The 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) that was held between 11 – 22 November in Baku, the capital of Azerbaijan, was an important moment in the effort to fight against climate change in the global level. Gathered on the eve of the mounting evidence of the escalating impacts of climate change, the conference aimed to increase tangible solutions to pressing global challenges like rising temperatures, biodiversity loss, and the socio-economic disparities that are intensified by climate crises. The conference marked a significant shift from theoretical commitments to actionable strategies while emphasizing financial equity, technological innovation, and inclusivity in climate governance.
The selection of Azerbaijan as the host country for COP29 was iconic of the complex dynamics during the transition to sustainable development. As a country that historically has a reliance on fossil fuels, like oil and natural gas, the efforts of Azerbaijan to position itself as a leader in the region in terms of green technology and renewable energy shows the broader challenges and opportunities faced by emerging economies worldwide. While located at the crossroads of East and West, Europe and Asia, Azerbaijan also offered a significant platform for increasing cooperation between developed and developing countries and among diverse stakeholders, such as governments, civil society, academia and the private sector.
In this regard, the aim of this paper is to analyse the overall outcomes and benefits of COP29, while highlighting its role to address important areas like climate finance, carbon markets, renewable energy transitions, urban resilience, and inclusivity. By emphasizing the international and local benefits of COP29, it sheds light on the transformative potential of conference in shaping future climate policies and fostering sustainable development.
Key Outcomes and Contributions
Advancing Climate Finance Goals: COP29 represented a breakthrough in climate finance, while introducing the New Collective Quantified Goal (NCQG) to increase public funding to $300 billion annually by 2035 for developing countries. This historic commitment reflects the global acknowledgment of the financial inequities that have long hindered climate adaptation and mitigation in vulnerable nations. Beyond public funding, the agreement also seeks to mobilize $1.3 trillion in combined public and private investments, ensuring a robust financial foundation for addressing climate challenges. Based on this, UN Climate Change Executive Secretary Simon Stiell emphasized that the new finance goal established at the UN Climate Conference in Baku serves as a safeguard for humanity’s future. In this regard, he highlights that “This deal will keep the clean energy boom growing and protect billions of lives. It will help all countries to share in the huge benefits of bold climate action: more jobs, stronger growth, cheaper and cleaner energy for all. But like any insurance policy – it only works – if the premiums are paid in full, and on time.”.
Moreover, during COP29, a pivotal decision was reached to fully operationalize the Loss and Damage Fund, a long-anticipated step for developing nations, including small island states, least developed countries, and African nations. This initiative aligns with the priorities outlined by the President of the Republic of Azerbaijan, Mr. Ilham Aliyev, in addressing the challenges of climate change impacts on small island states under Azerbaijan’s COP29 Presidency.
Operationalizing Carbon Markets: The conference finalized the operationalization of Article 6.4 of the Paris Agreement, establishing a framework for carbon credit trading that adheres to rigorous standards of environmental integrity. By addressing long-standing barriers to carbon market implementation, COP29 facilitated the development of transparent and cost-effective mechanisms for reducing emissions.This advancement not only accelerates progress toward Nationally Determined Contributions (NDCs) but also fosters international cooperation in achieving emissions reductions. The operationalization of carbon markets provides a platform for private sector engagement, aligning economic incentives with the goals of the Paris Agreement and promoting sustainable development on a global scale. Referring the outcome, COP29 President Mukhtar Babayev stated that, “This will be a game-changing tool to direct resources to the developing world. Following years of stalemate, the breakthroughs in Baku have now begun. But there is much more to deliver.”
Promoting Renewable Energy Transitions: Azerbaijan utilized COP29 as an opportunity to showcase its renewable energy initiatives, including large-scale solar and wind energy projects and the establishment of green energy zones. These projects highlight the feasibility of transitioning from fossil fuel dependency to sustainable energy systems. The COP29 Hydrogen Declaration, launched during the conference, emphasized the role of hydrogen technologies in decarbonizing energy systems and addressing emissions in hard-to-abate sectors. Azerbaijan’s leadership in renewable energy innovation serves as a model for other nations, demonstrating the transformative potential of emerging economies in the global energy transition.
