​Key Highlights

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• Global Carbon Markets Make Significant Progress.
  Significant progress was made on global carbon markets, with parties reaching a consensus on carbon credit standards under Article 6.4 of the Paris Agreement. This is expected to reduce the cost of implementing national plans by around USD 250 billion annually. While discussions on Article 6.2 continue, this development marks a key step in advancing global market cooperation and cross-border collaboration.

 

• Fund for Loss and Damage Reaches Key Milestone.
  The Fund for Loss and Damage has surpassed USD 720 million in pledges, advancing towards its goal of supporting vulnerable countries. With agreements in place with the World Bank and the Philippines, funds are set to be disbursed by 2025. COP29 President Mukhtar Babayev highlighted that this progress will transform pledges into tangible support for addressing the climate crisis.

 

• Historic Commitments to Climate Finance.
  Multilateral Development Banks (MDBs) pledged to mobilize USD 120 billion annually by 2030 for climate action in low- and middle-income countries. Of this, USD 42 billion will go towards adaptation, with an additional USD 65 billion expected from the private sector. These commitments are essential in bridging the climate finance gap and supporting the most vulnerable nations.

 

• COP29 Presidency Champions New Initiatives.
  The COP29 Presidency introduced 14 new initiatives aligning climate action with the SDGs, focusing on green energy, energy storage, and methane reduction. A new Climate Finance Action Fund was also launched to support the transition to sustainable energy solutions, highlighting the need for systemic change across industries.

 

• Baku Initiative for Climate-Resilient Agriculture.
  In collaboration with the Food and Agriculture Organization (FAO), Azerbaijan introduced the Baku Climate Initiative to support farmers with resources for sustainable agriculture. This initiative is critical in the face of rising climate impacts, as it aims to address food security while promoting climate resilience in farming communities.

 

• Global Push for a Just Energy Transition.
  The High-Level Ministerial Dialogue on scaling up renewable energy and improving energy efficiency saw leaders reaffirm their commitment to achieving global energy transitions. The “Global Energy Storage and Grids” initiative was also discussed, aiming to support global efforts in creating a more efficient, interconnected energy system.

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GC’s Perspective

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As COP29 progresses, GC Advisory recognizes the monumental strides being made toward a low-carbon, sustainable future. The progress on carbon markets, especially under Article 6.4, will have significant implications for international cooperation and the global economy. At GC Advisory, we view this as a pivotal moment for businesses to take advantage of new carbon credit mechanisms and prepare for future market developments.

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The Fund for Loss and Damage is another key milestone, with the mobilization of financial resources critical for supporting vulnerable nations. As we work closely with clients across sectors, it’s clear that these developments will shape the future of climate finance. GC Advisory is particularly interested in how the new Climate Finance Action Fund will evolve and how businesses can align with these funding opportunities.

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The launch of initiatives focused on green energy, energy storage, and methane reduction is a crucial step in addressing both climate change and energy security. At GC Advisory, we emphasize the importance of these initiatives in guiding companies toward sustainable practices, particularly in the energy sector.

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Looking Ahead​

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As COP29 progresses, Day 2’s pledges mark the start of a transformative year for global climate action. The road ahead presents opportunities for businesses in carbon markets, climate finance, and sustainable energy transitions. GC Advisory will closely track these developments to ensure clients can capitalize on emerging opportunities. With COP29’s ambitious goals, the time for action is now, and the global community is united in working toward a sustainable, low-carbon future.​