the need for a?new gender action plan to be adopted at COP30.

Established in 2014, the LWPG aims to advance gender balance and integrate gender considerations to ensure gender-responsive climate policy and?action under the Convention and the Paris Agreement.?

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6 .?Baku Harmoniya Climate Initiative for Farmers:

The COP29 Presidency in partnership with the?Food and Agriculture Organization (FAO)?launches the?Baku Harmoniya Climate Initiative for Farmers.?It is a platform that brings together the dispersed landscape of existing climate initiatives in the field of food and agriculture, in order to make support for farmers easier to find and to facilitate access to finance.

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7 .?Progress and Challenges

COP29 achieved significant progress in climate finance, carbon market mechanisms, and transparency standards, showcasing a commitment to global collaboration. These advancements reflect efforts to combat climate change through innovative policies and cooperative agreements.

However, several challenges remain that could hinder the effectiveness of these achievements:

• Funding Gaps: The $300 billion annual commitment for climate finance by 2035 falls short of the $1.3 trillion requested by developing nations, raising concerns about equity and the adequacy of support for vulnerable economies.
• Implementation Hurdles: Mechanisms such as the newly finalized global carbon market under Article 6 require robust enforcement and monitoring to ensure their integrity and effectiveness in reducing greenhouse gas emissions.
• Geopolitical Tensions: Disparities in priorities between developed and developing nations continue to strain negotiations, with disagreements over responsibilities, funding mechanisms, and emission reduction timelines.

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8 . India’s Stance at COP29

• Opposition to the Deal: India rejected the NCQG, criticising it for its?inadequacy.?The USD 300 billion pledge was?deemed insufficient?for addressing the climate challenges faced by developing nations.?India alongside other Global South countries, has been advocating for at least?USD 1.3 trillion annually?to meet the growing demands of climate change mitigation and adaptation in developing nations, with?USD 600 billion as grants or grant-equivalent resources.??
• Article 9 of the Paris Agreement: India emphasised that?developed countries should lead in mobilising climate finance, in line with?Article 9 of the Paris Agreement,?which places responsibility on developed nations. However, the final deal shifted the?responsibility to all actors,?including developing countries, instead of holding developed nations accountable for their?historical emissions and financial commitments.
• Solidarity with Vulnerable Nations: India backed the concerns of?Least Developed Countries (LDCs)?and?Small Island Developing States (SIDS), who walked out of the negotiations, citing that their demands for a fair and adequate financial target were being ignored.??

Looking ahead, COP30 in Brazil offers a critical opportunity to bridge gaps, refine commitments, and accelerate progress toward the 1.5°C target. Success will depend on sustained collaboration, enhanced ambition, and a focus on equitable climate solutions that leave no one behind.