Enhancing Urban Resilience and Sustainable Cities: Urban areas, as both major contributors to greenhouse gas emissions and critical arenas for climate action, were a focal point of COP29. The Baku Multisectoral Actions Pathways (MAP) Declaration introduced comprehensive strategies to enhance urban resilience through investments in green infrastructure, sustainable transportation, and urban planning. This initiative reflects a recognition of the urgent need to transform cities into inclusive, low-carbon, and climate-resilient hubs.
Fostering Inclusivity and Education: Inclusivity emerged as a central theme at COP29, with dedicated initiatives aimed at ensuring gender equity, youth participation, and climate literacy. The extension of the Lima Work Programme on Gender for another decade underscores the importance of addressing the needs and contributions of women and marginalized communities in climate governance. Azerbaijan’s integration of climate literacy into the Program for International Student Assessment (PISA) highlights the role of education in fostering sustainable behaviour and equipping future generations to address climate challenges. By emphasizing intergenerational collaboration and inclusivity, COP29 set a new standard for equitable climate action.
Economic Growth and Green Investments: The organization of COP29 marked a transformative moment for Azerbaijan, delivering substantial economic benefits that extended beyond the immediate gains of hosting the event. By energizing the tourism and service sectors, the conference acted as a catalyst for broader economic activity, drawing international visitors, media attention, and business interest. Additionally, COP29 elevated Azerbaijan’s profile as a promising hub for green investments, aligning its development trajectory with global trends in sustainable finance and economic diversification. The visibility and credibility gained through the event further underscored Azerbaijan’s role as a progressive actor in global sustainability efforts, potentially attracting long-term investments and fostering partnerships to support environmentally conscious initiatives.
Leadership in Climate Governance: Azerbaijan’s active engagement in COP29 exemplified its growing leadership in climate governance and its ability to influence global dialogues on sustainable development. The country’s strategic focus on transitioning to a low-carbon economy, underpinned by advancements in renewable energy deployment and sustainable urban development, positioned it as a role model for other emerging economies. By showcasing tangible progress in these areas, Azerbaijan demonstrated the feasibility and importance of integrating sustainable practices into national development strategies.
Knowledge Exchange and Technological Innovation: The platform provided by COP29 enabled critical knowledge exchange and the adoption of cutting-edge technologies aimed at addressing climate change. Innovations in renewable energy, urban planning, and climate adaptation were shared among stakeholders, fostering collaborative approaches to shared environmental challenges. These exchanges are expected to accelerate Azerbaijan’s transition toward achieving its national climate targets and broader sustainable development goals. The introduction of these advanced practices also highlights the importance of international cooperation in fostering technological innovation and building capacity for addressing the climate crisis.
Conclusion
COP29 that was held in Baku, highlighted a transformative moment in global climate governance, offering a platform for countries to move from political rhetoric to real action. While President Aliyev referred to the “Baku breakthrough” as a triumph of multilateralism, the conference itself demonstrated the strength of international cooperation in tackling the climate crisis, focusing on areas such as climate finance, carbon markets, renewable energy transitions, urban resilience, and inclusivity.
In addition, hosting COP29 provided a unique opportunity for Azerbaijan in order to demonstrate its leadership in terms of innovation of sustainable development and renewable energy. Guided by the slogan “In solidarity for a green world” the conference elevated the nation’s global standing while fostering local economic growth and technological advancement. Azerbaijan’s experience serves as a powerful example of how emerging economies can balance ambitious climate goals with localized solutions.
On a global scale, COP29 underscored the importance of equitable and inclusive climate policies, reaffirming the need for collective responsibility in addressing shared challenges. The conference’s outcomes provide a strong foundation for future climate action, setting the stage for continued progress at COP30 in Belem, Brazil, and beyond. By demonstrating that meaningful progress is possible through cooperation, innovation, and inclusivity, COP29 will be remembered as a milestone in the global journey toward a sustainable and equitable future.