The Azerbaijan COP29 Presidency has achieved a major milestone in global climate action by securing the groundbreaking Baku Finance Goal (BFG). This commitment includes an unprecedented $1.3 trillion annual pledge for developing countries by 2035, marking a significant change in how climate finance is directed and strengthening international cooperation.
The centerpiece of COP29, the Baku Finance Goal, triples the core annual target to $300 billion, up from the previous $100 billion. Enhanced provisions complement this commitment to ensure accessibility and transparency, with a special focus on the least developed countries and small island states.
“People doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts,” COP29 President Mukhtar Babayev declared during the plenary session. He emphasized that the agreement would provide a critical pathway to limiting global warming to 1.5°C, calling the BFG “the best possible deal we could reach.”
The Baku Finance Goal’s ambitious framework is expected to catalyze a new wave of investments in renewable energy, green infrastructure, and resilience projects in the Global South.
Breaking New Ground in Carbon Markets
COP29 also achieved a landmark breakthrough on Article 6, resolving a decade-long impasse on carbon market mechanisms. The newly adopted standards for high-integrity carbon markets are projected to generate $1 trillion annually by 2050 and reduce the cost of implementing national climate plans by $250 billion annually.
Together with the Baku Finance Goal, these mechanisms promise to redirect unprecedented financial flows toward developing countries.
Loss and Damage Fund: Long-Awaited Progress
The COP29 Presidency operationalized the Loss and Damage Fund, ensuring it will be ready to distribute resources by 2025. With total pledges exceeding $730 million and hosting agreements secured with the Philippines and the World Bank, the fund represents a significant step in addressing climate injustices faced by nations most impacted by climate change.
Innovative Initiatives and Declarations
Beyond finance, COP29 launched a series of transformative initiatives under its Action Agenda:
- Baku Initiative for Climate Finance, Investment, and Trade (BICFIT): A platform uniting stakeholders across sectors to prioritize climate finance and green transitions for SMEs.
- Green Digital Action Declaration: Endorsed by over 1,100 members of the digital community, this initiative leverages digital tools for emissions reduction and climate resilience.
- Baku Harmoniya Climate Initiative for Farmers: Simplifies access to climate finance for farmers, promoting sustainable agriculture.
- Reducing Methane from Organic Waste: With commitments from 50 nations, this declaration targets a key driver of global methane emissions.
Other achievements included declarations on water, sustainable tourism, and urban resilience, reinforcing COP29’s holistic approach to combating climate change.
COP29 also saw robust commitments from multilateral development banks, philanthropies, and private investors. With over $7.3 billion pledged for climate projects during Finance, Investment, and Trade Day alone, the summit underscored the indispensable role of diverse partnerships in driving climate action.
As the summit concluded, Babayev reflected on the road ahead: “The years ahead will not be easy. The challenges will grow, but the Baku Breakthrough will help us weather the coming storms.”
COP29’s achievements lay a foundation for transformative change. By reimagining climate finance, advancing carbon markets, and addressing loss and damage, the Azerbaijan Presidency has set a new benchmark for global climate leadership.
