By Christina Deligianni, Senior Advisor, Truenique/ EU Climate Pact Ambassador
As COP29 is being held in Baku, Azerbaijan, the world watches closely for a pivotal moment in climate policy. Nicknamed the “Finance COP”, this conference will be the first in 15 years to bring together representatives from every country to establish a new global climate finance target. The stakes are high, as this new goal will replace the outdated commitment made in 2009, when developed nations agreed to provide $100 billion annually by 2020 to help developing countries reduce emissions and adapt to climate impacts.
The 2009 target is no longer sufficient. Not only did nations miss their deadline by two years, but the $100 billion sum now falls significantly short of addressing the needs of developing countries facing escalating climate risks. For many, COP29 represents a make-or-break opportunity to close this climate finance gap, and many are pushing for an ambitious new funding goal that could realistically support sustainable transitions across the globe.
This COP is also a crucial checkpoint for global climate ambitions. Countries are under pressure to signal their intent to set higher emissions reduction targets next year, strengthen adaptation measures, demonstrate progress on past pledges, and commit further support for loss and damage. The scale of these commitments could determine the global trajectory of climate action over the next decade, especially for the world’s most vulnerable nations.
A recent meeting with the COP29 Leadership team, hosted by the Posterity Institute, highlighted an often-overlooked but critical part of this financial transition: small and medium-sized enterprises (SMEs). To achieve a truly global green transition, it’s essential to climate-proof SMEs by giving them tools and financing to adapt to more sustainable practices. The private sector has an essential role to play, not only in making the green transition themselves but in bridging the finance gap needed to fulfill the UN’s Sustainable Development Goals (SDGs) and ensure a sustainable future.
With shifting dynamics on both sides of the Atlantic, it will be fascinating to see how public and private sector commitments align to address these challenges. If COP29 succeeds in fostering stronger commitments and setting an ambitious climate finance target, it could signal a transformative step forward in the fight against climate change, promising greater resilience and sustainability for generations to come.
