Rasim Huseynov from Baku
As the world turns its attention to COP29, environmental activists and the public alike are bracing for what promises to be a brief yet densely packed conference on the shores of the Caspian Sea in Baku—an emerging economic and geopolitical hub. This year’s event arrives amid a mix of optimism and tension, shaped by both promising developments and daunting challenges. The absence of leaders from major polluting nations, the ongoing war, and rising resistance to climate action from populist movements cast a shadow over the conference’s tone.
Yet these challenges unfold against a backdrop of escalating climate emergencies and financial and organisational unpreparedness to meet these crises head-on. Amid such complexities, can Baku—a city on the rise—offer new hope to billions impacted by anthropogenic climate change?
The encouraging news is that shifts in global power and a more multipolar world also present opportunities for more balanced and stable approaches to climate change mitigation and adaptation policies. This multipolar reshuffling opens up space for innovative alliances and trade policies, potentially leading to a reinvigorated climate agenda that balances economic growth with environmental responsibility.
Why should we remain hopeful despite the seemingly insurmountable obstacles facing climate action today? COP29 offers a unique moment to confront these challenges head-on, presenting clear opportunities to dismantle some of the critical barriers blocking progress. Here are the major tasks on the COP29 agenda and the roles they play in accelerating efforts to meet targets essential for the planet's survival:
Advancing Carbon Trade as “Trade for Environment”
Carbon markets can transform environmental responsibility into a global trade commodity, incentivising countries and corporations alike to reduce emissions and meet national commitments. Article 6 of the Paris Climate Agreement allows countries to form alliances and create carbon markets—market instruments designed to drive demand for carbon reduction. COP29 can play a key role in harmonising and developing this vital tool to operationalise global climate action.
By reframing carbon trade as “trade for environment,” COP29 can promote a global marketplace that directly ties economic gains to climate responsibility, creating a sustainable and impactful pathway for emissions reductions.
Area to Watch: For carbon markets to remain effective, they must be designed sustainably to allow for future regulatory adjustments. Market-driven instruments still require oversight and fine-tuning to ensure they fulfil policy aims. Further, fraud prevention, market integrity, and robust oversight are essential to maintain public trust and environmental impact.
Strengthening Climate Finance for Developing Nations
Climate finance is essential for enabling developing nations to build resilient infrastructures, adopt clean technologies, and transition to greener economies. COP29’s discussions could reduce financing barriers by mobilising support from wealthier nations and fostering public-private partnerships to address funding gaps.
Developing nations are often the most vulnerable to climate impacts but the least equipped to address them. Ensuring they have access to the necessary financial resources is critical to achieving global climate targets and building a more equitable climate response.
Area to Watch: Developing countries should be supported in ways that encourage self-sufficiency and partnerships, rather than creating dependencies or allowing funds to be siphoned back to donors through indirect channels. Independent regulatory capacity and value creation must be the ultimate goal, allowing these nations to thrive on their terms.
Aligning Trade Policies with Climate Goals
Harmonising trade policies with environmental goals can facilitate the flow of green technologies and reduce emissions across borders. At COP29, agreements on eco-friendly trade practices and climate-related tariffs could bring greater consistency to environmental standards worldwide.
Aligning trade and climate agendas removes significant regulatory barriers, enabling countries to implement climate policies more effectively while fostering green economic growth and reducing competitive disparities.
Area to Watch: Support must be provided to those local industries and communities impacted by these shifts, offering them compensation or viable alternatives to prevent them from being left behind. Innovation and competitiveness should be encouraged, not compromised by excessive regulation.
Enabling Climate-Resilient Supply Chains through Sustainable Infrastructure
Developing sustainable, climate-resilient infrastructure is vital for secure, low-carbon trade routes. The Trans-Caspian corridor, with Baku as a central hub, presents a key opportunity for linking Europe and Asia through environmentally sound logistics. COP29’s focus on such infrastructure could encourage investments in rail electrification, renewable energy hubs, and digital tracking, making supply chains more efficient and eco-friendly.
Climate-resilient supply chains protect economies from climate-related disruptions while supporting green development goals, creating a foundation for sustainable trade that meets both economic and environmental needs.
Area to Watch: Striking the right balance between long-term sustainability and competitiveness of transport routes will be crucial for creating global value and environmental resilience. Ensuring both sustainability and economic viability in taxation and investment policies is essential.
Addressing Climate Taxation as a Driver of Change
Climate taxes, such as carbon border adjustments, aim to prevent “carbon leakage” and incentivise cleaner production methods. COP29 can encourage balanced approaches to climate taxation that support industries in reducing emissions without stifling growth, particularly in resource-rich regions.
Fair and consistent climate taxation policies can accelerate the global shift to low-carbon practices, helping ensure that countries and industries bear the environmental costs of their activities, fostering a more sustainable economy.
Area to Watch: It’s essential to avoid placing an excessive burden on developing countries that lack regulatory, technical, and financial capacity. Targeted technical support can help create new revenue streams, contributing to cash-strapped developing economies without compromising their economic development.
Keeping the Focus on the Bigger Picture
Despite a challenging political climate and unprecedented environmental threats, COP29 is a crucial opportunity to forge sustainable paths forward by addressing some of the most significant obstacles to progress. Through focused dialogue and collaborative policy-making, the conference can catalyse real change, encouraging countries to meet climate goals and secure a safer, more resilient planet for future generations.
Komentar