THE 60th session of the Subsidiary Body for Scientific and Technological Advice, and the Subsidiary Body for Implementation (SB60) of the United Nations Framework Convention on Climate Change in Bonn, Germany, which concluded in June 2024, revealed several critical issues and setbacks, highlighting the challenges ahead in global climate negotiations. The discussions on key areas such as climate finance, loss and damage, and carbon markets demonstrated a lack of consensus and urgency needed to address the climate crisis effectively.
Significant contention remained regarding the New Collective Quantified Goal (NCQG) on climate finance. Parties from developing countries felt their concerns were not adequately addressed. The main points of contention involved the timeframe, quantum and principles of the NCQG, with developing nations advocating for substantial financial commitments from developed countries, which have yet to propose concrete figures.
On loss and damage financing, the discussions failed to meet the urgency required, with calls for innovative financial measures such as wealth taxes and penalties on the fossil fuel industry to generate the necessary funds. The inability to reach an agreement on these measures underscores the gap between the needs of vulnerable communities and the current financial commitments.
Significant disagreements centered on the operationalization of carbon market mechanisms under Article 6 of the Paris Agreement. Disputes centered on the eligibility of emission avoidance projects, and social and environmental safeguards, among other issues. Critics argue that relying on carbon markets as a solution undermines deep emission cuts and meaningful climate action.
While SB60 was ongoing, a group of media professionals from India, Indonesia, the Philippines (including this author) and Singapore sat down with Hikmet Hajiyev, the Foreign Policy Advisor to the President of Azerbaijan, at the Presidential Administration Building in Baku, Azerbaijan. Our discussions focused on Azerbaijan's role as the Incoming COP29 Presidency this November 2024.
Striking a balance
As a resource-rich nation, Azerbaijan faces challenges and opportunities as it strives to balance economic development with environmental sustainability. It plans to significantly increase its gas production as part of a broader strategy to enhance energy security and support economic growth, particularly in the face of shifting geopolitical dynamics and Europe's need to diversify its energy sources away from Russian gas.
Despite this push for increased gas production, Azerbaijan is also taking steps to address its environmental impact. The State Oil Company of Azerbaijan Republic is working to eliminate gas flaring and reduce methane emissions. The country is exploring carbon capture, utilization and storage technologies to further mitigate its carbon footprint. These efforts are aligned with Azerbaijan's goal to reduce greenhouse gas emissions by 40 percent by 2050 and increase the share of renewable energy (RE) in its energy mix to 30 percent by 2030.
Azerbaijan's strategy includes substantial investments in RE infrastructure, such as wind and solar power projects, and international cooperation to create a green energy corridor linking the Caspian Sea with Europe. While in Baku, Azerbaijan, we witnessed the launch of three RE projects that will provide 1 gigawatt supply. These initiatives highlight the country's commitment to fostering a more sustainable and resilient energy system while navigating the complexities of global energy markets and climate policy.
Azerbaijan aims to leverage its role as the COP29 host to facilitate global solidarity and enhance ambition in climate action. It expressed a strong commitment to mobilizing climate finance. Azerbaijan's approach emphasizes the necessity of financial resources to achieve ambitious climate goals and highlights the country's dedication to promoting climate action both domestically and internationally.
A significant aspect of this strategy is ensuring that climate finance mechanisms are accessible and effective. This includes advocating for the redistribution of resources to support climate action in vulnerable countries and promoting collaboration between developed and developing nations. By prioritizing climate finance, Azerbaijan aims to support a fair and sustainable transition toward a low-carbon future, in line with global efforts to limit warming to 1.5 degrees Celsius.
As the world prepares for COP29 in Baku, Azerbaijan, this November 2024, there is a need for increased ambition and concrete actions. The challenges in achieving consensus on critical issues reflect the complexity of global climate governance and the necessity for continued efforts to bridge gaps and foster cooperation among nations. With Azerbaijan's goal to lead by example, its leadership must drive forward critical discussions on climate finance, ensuring adequate resources are mobilized to support ambitious climate actions worldwide.
The author is the founder and chief strategic adviser of the Young Environmental Forum and a director of Climate Tracker Asia Inc. He completed a climate change and development course at the University of East Anglia (United Kingdom) and an executive program on sustainability leadership at Yale University (USA). You can email him at ludwig.federigan@gmail.com.
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