Context:
Recently, the 29th edition of the Conference of Parties (COP29) was held in Baku, Azerbaijan.
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Theme: “In Solidarity for a Green World”
Focus Areas:
- Strengthening commitments under the Paris Agreement.
- Equitable climate finance, mitigation strategies and adaptation measures.
Key Outcomes of the COP29:
(I) A clear distinction between Climate Finance and NCQG
Climate Finance: Climate finance technically includes every dollar that is even remotely connected to some aspect of ‘climate’ and therefore includes profit-making business investments as well.
- As per the Paris Agreement, developed countries have mobilized and transferred $115 billion in 2021-22 (though not all countries agree). But, as per the agreement, a new target higher than $100 billion had to be agreed upon in 2025.
New Collective Quantified Goal on Climate Finance (NCQG): It refers to money that will be given from developed countries to developing countries to help them meet their climate-related goals/targets and curb greenhouse gas emissions.
- It is an annual target for mobilizing climate finance to meet the needs and priorities of developing countries.
- While a broader target of $1.3 trillion annually by 2035 was adopted, only $300bn annually was designated for grants and low-interest loans from developed nations to aid the developing world in transitioning to low-carbon economies and preparing for climate change effects.
India’s Response:
- India does not accept the goal proposal in its present form. The amount that is proposed to be mobilized is abysmally poor. It is not something that will enable conducive climate action that is necessary for the survival of our country.
(II) New Rules for Carbon Trading
- It allows developed, wealthy and high-emission countries to buy carbon credits (offsets) from the developing countries.
- The initiative, known as Article 6 of the Paris Agreement, establishes frameworks for both direct country-to-country carbon trading and an UN-regulated marketplace.
- It could act as a vital investment into developing nations, where many carbon credits are generated through activities such as reforestation, protecting carbon sinks, and transitioning to clean energy.
(III) Baku Workplan
- The Summit adopts the Baku Workplan to elevate the Voices of Indigenous Peoples and Local Communities in Climate Action.
- It focuses on three key areas viz. building capacity for engagement, promoting knowledge exchange, and incorporating diverse values and knowledge systems into climate policies and actions.
(IV) Baku Transparency Platform
- It is an initiative by the COP29 Presidency to enhance participation in the Enhanced Transparency Framework (ETF) and streamline existing transparency support, especially for developing countries.
Various Initiatives Launched during COP-29:
(I) Reducing Methane from Organic Waste Declaration
- As per commitment to their NDCs targets, some signatories have pledged to establish sectoral targets for reducing methane emissions from organic waste.
- Therefore, signatory countries are also committed to implementing policies and roadmaps to achieve these methane reduction targets.
- According to the Emission Gap Report (2024), organic waste is considered the third-largest source of human-caused methane emissions, followed by agriculture and fossil fuels.
- There are around 35 countries which are signed this agreement. Notably, India is not a signatory to this commitment.
(II) Baku Harmoniya Climate Initiative for Farmers
- It is an aggregator platform launched with the United Nations Food and Agriculture (UN-FAO) with Food and Agriculture for Sustainable Transformation (FAST) partnership.
- Objective: To help/assist farmers in supporting the transformation of agrifood systems into climate-resistant models. It also seeks to catalyse investments and empower farmers, with a special focus on women and youth.
(III) Climate Finance Action Fund (CFAF)
- It will be capitalized via contributions from fossil fuel-producing countries and companies.
- The contributions will be voluntary allowing fossil fuel-producing companies and countries to contribute either based on their production volumes or a fixed annual sum.
- In addition, 20% of the revenues generated from investments will be allocated to a Rapid Response Funding Facility (2R2F). This provides highly grant-based support and concessional rates to address urgent climate-related needs.
- These funds collected will be allocated equally: 50% will support climate-related projects in developing countries; 50% will assist in implementing their respective national climate action plans in developing countries.
- Once, this fund becomes operational when it reaches a minimum corpus of $1 billion.
(IV) Global Energy Efficiency Alliance (launched by UAE)
- The alliance will focus on compiling and disseminating best practices, with a particular emphasis on assisting African nations.
- The alliance aims to encourage strategic public-private partnerships and bolster investments in energy efficiency initiatives.
- This move aims to double global energy efficiency by 2030 and contribute to significant emission reductions.
Role of India’s stand in COP-29:
- Countries in the Global South are bearing a huge financial cost on account of climate actions for mitigation on the one hand, and losses & damages caused by climate change on the other.
- India called on developed countries to remove barriers to technology transfer, increase public climate finance, and avoid unfair trade measures disguised as climate action.
- Recently, India has updated its National Determined Contribution (NDC) targets that commit to a 45% reduction in carbon intensity by 2030 and an increase to 50% of its energy from renewable sources.
- India has also advocated for equitable financial support from developed countries and emphasised that climate finance should come from concessional funding, non-debt derivatives and grants.
- As per the Paris Agreement, India has committed to achieving net-zero emissions by 2070. This target is crucial for the country to strive to balance its developmental activities with sustainability goals.
- India is one of the global leaders in renewable energy initiatives that aims to achieve 500 GW of renewable energy capacity by 2030. Moreover, India also advocates the International Solar Alliance (ISA) that promotes the adoption of solar energy worldwide.
- India advocated for the LiFE initiative that encourages sustainable consumption patterns and environmentally friendly lifestyles at a global level.