COP29 Baku: trends, obstacles and the way forward

The 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, was another key milestone in the global fight against climate change. Although the summit represented incremental advances on climate finance, carbon markets, and industrial decarbonization policies like the EU’s Carbon Border Adjustment Mechanism (CBAM), it failed to transform renewable energy or solve the age-old problem of loss and damage.

One of the most striking aspects of COP29 was the commitment to allocate $300 billion per year by 2035 to help developing countries fight climate change. This is a substantial jump from the previous $100 billion commitment and reflects a growing recognition of the financial burden of climate resilience. But even that amount falls far short of the $1.3 trillion needed each year to meet the goals of the Paris Agreement. At COP29, the fight for climate finance highlighted a gulf between rich and poor. While rich countries have pledged to increase spending, most developing countries, already hit by climate-related disasters, have said funding is insufficient and precarious. This step forward is symbolic rather than revolutionary unless we can put in place more precise deadlines and mechanisms.

Carbon credit mechanisms

COP29 saw the finalization of international rules for trading carbon credits in Article 6.4 of the Paris Agreement. This desperately needed framework would standardize carbon markets, eliminate greenwashing, and provide states and businesses with a legally controlled method to offset their emissions. Through a UN-backed global market, the treaty will provide much-needed funding for renewable energy projects in the Global South.

However, questions remain about the use of carbon credits. Critics say overuse of carbon offsets risks delaying real decarbonization – particularly in high-emissions industries. Nor do the poor fear that strict rules could reduce their ability to produce and sell credits and keep them at a disadvantage in international carbon markets.

Renewable energy transition

Despite the urgent need to decarbonize the world’s energy infrastructure, COP29 failed to make the case for a faster transition to renewable energy. Opposition from oil-rich countries has made it impossible to agree on meaningful measures to reduce the use of fossil fuels, illustrating the geopolitical nature of the energy transition. This neglect is particularly alarming given that renewable energy is one of the cheapest and most flexible ways to reduce global warming. Without stronger global commitments, nations may fail to reach net-zero emissions standards and fall further behind in the global war against global warming.

Loss and damage

Loss and damage, which includes financing for countries already affected by climate, remains a controversial topic. Although COP28 in Dubai created a fund for losses and damages, COP29 was unable to follow through. The fund’s purpose and funding flows were unclear, with at-risk countries lamenting the lack of real progress. For countries whose coasts are hit by devastating and frequent climate-related floods, hurricanes and droughts, this inaction is catastrophic. Unless it provides direct operational mechanisms, the Loss and Damage Fund could easily turn into yet another bureaucratic guarantee provided on the ground.

A double-edged sword

The EU’s CBAM, which imposes tariffs on carbon-intensive imports, was one of the main debates at COP29. Although CBAM seeks to boost global decarbonization, it presents obstacles for low- and middle-income countries. Countries like Turkey, which trade carbon-based materials like steel and cement with the EU, are in serious economic danger if they do not comply with the CBAM. Türkiye, among others, demanded flexibility in the CBAM model to adapt to the decarbonization process already underway. Additionally, COP29 discussions focused on capacity-building efforts that enable industries in emerging economies to adapt without disrupting the economy to CBAM requirements. Although CBAM can help clean up industrial processes more quickly, it must be applied equitably so as not to harm low-growth economies.

Turkey’s role

Turkey was an important participant at COP29 due to its geopolitical positioning as an intermediary between the advanced and developing world. The country outlined its net zero emissions by 2053 plan and focused on increasing investment in renewable energy, including solar, wind and geothermal installations. Turkey’s attempt to integrate local collaboration with Azerbaijan and its neighbors into its renewable energy program has been seen as an example of cross-border cooperation. But Turkey’s continued domestic dependence on coal and natural gas has been criticized. The state simultaneously strives to ensure energy security and progress toward global decarbonization goals. The CBAM in particular presented Turkey with both a problem and an opportunity. By integrating renewable energy into its manufacturing processes and coordinating its policies with EU requirements, Turkey would be able to reduce CBAM emissions and become the clean energy powerhouse of Europe and the Middle East . Türkiye also called for equal climate finance, as well as a Loss and Damage Fund to help middle-income countries following climate-related disasters. Aside from its own vulnerabilities and economic goals, Turkey’s presentation at COP29 highlights the need for subtle and inclusive global climate action.

A strong and fair reform

COP29 in Baku highlighted the difficulties of multilateral climate negotiations. The summit had limited success on the carbon markets and climate finance fronts, but did little to address the link between renewable energy transitions and mitigation of loss and damage in the real world. Turkey’s frenzied participation in COP29 illustrates the country’s emerging global climate diplomacy. As the world looks to COP30 in Brazil, countries like Turkey must insist on reasonable and proportionate solutions that bridge the gap between developed and developing countries. Only by working together and setting ambitious goals can the world secure a sustainable and resilient future for all.