The 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) was held in Baku, the capital of Azerbaijan. The U.N. Framework Convention on Climate Change is an agreement signed at the Rio Earth Summit in June 1992 to prevent dangerous human interference in the climate system. The acronym COP stands for "Conference of Parties" and is the highest legislative body overseeing the implementation of the Framework Convention on Climate Change.

The COP29 meeting was attended by representatives of 196 countries, including the heads of state and governments of 80 countries. This high number occurred even though some European states, especially France and the Armenian diaspora, actively called for a boycott against COP29. France encouraged several heads of state to refrain from attending the event. In addition to France's particular efforts at the beginning of COP29, the European Parliament adopted a resolution that unfairly criticized the presidency and Azerbaijan's global efforts to combat climate change in general. That is, France's ambassador to Baku, Anna Boillon, was summoned to the Ministry of Foreign Affairs of Azerbaijan and condemned such efforts of France. On the other hand, Armenia was also a part of this smear process from the beginning and tried to cast a political shadow over the COP29 meeting by bringing up the issue of signing a peace agreement before COP29. Therefore, while Azerbaijan was preparing to host a major event to make a positive contribution to global climate change, it had to fight against a serious disinformation and information attack.

The COP29 presidency has put forward 14 initiatives covering topics such as the link between climate action and sustainable development goals, green energy zones and corridors, energy storage, harmony for climate resilience, agriculture, clean hydrogen, methane reduction from organic waste, green digital action and more. Additionally, one of the initiatives includes the establishment of the Climate Finance Action Fund.

The key goal of COP29 is to agree on how much money developed countries should provide developing ones to help them fight climate change, a critical plank in efforts to limit the damage caused by rising global temperatures. Different figures floating around in the press about the amount that could be collected. While developing countries were demanding more, developed countries were willing to give less. During this process, a G-20 summit meeting was held and the call made by Azerbaijan expected the support of the G-20 countries in these negotiations. Developing countries insisted on a target worth $1 trillion each year. According to the World Economic Forum, $1 trillion is a realistic and achievable number.

While the negotiations were ongoing, the election of Donald Trump, who did not take climate change seriously, had a negative impact on the spirit of the talks. Donald Trump declared that he would remove the U.S. from the Paris Climate Accord for the second time if he wins the presidency again.

The negotiations were aimed to be completed by Nov. 21, but due to a deadlock caused by differences between developed and developing countries, the negotiation process was extended until Nov. 23. As of Nov. 23, rich countries pledged to contribute at least $300 billion annually to the global fight against climate change. The target, or new collective quantified goal (NCQG), will replace the existing $100 billion goal that is due to expire in 2025. U.N. General Secretary Anthony Guterres underlined that commitments must quickly become cash. All countries must come together to ensure the top-end of this new goal is met.

While some delegations applauded the deal, others, especially from the developing world, expressed their deep disappointment at what they argued was an "insulting" financing target and the fact that the agreed text failed to build on an agreement passed last year calling for nations to "transition away from fossil fuels." Developing countries who had sought over $1 trillion in assistance called the agreement "insulting" and argued it did not give them the vital resources they required to truly address the complexities of the climate crisis.

At the end of COP29, countries also agreed on the rules for a U.N.-backed global carbon market. This market will facilitate the trading of carbon credits, incentivizing countries to reduce emissions and invest in climate-friendly projects.

Alongside finance, the future of fossil fuels is at the heart of COP29, which has stirred disagreement from day one. It is not easy to avoid fossil fuels. On the one hand, the cost of renewing old infrastructure in the transition to green energy; on the other hand, the increasing world population and industrialization increase the demand for fossil resources. Renewable energy sources are insufficient to meet the demand in the face of a growing population. Mohamed Hamel, secretary general of the Gas Exporting Countries Forum, went a step further in his praise for fossil fuels. "As the world’s population grows, the economy expands, and human living conditions improve, the world will need more natural gas, not less."

Azerbaijan as an energy hub

COP29 was also an excellent opportunity to attract international capital to invest in Azerbaijan's renewable energy resources. Azerbaijan is dedicated to international cooperation, sustainable development goals, and unlocking its green energy potential. This achievement will accelerate our energy transition efforts while enhancing our contribution to global climate objectives.

Azerbaijan is one of the countries with a high potential for abundant energy sources. Thus, the potential of renewable energy sources, which are economically viable and technically feasible, is estimated at 27,000 MW, including 3,000 MW of wind energy, 23,000 MW of solar energy, 380 MW of bioenergy potential and 520 MW of mountain rivers. the technical potential of offshore wind energy in the Azerbaijani part of the Caspian Sea is estimated at a total of 157 GW.

Azerbaijan has started a "green energy" partnership with 7 international companies. As of 2020, cooperation with the energy projects of Masdar, ACWA Power, BP, Fortescue Future Industries, China Gezhouba Group Overseas Investment, Total Energies, Nobel Energy, A-Z Czech Engineering and Baltech companies has started.

During COP29 Azerbaijan concluded its first-ever renewable energy auction with technical assistance from the European Bank for Reconstruction and Development (EBRD). The outcome of the competitive auction was announced at the United Nations Climate Change Conference in Baku (COP29). The company Universal International Holdings Limited, which submitted the lowest bid for the price per kilowatt-hour of electricity, won the auction. The plant, which is planned to be commissioned in 2027, is expected to produce around 260 million kilowatt-hours of electricity annually. This will not only save about 57 million cubic meters of natural gas each year but will also reduce carbon emissions by 124,000 tons.

One of the most important side effects of climate change is the decrease in water reserves. In this context, within the framework of COP29, the Declaration of Climate Action on Water was accepted for the first time in Baku. COP29 Presidency launched Water for Climate Action endorsed by 50 countries and non-state actors. This program commits to taking integrated approaches to combat the causes and impacts of climate change on water basins, paving the way for greater regional and international cooperation. To support these efforts, signatories will work together to strengthen the generation of scientific evidence on the causes and impacts of climate change on water resources and water basins, including through data sharing and the creation of new basin-wide climate scenarios.

As a result, this agreement reached in Baku is a historic success in combating climate change. Although the demand for $1 trillion in developing countries has not been met, the annual target of $300 billion is more than $100 billion. For the agreement to be realized, developed countries must turn their promises into cash. On the other hand, we see that countries are taking steps towards transitioning to green energy. However, industrial developments and increasing influence in the world show that a gradual transition to green energy will be healthy.