Introduction:

COP29 or the Conference of the Parties of the UN Climate Change Conference, was recently held in Baku, Azerbaijan between the 11th-22nd November, 2024. COP29 aimed at moving ahead with the goals of the Paris Agreement, focusing on mechanisms such as carbon trading & scaling-up financial support for developing countries.

Pre-COP Meeting:

During a Pre-COP meeting (on 10th & 11th October), members emphasized the need to cap global warming at 1.5°C, as data from the UN Environment Programme had suggested that existing climate pledges may lead to an overall 2.9°C increase.

Key Takeaways:

1. Based on the UNEP report and the Pre-COP meet, COP29 stressed on implementing measures to limit global warming to 1.5°C.

2. The COP29 Presidency began the address by emphasizing on the importance of enhanced Nationally Determined Contributions (NDCs) in line with 1.5°C targets and appealing the submission of national NDCs by 2025.

3. The Presidency also called for all member nations to prepare & submit their National Adaptation Plans (NAPs) by 2025.

4. At the conference, member nations sanctioned a key framework under Article 6.4 of the Paris Agreement, by unanimously establishing a UN-backed body to regulate international carbon credit trading.

5. The newly adopted rules under Article 6 of the Paris Agreement now creates two different types of markets, where member nations will trade ‘emission reductions’ and discount them from their national climate plans:

a. Article 6.2 will regulate bilateral carbon trading between countries.

b. Article 6.4 will create a global crediting mechanism for member nations to sell emission reductions.

6. The ‘government-to-government’ carbon trading decision was in a state of inaction for years.

7. This decision is expected to unlock billions of dollars in climate finance, predominantly intended for developing countries.

8. Climate Finance was another important topic at COP29, which focused on scaling-up resources for developing countries to address climate impacts and transition to low-carbon economies.

9. The conference concluded with an agreement to mitigate the effects of climate change and financially help developing nations transition to more sustainable energy sources.

10. Comprehensive rules & a registry were agreed to expedite & record international trading of carbon credits.

India at COP29:

At COP 29, India renewed its position that public climate finance from developed countries should cover the costs imposed on developing nations. This approach points towards the historical responsibilities of developed nations, which have contributed disproportionately to global emissions, and calls for an equitable redistribution of financial resources to support developing economies.

A Contentious Outcome?

The progress made at COP29 in implementing carbon markets under Article 6 of the Paris Agreement also exposed some flaws in the system. The adoption of rules governing carbon trading was commended, but some concerns about the potential misuse of these mechanisms were also flagged. Carbon trading, in essence, allows member nations to achieve their emissions reduction targets by buying credits from other nations that surpass their own targets. While this system will lead to fund inflow into developing countries and cultivate global cooperation, its implementation is expected to be challenging. One of the most significant criticisms of this form of carbon trading is the risk of ‘greenwashing’. Developed countries may exploit this mechanism to offset their emissions without actually making meaningful reductions domestically.

Conclusion:

Despite these challenges, COP29 achieved major milestones. The ratification of Article 6 marked a historical step up in implementing carbon markets. All takeaways of COP29 point towards the pressing need for a more equitable approach to global climate governance. India’s approach puts the spotlight on addressing historical imbalances and nurturing mutual trust, while the dispute over carbon trading gave out the complexities of matching economic development with environmental sustainability.

For complete EV charging solutions, explore the Kazam website.