Baku Climate Change Conference to focus on finance target – energy transition needs to be boosted

The world states will convene at the Climate Change Conference COP29 in Baku, Azerbaijan on 11–22 November. The aim is to decide on a new common climate finance target. A faster energy transition will be needed as the countries are preparing to set new emission reduction targets during next year.

The Conference of the Parties to the UN Climate Agreement will begin with the World Leaders Climate Action Summit of the Heads of State and Government. Finland’s representative at the summit is President of the Republic Alexander Stubb, who will deliver Finland’s address at the meeting on 12 November. President Stubb will head the Finnish delegation during the first week of the Conference. During the second week, the Finnish delegation will be led by Minister of Climate and the Environment of Finland Kai Mykkänen.

The preparations for the climate negotiations take place in very unstable global political situation. At the same time, the extreme weather events caused by climate change keep getting stronger and have caused significant damages in different parts of the world. The key issue in terms of reaching the 1.5 degree target is to make progress in the energy transition.

“What is the most important is to reduce emissions fast. Large economies have the key role in this as they will decide the direction of the global emission trends. The agreement on phasing out fossil fuels reached in Dubai last year must be put to practice, and now actions from the world countries are needed. Next year, the EU will also set its emission reduction target for 2040. Finland has already given its support to the Commission’s proposal and will promote clean energy solutions,” Mykkänen says.

In line with the first Global Stocktake of the Paris Agreement last year, the countries must set their emission reduction targets before the Climate Change Conference COP30 next year.

EU’s target is to expand sources of financing and mobilise all financial flows

A particular focus in the negotiations at the Climate Change Conference COP29 this year will be on climate finance. The developing and especially the poorest and most vulnerable countries need financing for their climate actions - for climate change mitigation and adaptation and for climate damages. At the Conference, agreement should be reached on the post-2025 climate finance target, the New Collective Quantified Goal (NCQG).

The different groups of countries have strongly diverging views on this. The aim of Finland and the EU is to get all sources of financing involved in climate finance, including public and private sources and national financing of the countries. A broader range of financiers will be needed. Contributions are also needed from countries other than the traditional industrialised countries, especially from countries with a high income level where industrialisation has proceeded fast and from rich oil producing countries.

“We need appropriately targeted and adequate climate financing. Finland and the EU consider it important that the finance target comprises all financial flows, not just public financing. The number of countries contributing to the financing must be increased as well. It is important to include countries such as China and the Arab countries, which are also significant producers of greenhouse gas emissions but which in the negotiations belong to the group of developing countries,” Finland’s Chief Negotiator Marjo Nummelin says.

The negotiations should reach a common understanding of the level of climate financing. In 2022 the annual target for the traditional industrialised countries to mobilise USD 100 billion was exceeded for the first time. The finance target to be agreed in Baku should replace the target that obliged only the traditional industrialised countries to finance climate actions in developing countries. 

Market mechanisms and adaptation target on agenda 

COP29 should also bring the negotiations on the rules for the international market mechanisms into conclusion, with a particular focus on their implementation. The international market mechanisms enable the countries that have signed the Paris Agreement to also take climate actions outside their own national borders. The Climate Change Conference will also continue the work on indicators for the adaptation target. This work should be completed at COP30 next year.

The preparations for the meeting are led by a ‘Presidencies Troika’ composed of last year’s Presidency the Arab Emirates, Azerbaijan and Brazil, which will hold the Presidency next year.

Inquiries:  

Lyydia Ylönen 
Special Adviser to the Minister
tel. +358 50 476 1341
(in Baku 20–23 November)

Marjo Nummelin 
Finland’s Chief Negotiator
tel. +358 295 250 227
(in Baku 11–23 November)

Outi Honkatukia (climate finance)
Director of Climate Unit
tel. +358 295 250 272
(in Baku 8–23 November)

Kaarle Kupiainen (Global Stocktake of the Paris Agreement) 
Ministerial Adviser
tel. +358 295 250 232
(in Baku 11–23 November)

Laura Kotila (requests for interviews with the Minister and experts)
Communications Specialist
tel. +358 295 250 405
(in Baku 20–23 November)