5 critical areas to consider at this year’s climate summit

The world’s largest annual climate conference has begun in Baku, Azerbaijan. The UN’s COP 29 (or the 29th^Th The Conference of the Parties is an annual initiative to promote global climate policy and action. Baku is an interesting location for such a conference as it was one of the world’s first oil boom cities in the late 19th century^Th and early 20s^Th centuries.

But regardless of the situation, the urgency of climate change has reached unprecedented levels. This year alone in Spain we have experienced record flooding, intensifying heatwaves and a continued advance towards the 1.5°C warming threshold. Climate impacts are no longer distant concerns – they are current crises. This urgency is exacerbated by the potential fallout from the recent US election, which could slow global progress toward decarbonization. COP 29 is therefore considered one of the most momentous climate conferences of all time.

Here’s your guide to five critical areas to keep an eye on as countries come together to advance—and hopefully accelerate—global climate efforts.

1. Nationally Determined Contributions (NDCs): Laying the foundation for COP 30

At COP 29, a key focus will be on creating the conditions for countries to submit updated Nationally Determined Contributions (NDCs) ahead of COP 30. The NDCs are set and updated every five years and are crucial as they represent each country’s voluntary commitments to reduce emissions. With current trends suggesting global temperatures could exceed 1.5C by the early 2030s, nations will be under pressure to come up with far more ambitious plans.

Many countries are falling short of their original goals. For example, according to the World Resources Institute, current commitments will result in the world warming to around 2.4°C – a dangerous scenario for ecosystems and communities alike. COP 29 offers nations an opportunity to act by increasing their commitments and clarifying their decarbonization plans.

2. Update the new Collective Quantified Goal (NCQG) on climate finance

Another key agenda item at COP 29 is redefining the New Collective Quantified Goal (NCQG) for climate finance, a goal that is long overdue for expansion. For over a decade, developed countries have pledged $100 billion annually to help developing countries mitigate and adapt to the impacts of climate change. However, these funds often fell short of expectations. The actual need is far greater. COP 29 provides a critical opportunity to rethink and expand the NCQG to address real needs, including support for adaptation and resilience in vulnerable countries.

Additionally, the financial landscape is changing as developing countries continue to increase their economies and emissions. COP 29 will also focus on building mechanisms that ensure transparent and fair distribution of climate funds. A reassessment of climate finance is essential to both meet growing needs and maintain trust between developed and developing countries.

3. Carbon markets: Refinement of Article 6 of the Paris Climate Agreement

Carbon markets represent one of the more controversial but potentially transformative mechanisms for climate action. Under Article 6 of the Paris Agreement, countries can trade carbon credits to offset emissions, thereby driving emissions reductions in a cost-effective manner. However, disagreements over the parameters and transparency of carbon trading have slowed progress, and the system lacks standardized rules, which can lead to market manipulation and ineffective reductions.

COP 29 is expected to build on the carbon market foundations laid in previous COPs and seek a regulatory framework that ensures real, measurable emissions reductions. The International Institute for Sustainable Development (IISD) explains that clearer guidelines are essential for a functioning and fair carbon market. Progress on Article 6 could catalyze billions in investment in low-carbon projects around the world. This COP will be a crucial moment to decide how carbon markets can become a reliable tool for financing climate action or whether they will remain mired in regulatory uncertainty.

4. Adjustment and Loss and Damage: Operationalizing the Loss and Damage Fund

One of the COP’s most significant recent achievements was the establishment of the Loss and Damage Fund in 2022, a historic step to address the needs of countries most affected by the impacts of climate change. However, the creation of the fund was only the first step. Now COP 29 delegates must focus on putting it into practice to provide timely support to countries on the front lines of climate disasters.

In communicating the priorities for COP 29, the United Nations emphasized the importance of ensuring that vulnerable countries have access to resources without bureaucratic delays. Climate-related economic losses are estimated to be in the hundreds of billions per year, and without improved climate finance, vulnerable countries face extreme financial stress. This year’s discussions will focus on establishing the Fund’s governance structure, mobilizing resources and scaling up the Fund to bridge the gap between current commitments and actual needs. Progress on adaptation and loss and damage would provide life-changing support for millions of people around the world and provide an essential safety net in the face of the increasing impacts of climate change.

5. Biodiversity and climate: integrating nature-based solutions

The interface between climate protection and biodiversity protection is becoming increasingly important as a crucial area for sustainable development. Nature-based solutions such as reforestation, wetland restoration and coastal protection offer powerful opportunities to mitigate climate impacts while preserving ecosystems. However, these solutions require integration into broader climate policies and require funding to scale effectively. COP 29 is expected to place greater emphasis on nature-positive initiatives that not only support carbon sequestration but also increase resilience to climate impacts such as floods and droughts.

As the World Economic Forum noted, protecting nature is critical to preserving the world’s carbon sinks, including forests, which currently absorb about 7.6 billion tons of CO₂ each year. Recognizing and scaling nature-based solutions would help close the emissions gap and provide numerous co-benefits for ecosystems and biodiversity.

Driving climate progress

COP 29 is a critical opportunity for countries to take decisive action as climate impacts accelerate. It is one of the last remaining chances to limit warming below potentially catastrophic levels. From expanding national commitments to refining the structure of carbon markets, there is still much to be done. For developed countries, meeting and expanding their climate finance commitments is a matter of trust and equity. For vulnerable countries, establishing a functioning loss and damage fund is a matter of survival. The decisions made in Baku over the next two weeks could well determine our collective climate future. As the window of opportunity to act shrinks, the world is watching closely – and expecting action.