At the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29), a broad consensus was reached on the creation of a new climate financing criterion called the “Baku Financial Target”.
According to the “Report” referring to the COP29 website, this mechanism foresees the mobilization of 1.3 trillion dollars annually for the development of climate projects in developing countries until 2035.
A key part of the new goal is a commitment by developed countries to allocate at least $300 billion a year to climate projects for developing nations. This is three times the previous target of $100 billion.
The success of the year of diplomacy under the patronage of Azerbaijan
The breakthrough was the result of intense months of diplomatic work led by the Azerbaijani presidency at COP29. Conference president Mukhtar Babayev said:
“The Baku financing target represents the best deal we can get. In a year of geopolitical fragmentation, many doubted that Azerbaijan would be able to reach a consensus. They were wrong. Baku forever changed the architecture of global climate finance.”
New mechanisms and historical decisions
COP29 concluded ten years of negotiations on Article 6 of the Paris Agreement, which regulates carbon markets, along with the Baku financing targets.
Financial flows from carbon markets are estimated to reach $1 trillion annually by 2050, reducing the cost of implementing national climate plans by $250 billion annually.
The conference also highlighted the launch of the Loss and Damage Fund, which will begin distributing funds in 2025.
A new era of climate cooperation
COP29 was a historic event that marked key steps in the fight against climate change:
Adoption of transparency and reporting standards, including the Baku Transparency Platform;
Adoption of the Baku Initiative on Finance, Investment and Trade (BICFIT);
Announce global commitments to reduce methane emissions, sustainable tourism and water resources.
International experts highlight that the achievements of COP29 confirm Azerbaijan’s role as one of the main participants in the global climate agenda.
