Highlights of week 2 and wrap up of cop29
Howdy again!
After a long and intense COP29, we wanted to share some key takeaways from the second week of the conference. It was a whirlwind of discussions, particularly around how much funding is needed for climate action in developing countries and how actually to raise that money.
As our Week 1 summary mentioned, the NCQG was the hot topic in Baku, aiming to establish a new financial target to support developing countries in their climate efforts after 2025. This goal represents an advancement from the previous commitment of $100 billion annually set in 2009. After intense negotiations, developed nations pledged at least $300 billion per year, but this was met with disappointment from vulnerable groups like the Alliance of Small Island States and Least Developed Countries, who argued that the funding was insufficient compared to the estimated $1 trillion needed.
From the perspective of energy projects, the NCQG is poised to play a crucial role in financing emission mitigation efforts, particularly in developing countries. We will be keenly watching to see how these funds are allocated to clean energy initiatives. By increasing grants and concessional loans, the NCQG aims to lower capital costs for projects like solar farms and wind turbines, making them more accessible. Moreover, the goal emphasises the importance of adaptation funding to build resilient energy infrastructure capable of withstanding extreme weather events, which is especially vital for our neighbours in the ASEAN region.
On a more positive note, COP29 saw the adoption of Article 6 of the Paris Agreement after nine years of negotiations. This article allows countries to work together on their NDCs and sets up a framework for trading carbon credits, which is crucial for shaping energy projects globally. This allows developed nations to invest in emission reduction projects in developing countries as part of their NDCs. For instance, a developed country could finance a renewable energy project in a developing nation and receive carbon credits in return. This creates a financial incentive for both parties while ensuring cleaner energy solutions worldwide.
COP29 yielded mixed results, leaving many, especially young people, disappointed despite some positive developments. As we look ahead to COP30 in Belém, Brazil, the need for stronger commitments and collaboration is evident. Belém is transforming itself to host the event, showcasing its unique position in the Amazon and its dedication to sustainable development, while observers will be keen to see if Brazil can deliver a more impactful presidency than Azerbaijan.
MEC is dedicated to ensuring that Monash students play a vital role in shaping the energy sector. Stay connected and learn how you can join this important journey with us!
