The partial agreement reached by the COP29 in Baku and the EP response

The 29th United Nations Climate Conference (COP29), held in Baku, Azerbaijan, concluded with a last-minute agreement that, like in previous years, left most parties dissatisfied. The deal sparked intense disputes among delegates, particularly regarding the central achievement of the event: the establishment of a fund for compensation and energy transition in developing countries. Many observers have criticized the fund as inadequate, even on paper, and remain skeptical about how much of the pledged money will actually be disbursed.

The Compensation Fund: A Mixed Outcome

Assessing the outcomes of climate COPs is challenging due to the frequent disconnect between ambitious rhetoric and the practical actions implemented to combat the climate crisis. The compromise reached in the early hours of Sunday, November 24, can be seen as both a limited success and a shortfall for international climate cooperation.

The agreement includes the creation of an international fund to address loss and damage caused by climate change, support mitigation and adaptation efforts, and finance the costly green transition in the Global South. The final commitment was increased to $300 billion annually by 2035, up from the $100 billion originally proposed (and $250 billion in a draft). Industrialized nations will bear the financial burden. Simon Stiell, head of the UN Framework Convention on Climate Change (UNFCCC), described this new green finance target as “an insurance policy for humanity.”

While the increased funding is a positive step, critics argue it still falls short of the scale needed to address the global climate emergency, raising doubts about its effectiveness and implementation.

The COP29 agreement faced widespread criticism for its $300 billion annual climate fund, which fell far short of the $1–1.3 trillion demanded by developing nations. Delegates from India, Nigeria, and the Marshall Islands condemned the commitment as inadequate and the negotiation process as opaque and coercive. Oil- and gas-producing states watered down the final text, avoiding direct references to fossil fuels or concrete plans for their phase-out, backtracking from COP28 commitments. Activists, despite repression, highlighted these shortcomings with slogans like “Pay up, phase out”, emphasizing the need for more funding and a clear fossil fuel transition.

The response from the EP

The European Parliament has approved its proposals for the COP29 Climate Conference, scheduled for November 11–22, 2024, in Baku, Azerbaijan. The resolution, passed with 429 votes in favor, calls for a socially equitable post-2025 global climate financing target, based on the “polluter pays” principle and diversified funding sources.

MEPs urged major emerging economies with high emissions and GDP to contribute financially and called for enhanced EU green diplomacy to prevent carbon leakage and promote international fairness in climate action. The EU should also support other nations in adopting carbon pricing systems, like the Emissions Trading System and the Carbon Border Adjustment Mechanism.

Parliament stressed the need for COP29 to solidify commitments from COP28 to phase out fossil fuels, including ending all subsidies and redirecting funds to climate initiatives. The summit aims to evaluate Paris Agreement progress and secure new climate financing solutions.