COP29 Concludes

(Cover photo by IISD/ENB | Mike Muzurakis)

Written by Natalie Mangondo, Senior Expert at GRID-Arendal

After two gruelling weeks in Baku, Azerbaijan, COP29 has concluded, leaving many to question whether the outcomes reflect the urgency of the climate crisis. Branded as “The Finance COP,” the summit sought to address inequities in climate finance and deliver transformative global action. Yet, the results fell short, particularly for vulnerable communities and ecosystems.

With global temperatures already 1.2°C above pre-industrial levels, the stakes were immense. Vulnerable nations face escalating climate impacts as mentioned in the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment (2022). For these nations and communities, the 1.5°C threshold of the Paris Agreement is a matter of survival. Despite extended negotiations running 30 hours overtime, the final agreements underwhelmed. The primary finance commitment, $300 billion annually for developing nations by 2035, is a fraction of the $1 trillion per year recommended by the Independent High-Level Expert Group on Climate Finance. While a roadmap to $1.3 trillion by 2035 was outlined, the lack of immediate funding leaves the most vulnerable dangerously exposed.

The IPCC confirms this: protecting, managing, and restoring ecosystems could contribute up to 30% of the emissions reductions needed to limit warming to 1.5°C by 2030. Beyond mitigation, ecosystems provide essential services such as water filtration, soil stabilisation, and pollination, which underpin food and water security. Yet, funding for nature-based solutions remains critically low according to UNEP’s State of Finance for Nature Report, just $200 billion annually, far below the $542 billion needed by 2030, while harmful activities like deforestation and fossil fuel extraction attract over $7 trillion in annual investments.

The misalignment in global finance priorities undermines climate resilience and perpetuates ecological degradation. GRID-Arendal’s COP29 Nature Progress Survey revealed unanimous recognition of nature’s importance but highlighted significant gaps in translating this understanding into action:

COP29 underscored the inadequacy of current climate finance to address the interconnected crises of climate change and biodiversity loss. The global community must elevate nature as a cornerstone of climate solutions, embedding it into financial mechanisms, policy frameworks, and implementation strategies.

1. Elevating Nature in Climate Commitments

Nature must become central to NDCs and financial frameworks, with ambitious targets for ecosystem restoration, carbon sequestration, and biodiversity protection. The NDC3.0 process and COP30 in Belém, Brazil, offers a unique opportunity to showcase how nature-based solutions can address mitigation, adaptation, and resilience cohesively.

2. Reforming Financial Mechanisms

The global financial system must increase grant-based finance for restoration and adaptation, particularly for least developed countries and small island states. Multilateral banks and climate funds should establish dedicated portfolios for nature-based solutions, simplifying access for vulnerable nations.

3. Aligning Public and Private Sector Efforts

Public finance must lead in de-risking investments, creating favourable conditions to attract private capital. Blended finance models should leverage public resources to magnify private sector contributions, accelerating transformative action.

4. Enhancing Transparency and Accountability

Strong reporting frameworks aligned with the Paris Agreement’s Transparency Framework are essential to ensure equitable fund distribution and build trust in climate finance outcomes.

5. Bridging Climate and Biodiversity Goals

Policies must align the Rio Conventions on climate, biodiversity, and desertification, leveraging synergies to deliver multiple benefits through integrated solutions.

6. Centering Equity and Inclusion

Indigenous peoples, local communities, and marginalised groups are critical stewards of ecosystems. Their rights, knowledge, and leadership must be central to decision-making processes, ensuring equitable and effective implementation of nature-based solutions.

COP29 highlighted the promise and peril of global climate finance. While nature emerged as a recurring theme, it was sidelined in formal agreements, reflecting a critical flaw in global priorities. Yet, momentum is building. The COP29 Nature Statement, signed by over 100 organisations, called for $1 trillion annually in climate finance, with a significant focus on nature-based solutions. Brazil, as custodian of the Amazon rainforest, holds a unique opportunity at COP30 to place nature at the heart of global climate action. The Nature Assessment Scorecard offers a roadmap to bridge gaps and prioritise ecosystem protection within financial and policy frameworks. Mobilising resources and aligning global finance with nature’s potential are essential steps.

As António Guterres, UN Secretary-General, aptly said, “Commitments must quickly become cash.” GRID-Arendal remains committed to bridging science, policy, and finance, championing investments that deliver measurable benefits for ecosystems, communities, and the global climate. COP30 must transform nature from a sidelined topic into the foundation of a viable solution to the climate crisis. The fight for nature continues.