COP29 Secures Landmark $1.3 Trillion Climate Finance by 2035

The COP29 Presidency of Azerbaijan has unveiled the Baku Finance Goal (BFG), a groundbreaking commitment to direct USD 1.3 trillion annually in climate finance to developing countries by 2035.

The BFG calls on developed nations to lead efforts in ensuring the accessible and transparent provision of USD 300 billion annually for developing countries, with a particular focus on the least developed countries and small island states, by 2035. This figure represents a USD 50 billion increase from earlier drafts, achieved after 48 hours of intense negotiations led by the COP29 Azerbaijani Presidency.

This significant achievement, dubbed the “Baku Breakthrough,” prioritizes COP29’s main agenda, marking a substantial increase from the previous USD 100 billion goal to transform global investment in climate solutions.

“Baku COP witnessed the establishment of a new global goal under the New Collective Quantified Goal (NCQG), which aims to provide USD 300 billion to developing countries by 2035. This agreement will assist developing nations in tackling the impacts of climate change,” said President Ilham Aliyev in his message upon the finalization of COP29.

The BFG is regarded as a cornerstone of a multi-layered package of agreements that advance progress across all major climate pillars, addressing the most complex and contentious issues in global climate negotiations. Collectively, these agreements represent a critical stride toward achieving the 1.5°C target.

COP29 President Mukhtar Babayev introduced the BFG as the best possible deal to prompt donor countries into broader action.

“We have forever changed the global financial architecture and taken a significant step towards delivering the means to achieve a pathway to 1.5°C. The years ahead will not be easy. Science shows that the challenges will only grow. Our ability to work together will be tested. The Baku Breakthrough will help us weather the coming storms,” Babayev stated.

The two-week COP29, held in Baku, Azerbaijan, from November 11 to 22, also resolved a decade-long stalemate on Article 6, finalizing agreements on high-integrity carbon markets. These markets are expected to generate USD 1 trillion in financial flows annually by 2050 and could reduce the cost of national climate plans by USD 250 billion per year. Together, the BFG and Article 6 reforms are pivotal in reshaping global climate finance by redirecting vital resources to the developing world.

The COP29 Presidency also activated the Fund for Loss and Damage, with plans to begin distributing funds by 2025. This decision addresses the urgent needs of small island states, least developed countries, and African nations facing the severest climate change impacts.

Other key milestones at COP29:

• 150 Parties endorsed pledges and declarations on energy storage, grids, zones, corridors, and hydrogen.
• Over 75 governments and more than 1,100 members of the digital tech community endorsed the use of low-emission digital tools to enhance climate resilience.
• Multilateral Development Banks (MDBs) announced USD 170 billion in collective annual funds to support climate action by 2030, with USD 120 billion designated for low- and middle-income countries.
• The US, China, EU, UAE, UK, Brazil, Canada, and Nigeria announced policies to reduce methane emissions from organic waste.
• Climate finance pledges reached USD 7.3 billion, led by the Asian Development Bank (USD 3.5 billion), Azerbaijan’s banking sector (USD 1.2 billion), Sweden (USD 760 million), and Canada (USD 1.5 billion from the government and USD 290 million from philanthropies) for initiatives addressing melting glaciers, green taxonomies, and climate action.
• More than 50 shipping industry leaders agreed to accelerate the use of zero- and low-emission fuels by 2030, aiming for at least 5 million tons of green hydrogen.
• Mexico pledged to achieve net-zero emissions by 2050, making all G20 countries committed to a net-zero goal.
• The last five COP Presidencies (COP26 to COP30) and the WHO Director-General made health a central part of the climate agenda. They launched the Baku COP Presidencies Continuity Coalition for Climate and Health to ensure health remains a core focus in future COP conferences.
• Twenty-five countries and the European Union committed to phasing out unabated coal from their energy systems and urged others to follow suit.

From November 11 to 22, more than 76,000 participants, including presidents, prime ministers, ministers, and other high-level public and private figures from 80 countries, attended the COP29 global climate summit in Baku, Azerbaijan.