COP29 – Stuck on Repeat
The 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC), held in Baku, Azerbaijan, marked yet another critical milestone in the global climate discourse. With 2024 projected as the hottest year on record, the summit unfolded at a critical time for global climate action.
Once again, familiar themes dominated the agenda: climate finance, adaptation and mitigation, and the future of fossil fuels. Despite the formalization of ambitious new frameworks and a tripling of climate finance goals, lingering doubts remain. Concerns about equity, inclusivity, and representation - both in terms of the event's location and its participants - continue to challenge the credibility of this global forum.
Climate Finance: A contentious breakthrough
As expected, climate finance took centre stage at COP29, with negotiations focusing in on the New Collective Quantified Goal (NCQG). This updated framework aims to scale up financial flows, committing to at least $300 billion annually by 2035, as well as $1.3 trillion per year through combined public and private sector contributions. The previous target, set at COP15 in 2009 of $100 billion-per-year was meant to be achieved by 2020, but was only reached for the first time in 2022.
While this ambitious pledge is a welcome development, especially for developing nations grappling with climate adaptation, transition, and loss and damage, its efficacy depends heavily on private-sector participation. The discussions underscored the critical role of private finance in bridging funding gaps, highlighting opportunities for businesses to invest in climate-resilient agriculture, green infrastructure, and clean energy systems in vulnerable regions. By supporting developing countries, businesses will be able to expand their presence in emerging markets, as well as demonstrate their commitment to social and environmental responsibility.
Climate adaptation: locally led adaptation finance taking centre stage
The need for scaled-up climate adaptation efforts emerged as another key takeaway. The discussions emphasised the need to scale up locally led initiatives and focused on empowering communities, strengthening local governance systems and building resilience to immediate climate risks. Vulnerable communities, particularly in the Global South, require tailored strategies to combat climate impacts such as rising sea levels, extreme weather, and resources scarcity. As vulnerable nations continue to struggle with inadequate access to adaptation finance, simplified access and investments in climate-resilient infrastructure, such as flood-defence infrastructure and drought-resistant agriculture, need to be prioritised to safeguarding livelihoods in vulnerable regions that need it the most.
For businesses navigating the ESG landscape, COP29 reinforced the importance of integrating climate-resilient measures into supply chains and operations. This proactive approach not only mitigates risks but also fosters long-term resilience - particularly for those operating in vulnerable regions.
Leveraging ISO Standards
The newly introduced ISO IWA 48:2024 standard provided a complementary framework to COP29’s high-level goals. Designed to address the fragmented nature of ESG implementation, this ISO standard offers a structured approach for organisations to integrate ESG principles and goals into actions and outcomes across operations.
The launch of ISO IWA 48:2024 is timely as it directly supports the key priorities of COP by fostering standardised ESG practices that underpin climate finance, mitigation and adaptation. While COP29 has set the high-level global agenda, ISO have provided the operational framework for organisations to translate these goals into actions, bridging the gap between policy and practice. For business and institutions, it offers a roadmap to align with global climate objectives and provides tools for embedding ESG into organisation culture. However, globally consistent ESG language and processes remains a hurdle. As a voluntary guideline, its success and effectiveness will depend on businesses’ willingness to actively adopt and adapt to guidelines, as well as hinging on how policymakers, industry groups, and organisations to promote the principles.
Businesses do not need to wait for consensus to set an example
Following its conclusion last weekend, COP29 has faced significant criticism, specifically its effectiveness in catalysing transformative change.
While the presence of a record number of fossil fuel lobbyists at COP29 has sparked allegations of diluting COP28’s fossil fuel transition commitments, businesses must continue to take meaningful action to progress the shift towards a more sustainable economy. By supporting locally led adaptation efforts and leveraging frameworks such as ISO IWA 48:2024, companies have the opportunity to reap significant benefits such as enhancing brand image and promoting sustainable growth for business.
Since the adoption of the Paris Agreement in 2015, we have seen mandatory and voluntary-driven sustainability efforts grow from companies across the globe. Every COP thereafter has stimulated an increased business focus on the impacts, risks, and opportunities their operations have on the environment. At Avyse, we are equipped to help businesses translate these global objectives into actionable outcomes. From transition planning, to improving supply chain resilience to implementing ESG frameworks and assisting with diversity and inclusion strategy. By acting now, businesses can lead the way, make impactful contributions towards sustainable development, and ultimately build a stronger reputation and brand identity.
