Much Hope Was Pinned on Tackling the Climate Crisis

The 29th United Nations Climate Change Conference (COP29), held in Baku, Azerbaijan from 11-22 November 2024, marked an important but controversial turning point in global climate negotiations. Representatives from nearly 200 countries gathered to address pressing challenges to the climate crisis, focusing on climate finance, carbon markets and fossil fuel phase-out. However, the expected results were not forthcoming. Altınbaş University Faculty of Business Administration, Assoc. Prof. Dr. Dicle Yurdakul said, “At least 1.5 trillion USD per year is needed to meet the climate adaptation and mitigation needs specified in the Paris Agreement. However, developing countries have only pledged to mobilize 300 billion dollars by 2035 for the transition to clean energy. However, this amount is still insufficient.”

Insufficient Progress on Climate Finance

Assoc. Prof. Dr. Dicle Yurdakul stated that one of the most important outcomes of COP29 was the consensus on increasing climate finance for developing countries. She explained that developed countries pledged to mobilize $300 billion annually by 2035 to help developing countries adapt to the impacts of climate change and transition to clean energy. While he noted that this is a significant increase compared to the previous target of $100 billion per year, it is still insufficient. “At least $1.5 trillion per year is needed to meet the climate adaptation and mitigation needs outlined in the Paris Agreement. Developing countries, which are the least responsible for the climate crisis but the most affected, demanded at least 500 billion dollars annually, but this demand was largely ignored.”

Carbon Markets and the Risks that Come With Them

According to Yurdakul, another important development at COP29 was the progress made in the implementation of carbon markets under Article 6 of the Paris Agreement. He noted that delegates agreed on the necessary rules to facilitate the international trade of carbon credits. This mechanism would incentivize investment in low-carbon technologies and support cost-effective emission reductions. However, Yurdakul also mentioned the possibility of misuse of carbon markets and said, “These mechanisms also create the possibility of ‘emission reduction escape’ for high-emitting industries. This could undermine efforts to achieve net zero targets.”

The Problem of Phasing Down Fossil Fuels Still Unresolved

Despite calls from activists and countries most affected by the climate crisis for a clear roadmap for phasing out fossil fuels, no commitment was made at COP29. Assoc. Prof. Dicle Yurdakul from Altınbaş University said that the host country Azerbaijan played an important role in this outcome. She said that Azerbaijan, whose economy is heavily dependent on oil and natural gas, resisted statements explicitly targeting fossil fuel reductions. This reluctance, he said, reflected broader global tensions. Major fossil fuel exporters such as Saudi Arabia and Russia are united on the lack of stringent targets. In short, when national economic interests conflict with global climate goals, we see that despite all the struggles, economic interests prevail,” he concluded.

While some progress was made at COP29, the results are clearly insufficient in the face of the magnitude of the climate crisis. While the $300 billion climate finance target is important, it falls short of providing a quick and effective solution. The failure to set concrete targets for fossil fuel reductions this year was another disappointing aspect of the conference. The conference once again demonstrated the complexity of balancing national interests, economic realities and global climate goals.