Each year, world leaders and negotiators gather at the United Nation’s climate summits to address the escalating climate crisis. But this year’s COP29 in Baku feels different.
Dubbed the “Finance COP”, its focus is on funding initiatives to curb the flailing increase in global warming temperatures.
This COP also marks the last major talks before countries submit updated emission reduction targets in 2025. With the world far off track to limit warming to 1.5 degrees Celsius, the pressure is on.
This year’s discussions centre on a new financial target to be set before early 2025. For developing countries, especially in the Asia-Pacific region, this isn’t just about numbers — it’s about survival.
What is COP29 and why is it important?
COP29, the 29th Conference of the Parties, is the world’s most significant climate conference.
The event is part of the United Nations Framework Convention on Climate Change, a treaty signed in 1992 by nearly 200 countries.
These annual gatherings are where nations negotiate strategies to combat climate change, including reducing greenhouse gas emissions and addressing the impacts of global warming.
Held from November 11 to 22 in Baku, Azerbaijan, this year COP29 aims to solidify financial and policy commitments to limit global temperature rise to 1.5C through the New Collective Quantified Goal.
What is the New Collective Quantified Goal?
The New Collective Quantified Goal (NCQG) is a cornerstone of the Paris Agreement.
This landmark treaty aims to limit global warming’s incline to below 2C, with efforts to cap it at 1.5C. This is a threshold to avoid the most catastrophic climate outcomes.
To achieve this, countries commit to Nationally Determined Contributions, which outline their plans for reducing emissions and adapting to climate impacts.
But these commitments, especially from developing nations, require substantial financial support. That’s where the NCQG comes in.
It’s set to replace the $100 billion per year target established in 2009 and create a new financial target, expected to total over a trillion dollars annually.
The Paris Agreement’s Article 9 explicitly states that developed countries must provide financial resources to assist developing countries in their climate efforts by funnelling money into mitigation, adaptation and loss and damage control.
The NCQG has its share of complications, however. One of the most hotly contested topics is the role that emerging economies like China and Saudi Arabia should play.
China remains a developing country according to UN classifications, but it has grown impressively in recent years — and its emissions have risen along with it.
Developing countries have no obligation to contribute to the $US100 billion goal, but many have been doing so voluntarily — including China.
Why the new goal matters to Asia and the Pacific
The Pacific Small Island Developing States, including Fiji, Tuvalu and Vanuatu, have been vocal ahead of COP29. For them, the NCQG represents a lifeline.
The region has seen a 700 per cent increase in climate disasters over the past decade, with economic losses totalling $AUD7.3 billion in just two years, according to Oxfam Australia.
Eunice Wotene, Oxfam in the Pacific’s Executive Director, highlighted the urgent need for more significant and accessible funding.
“The scale of climate damage is beyond what we have imagined and getting worse by the day,” Ms Wotene said.
“Unless Australia and other developed nations act decisively, the struggle for a climate-secure Pacific will only get harder.
“We need 1.5 to stay alive; our survival cannot be negotiated.”
The average annual GDP loss in the Pacific has jumped from 3.2 per cent (2004-2013) to 14.3 per cent in the last decade.
For countries like Vanuatu, the situation is even bleaker. In both 2015 and 2020, climate disasters wiped out a staggering 80 per cent of its GDP.
John Salong, Vanuatu’s Climate Minister said the country has arrived at a “new normal”.
“When it comes to our vulnerability to increased frequency and severity of natural disasters… The clock is ticking and the science is clear – the frequency and intensity of these natural disasters will only increase.”
The Secretariat of the Pacific Regional Environment Programme will be coordinating talks, urging that the new goal must deliver accessible and simplified finance tailored to the vulnerabilities of the Pacific.