COP29 Key DevelopmentsExploring the Pivotal Agreements and Challenges Shaping Global Climate Action at COP29

On 11 November, the United Nations (UN) opened the 2024 UN Climate Change Conference (COP29). On the opening day, Parties reached consensus on standards for the creation of carbon credits under Article 6.4 of the Paris Agreement.

Doing so will enable climate action by increasing demand for carbon credits and ensure that the international carbon market operates with integrity under the supervision of the UN.

These standards will ensure that the international carbon market is high integrity, and that emission reductions and removals are real, additional, verified and measurable.

On 12 November, in his speech at COP29, Prime inister Keir Starmer announced the UK’s ationally Determined Contribution (NDC) target to reduce greenhouse gas emissions by at least 81% by 2035, compared to 1990 levels.

The new “ambitious and pragmatic” DC target has been made to be in line with the recommendation from the Climate Change Committee and it is also expected to support the UK’s mission for growth, attract greater investment and create new green jobs.

The PM also called for other countries to match the UK’s ambition to address the urgency of climate change, as the United ations highlights that the world is “way off track” to limit global temperature rise to 1. ˚C.

Continuing his speech, the PM announced the launch of the Global Clean Power Alliance, which aims to unlock private finance needed to accelerate the UK’s clean energy transition; a 1bn windfarm turbine contract awarded by Scottish Power to Siemens Gamsa, as part of its £24bn investment to support British energy projects; and the introduction of the Clean Industry Bonus (CIB) Scheme, which aims to strengthen offshore wind supply chains.

In relation to the CIB Scheme, Keir Starmer disclosed that it will be set up with a provisional £27mn per GW of offshore wind projects, noting that the scheme is intended to incentivise offshore wind developers to invest in UK clean industry.

DESNZ has opened a consultation on the CIB scheme, which proposes additions to the Contract for Difference scheme to enable the inclusion of the scheme in the contract.

It noted that offshore wind developers who invest in sustainable supply chains will be allocated extra revenue support. It states that the consultation will close on 10 December 2024.

Also announced at COP29, by Energy Secretary Ed Milliband, was a new package of support to aid the global energy transition, particularly in climate vulnerable countries.

Funding pledges withing the package include: £45mn for the World Bank’s Energy Sector Management Assistance Programme, £15mn for Innovate UK, £14mn for United Nations Industrial Development Organisation, and £5mn to help developing countries tackle methane emissions.

The COP29 Presidency launched the ‘Baku Call on Climate Action for Peace, Relied, and Recovery’ alongside Egypt, Italy, Germany, Uganda, the UEA, and the UK.

It states that the initiative aims to address climate change, conflict and humanitarian needs to recognise the adverse effect of climate change in creating conflict and instability.

On 24 November, it was announced that the nearly 200 countries in attendance at COP29 reached agreement on a new finance goal.

It states that the agreement is set to triple the finance available to developing countries to $300bn annually by 2035, as well as secure $1.3trn per year by 2035 to scale up finance to developing countries.

Simon Stiell, Executive Secretary of UN Climate Change, stated that the new agreement will “keep the clean energy boom growing”.

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