New climate finance goal adopted at COP29

The 29th Conference of the Parties to the UN Framework Convention on Climate Change, COP29, took place in Baku, Azerbaijan, on 11-24 November and was attended by almost 67 000 participants. The meeting was due to conclude on 22 November but was extended after negotiations took longer than expected. 

The issue that attracted most attention was the NCQG. The parties were able to agree on a new goal consisting of two parts: ‘core’ financing of at least USD 300 billion annually by 2035, and an ‘additional layer’ of up to USD 1.3 trillion primarily encompassing private financing. For Sweden and the EU, it was crucial that the NCQG encompass more donors, with a particular focus on the rich developing countries that currently receive donations within the same systems beginning to take responsibility for contributing to financing. Following COP29, countries such as China and the Gulf states will now be encouraged to make voluntary contributions towards meeting the NCQG. 

“We think it’s positive that now, for the first time, we have a clause on voluntary financial contributions from developing countries so that countries such as China and the Gulf states can start contributing to global climate financing,” says Minister for Climate and the Environment Romina Pourmokhtari.

The negotiations also resulted in decisions on guidance for the various climate funds (the Green Climate Fund, the Global Environment Facility and the Fund for responding to Loss and Damage).

COP29 also produced a decision on full operationalisation of Article 6 of the Paris Agreement on emissions trading. The decision on Article 6.2, which concerns ad hoc trading, is a success for Sweden and the EU, which have advocated for maximally detailed and transparent reporting on projects undertaken. Regarding Article 6.4 – a key mechanism for emissions trading – the decision means that the UNFCCC can begin implementation. 

“Operationalising emissions trading is crucial to reducing emissions globally. We are delighted at the progress made during COP29, which lays the foundations for emissions reduction measures and projects around the world. Sweden is one of the first countries in the world that is undertaking Article 6 cooperation with other countries and this is an important part of the Government’s ambitious and effective climate policy,” says Ms Pourmokhtari.

Via the Swedish Energy Agency, Sweden signed agreements with Zambia and Nepal under Article 6.2. 

COP29 adopted a new work programme on gender, which will apply for a ten-year period. It also decided that a gender action plan will be produced during 2025.

COP29 was characterised by tensions between a number of countries, and not just in matters of financing. The question of how to move forward on emissions reductions also led to long and difficult negotiations, linked among other things to the follow-up of the Global Stocktake (GST) that was completed at COP28. The GST is an evaluation of all countries’ climate measures and will be undertaken every five years. COP28 established two formats for follow-up, but the negotiations at COP29 on future processes for these foundered, and were ultimately postponed until next year. The EU’s desire for greater focus on factual matters in the follow-up met resistance from countries including China and Saudi Arabia. The same applied to the negotiations on national climate plans, or Nationally Determined Contributions. The EU wanted all countries’ NDCs to contain absolute emissions reduction goals. However, the negotiations only led to a decision that the parties would resume discussions in 2026.

“We in the EU must become better at mobilising our allies, which was more difficult this year with the focus on funds from our part of the world, unlike last year, when the focus was on phasing out fossil fuels. The EU has conceded to extensive compromises in order to safeguard global cooperation and not postpone difficult decisions until future meetings,” says Ms Pourmokhtari.

Sweden announced a number of new contributions to climate measures at the meeting: 
- SEK 8 billion to the Green Climate Fund; 
- SEK 200 million to the new Fund for responding to Loss and Damage; 
- SEK 130 million to the Adaptation Fund; 
- SEK 130 million to the Least Developed Countries Fund; and 
- a guarantee to the Asian Development Bank that, together with others, has the potential to mobilise USD 11 billion (corresponding to ten per cent of the current climate financing goal of USD 100 billion annually).

Sweden was involved in three of the Azerbaijani Presidency’s climate initiatives: 
- COP29 Global energy storage and grids pledge;
- COP29 Hydrogen Declaration; and
- the Baku Transparency Platform.

Sweden also joined the Group of Negative Emitters (GONE) and backed the launch of the Call to Action for No New Coal, an initiative of the Powering Past Coal Alliance. Sweden was already a member of a number of other initiatives that held events at COP29, including the Beyond Oil & Gas Alliance (BOGA) and the Leadership Group for Industry Transition (LeadIT). 

Alongside the negotiations were a wide range of activities highlighting the opportunities associated with the transition. Business Sweden was responsible for Sweden’s pavilion, and a delegation of around 20 Swedish companies demonstrated their solutions under the banner of ‘Sweden – the climate matchmaker’.

Sweden’s delegation was led by Ms Pourmokhtari (20-24 November) and Climate Ambassador and chief negotiator Mattias Frumerie. State Secretaries Daniel Westlén and Håkan Jevrell also took part in the first week of the meeting.

The next round of international climate change negotiations will take place in Bonn on 16–26 June 2025, followed by Belem, Brazil on 10–21 November 2025 (COP30), where the focus will be on new ambitions for the Nationally Determined Contributions.