On Sunday, November 24^th, this year’s COP29 climate conference came to an end. Negotiations were tough but brought some success: Member countries agreed on a 300 billion USD deal for climate finance.

To fight the climate crisis, at least 1 trillion US dollars per year are necessary. COP29, taking place in Baku, Azerbaijan in November 2024, was billed as the finance climate conference. It had the very difficult task of raising funds. While most participating countries agreed that at least a trillion dollars a year needs to flow from wealthier nations to poorer ones, they were not quick to volunteer. Eventually, a deal was reached, where US and EU governments pledged financing. However, the promised sum is not high enough, according to experts. The re-election of Donald Trump also brought concern, since the US might pull out of its commitment in 2025.

Protests and discontent

After high stakes talks, COP29 agreed that a 1.3 trillion-dollar climate finance deal is necessary. But for now, negotiators agreed to triple the flow of money to help developing countries adopt cleaner energy and cope with the effects of climate change. Under this deal, wealthy nations will provide 300 billion dollars per year in support by 2035 – up from the former target of 100 billion.

These 300 billion dollars will mostly take the shape of grants and low-interest loans. It remains unclear how the 1.3 trillion target will be met. Private investors and a range of potential new money sources, like possible taxes on fossil fuels and frequent flyers, will fill the gap. But COP members still have to find an agreement.

Consequently, emotions were running high. Developing countries have called the conference a disaster for the developing world and a betrayal by wealthy countries. A related issue is the question of which countries are most in need. Bigger emerging economies like India, for example, or countries like Russia and China, that are still classed as developing or emerging in some definitions, are not necessarily the most vulnerable ones.

Two groups of such vulnerable nations, the Alliance of Small Island States and the Least Developed Countries, walked out of a meeting on Saturday in protest. They later returned, but still voiced their discontent.

Headed for 2.7 degree Celsius

COP29 took place just days after Donald Trump won the US election. He intends to withdraw the country from the Paris Agreement when he takes office in January and is likely not going to provide any climate finance to developing countries. This added pressure moved countries to decide that failing to agree on increased climate finances in Baku was not an option. However, the deal does not mean immediate funds. It might also increase the debt of developing countries.

The host country of the COP, Azerbaijan, was strongly criticised for its organisation and moderation of the conference. The country relies to 90 percent on oil and gas, with fossil fuel lobbyists highly visible at the talks. Saudi Arabia also played an obstructive role, including an attempt to alter one key text without full consultation. The two biggest economies and greenhouse gas emitters in the world, the US and China, were not very present in Baku.

In addition to climate finance, the COP also looked at the reduction of domestic emissions. If nations follow through on their current pledges, the world is still far away from the 1.5-degree Celsius goal that was agreed in Paris in 2015– currently, we are more on track for around 2.7 degrees Celsius, according to a UN report. Last year’s COP had given reason to hope that this might change quicker than it currently looks like.

Better than no deal

The next COP, number 30, will take place in the Brazilian city Belem in 2025 and countries have much to do until then. By February 2025, they will submit updated emissions-reduction pledges. Media attention will not wane and with Donald Trump taking office, there will be many questions on how other countries are making up for the damage he could wreak.

One of the days at COP29 was dedicated to cities and the urban environment. Two key declarations were launched, the COP29 Map Declaration for Resilient and Healthy Cities, and the COP29 Declaration on Enhanced Climate Action in Tourism. The former calls for cross-sector collaboration to create inclusive, sustainable, and climate-resilient cities. It emphasises

urban sustainable transport, green construction, nature-based solutions, and climate finance as critical areas for action.

In parallel, the Global Covenant of Mayors for Climate & Energy introduced a package of new partnerships and resources to accelerate multilevel climate action. This initiative supports urban climate finance, data utilisation, and innovation to enable cities to implement climate plans. The Urbanisation Day illustrated the urgency with which climate challenges at the city level need to be tackled.

City officials, urban planners, and many related professions will continue working towards climate goals. And while the deal from COP29 was disappointing, it is still better than no deal at all.

Read more about how climate finance can be increased from billions to trillions.