COP29: World Climate Action Summit – Day 1

Opening Remarks

UN Secretary-General António Guterres opened the day by highlighting the urgent need for climate action, describing a world already struggling with climate disasters.

Guterres called for world leaders to deliver on their pledges of $1 trillion annually in climate finance for developing nations. He urged developed countries to reduce emissions by at least 9% annually to limit global temperature rise to 1.5°C.

UN Climate Change Executive Secretary Simon Stiell emphasized the economic consequences of the climate emergency. He described the inflationary pressures of climate disasters, and he explained that swift climate action can encourage economic stability while providing “global inflation insurance.”

Article 6 – International Carbon Market Standards

COP29 negotiators reached a consensus on Article 6.4 of the UN Framework Convention on Climate Change, effectively agreeing on standards for a proposed international carbon market governed under UN regulations.

This topic was highlighted as a key point of negotiation for COP29 leaders at the start of the conference.

The market aims to direct funds towards developing countries to provide essential investment for climate adaptation.  The expectation is that a functioning carbon market will allow wealthier nations to offset emissions through clean energy investments.

The global carbon market is projected to create up to $250 billion in efficiencies for future UN climate plans. This breakthrough is ten years in the making, and it represents a positive highlight for the conference which has been touted as the “finance COP.”

COP29 Agenda and Loss and Damage Fund

Negotiators agreed on the conference agenda, including the Loss and Damage Fund, a report from the Adaptation Committee, climate finance matters and statements from world leaders.

Commitments related to the Loss and Damage Fund aim to turn pledges into concrete funding agreements during the conference. The fund is expected to provide financial support to countries most affected by climate change, addressing the losses and damages they incur.

Discussions on Justice and Equity

The UN High Commissioner for Refugees (UNHCR) published a report on the struggles of displaced populations in regions severely impacted by climate change.

Filippo Grandi, the UN High Commissioner for Refugees, highlighted the injustice for those populations most affected by climate change, who are the least responsible for carbon emissions. The report resonated widely, with leaders and societies calling for developed nations to honor their financial commitments to address these impacts.

UK’s New Climate Commitments

UK Prime Minister Keir Starmer announced a target to reduce emissions by 81% by 2035 compared to 1990 levels. He emphasized that a shift to clean energy would lower costs and boost energy independence. This represents a more ambitious Nationally Determined Contribution (NDC) than the UK’s previous target.

Recognition of Transparent Climate Reporting

Simon Stiell recognized the first nine countries that had submitted their Biennial Transparency Reports (BTRs): Andorra, Guyana, Panama, Japan, Spain, Türkiye, Kazakhstan, the Netherlands and Singapore.

These reports are crucial for building robust evidence to strengthen climate policies, identify financing needs and make necessary improvements. Stiell praised these countries for setting a good example and encouraged others to follow suit.

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Further reading on COP29

COP29 | Business Topics | Eversheds Sutherland