COP29 makes progress towards mobilizing increased climate finance

Extension of High-Level Champions mandate and outcomes across adaptation, finance and mitigation signal that non-State actor leadership and collaboration will be more important than ever in lead up to COP30 in Belém, Brazil By Climate Champions Team | November 24, 2024

The 29th UN Climate Change Conference (COP29) brought together businesses, private finance and subnational actors from around the world, marking significant progress in the collective effort to combat climate change. COP29 also saw steps forward for climate finance, the operationalization of carbon markets, as well as progress on the Mitigation Work Program and the global goal on adaptation.

COP29 highlights the role of non-Party stakeholders — including the UN Climate Change High-Level Champions and the Marrakech Partnership — in accelerating global climate action and sends a clear invitation to non-Party stakeholders to continue to step up and support Parties with accelerating implementation.

A landmark decision for non-Party stakeholders at COP29 was the renewal of the mandate for the High-Level Champions until 2030, clearly signalling that Parties recognize the importance of non-Party stakeholders in supporting them to achieve the Paris Agreement goals across finance, adaptation and mitigation.

“COP29 saw important steps toward tackling the biggest challenges of our time. The voice of businesses large and small at COP29 was consistent and clear. Climate action and investment is good for business, the economy, and our society. Countries must now quickly activate to deliver with a particular focus on developing countries and SMEs. Non-State actors’ resolve, leadership and readiness to seize the benefits of inclusive climate action provide a beacon of hope and their insights and innovations can inform and support governments’ next steps,” said Nigar Arpadarai, UN Climate Change High-Level Champion for COP29.

“The unanimous extension of the High-Level Champions’ mandate is an important signal  that climate action will only succeed if it is genuinely and authentically inclusive. As countries finalise their climate and adaptation plans in early 2025, non-State actors stand ready to support ambitious, investable, nature- and people-positive plans to reduce emissions, increase resilience and drive sustainable development. Let us come together to build from Baku to Belém to amplify impact and drive greater ambition in every corner of the globe,” said H.E. Razan Al Mubarak, UN Climate Change High-Level Champion for COP28.

Focus on finance

With finance a key focus at COP29, Parties and non-Party stakeholders emphasised the importance of collaboration, and of public and private money, in achieving the goals of the Paris Agreement, especially for developing countries. 

Non-State actor attendees from businesses of all sizes, as well as Mayors, Governors, civil society leaders and Indigenous Peoples, called for clear ambitious policy to unlock investable national climate and adaptation plans throughout the two-week Global Climate Action Agenda programme. 

Solutions highlighted by private finance attendees at COP29 to help achieve these goals included new forms of insurance, an overlooked enabler of climate action, which was highlighted for the first time within the Marrakech Partnership. Nature finance including the TNFD, the investment opportunity in nature and credit enhancement for sustainability-linked sovereign financing also emerged as themes, in addition to increasing emphasis and positive returns on adaptation finance investments.

Investable climate projects were also showcased at COP29 – from solar initiatives in Central Asia to land restoration schemes in Latin America – showing the potential for financing climate solutions in developing countries.

A groundswell of real economy action

Announcements made during COP29 and summarised in the Summary of Global Climate Action at COP 29 report demonstrate that many real economy actors are already leading by example, responding to economic opportunities presented by the just transition, as well as the risk of inaction.

From the launch of the Resilience4Ports Call to Action,  to the Utilities for Net Zero’s commitment to invest $117bn annually in renewables and grids, to other 650 financial institutions convened by Race to Zero partners, the Global Climate Action Agenda demonstrated strong signals of progress already underway.

The Action Agenda in review

COP29’s eight-day Global Climate Action Agenda programme from 13-21 November, featured events and interactive working sessions showcasing progress and emphasising the importance of an ambitious, fair, climate finance deal to catalyse and derisk Paris-aligned investment, and strong ambitious investable climate and adaptation plans from all countries.

Thousands of participants heard from diverse speakers, including Ministers, representatives from large corporates and financiers to small and medium enterprises, financiers, and representatives from cities, states and regions, through the Global Climate Action High-Level Event, Marrakech Partnership innovation labs, panel discussions and even a debate.

Highlights of real economy leadership on display throughout the COP29 Global Climate Action programme are available in the HLC daily recaps on the Action Agenda at COP29, including progress and action on nature, inclusion, SMEs, Finance, nature, adaptation, insurance, and just transition away from fossil fuels. Race to Zero and Race to Resilience members continue to increase in number and make tangible, beneficial progress toward their goals.

The 2030 Climate Solutions — recently updated through the lens of regional perspectives — provides a clear framework for effective cooperation and progress, including on finance, as well as measures to be scaled up and replicated as well as current gaps that need to be bridged to halve global emissions, address adaptation gaps and increase the resilience of four billion people from vulnerable groups and communities to climate risks by 2030.

“Countries have an opportunity to reflect on the evolving needs of their residents and turn ambition into action through collaboration and collective ownership,” state Ms. Arpadarai and Ms. Al Mubarak in their joint foreword. “Because only immediate, ambitious, science-based, inclusive and truly global climate action will make our net zero, resilient, nature positive and equitable future possible.”

Countries’ NDCs, due by early 2025 remain a critical opportunity to lay out ambitious, investable, nature and people-positive plans to reduce emissions, increase resilience and drive sustainable development. Non-State actors stand ready to support ambition and action on the road to COP30 in Belém.