EU Cop 29 negotiating mandate light on finance goals

Spanish Market: Emissions
14/08/24

An EU draft negotiating mandate ahead of the UN Cop 29 climate summit reiterates calls for a global approach to carbon pricing and stronger climate plans, but remains light on climate finance commitments.

EU environment ministers are working on the EU's negotiating mandate for the Cop 29 climate talks in Baku in 11-22 November. Conclusions are expected to be adopted in October.

The current text calls on other jurisdictions to "introduce or improve" their own carbon pricing mechanisms, including carbon markets aligned with the Paris Agreement. The EU wants "action" to scale up global carbon pricing and promote harmonisation. Negotiations on outstanding elements of Article 6 of the Paris climate agreement, which includes two market-based carbon pricing mechanisms, will continue at Cop 29.

But the draft merely reconfirms the EU's commitment to existing climate finance goals, although finance is set to be the overarching theme of the Baku summit. In Baku, Cop parties will have to agree on a new climate finance goal — known as the new collective quantified goal (NCQG). This represents the next stage of the $100bn/yr of climate finance that developed countries agreed to deliver to developing countries over 2020-25.

The EU's draft recalls that the bloc and its member states are the world's largest climate finance contributors, providing "at least around" a third of the world's public climate finance. The EU also notes the "overachievement", by developed countries, of the collective $100bn/yr goal for climate finance. Although developed nations surpassed the goal by $15.9bn in 2022, it was missed in 2020 and 2021, according to the OECD. Some developing countries have called for at least $1 trillion-1.3 trillion/yr for the new goal, but developed countries have yet to come forward with an amount.

Barring future input from EU finance ministers, the current draft text vaguely "invites" other countries to scale up international climate finance. The text also emphasises that public finance alone cannot deliver the levels of funding needed to transition to a climate-neutral global economy. Mobilisation of "private, philanthropic, and innovative" climate finance is essential, the text states.

The draft also further urges nationally determined contributions (NDCs) — climate plans — to be aligned with the Paris agreement's 1.5°C global warming limit. The Cop 28 final text last year encouraged parties to have "ambitious, economy-wide emission reduction targets, covering all greenhouse gases, sectors and categories and aligned with limiting global warming to 1.5 °C" in their next NDCs. Countries are expected to hand in updated climate plans to the UN by February 2025.

The EU reiterates the importance of transitioning away from fossil fuels, tripling renewable energy capacity, and doubling annual energy efficiency gains by 2030, also agreed at Cop 28.

The draft climate conclusions further note that NDCs are "collectively" far from being on track towards limiting global warming to 1.5°C and achieving the Paris agreement's long-term goals. But the ministers' draft text makes no mention of any need to readjust the EU's targets, particularly the commitment to a 55pc reduction in greenhouse gas (GHG) emissions by 2030. The European Commission's communication earlier this year, on a 90pc net GHG emissions reduction by 2040 for the bloc, compared with 1990 levels, only "represents a basis" for discussions on an EU NDC to be submitted ahead of Cop 30.

With a nod to Azerbaijan's political situation, the text adds that climate transition needs to be just and follow a "human-rights-based approach".

By Dafydd ab Iago

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19/05/25

EU, UK to ‘work towards’ linking carbon markets

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Australian carbon lobby urges government program reform

19/05/25

Australian carbon lobby urges government program reform

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US House panel votes down Republican megabill

16/05/25

US House panel votes down Republican megabill

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Verkehrssektor verfehlt Klimaziele

15/05/25

Verkehrssektor verfehlt Klimaziele

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US clean energy groups decry House budget bill

13/05/25

US clean energy groups decry House budget bill

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