The 29th Conference of the Parties (COP29) in Baku, Azerbaijan, stands as a significant moment for global climate action, building on the momentum of COP28 in Dubai. Recent climate extremes such as the devastating heatwave in India and catastrophic flooding in Spain and Brazil underline the growing urgency of the crisis. These events are stark reminders of the intensifying climate emergency and its socioeconomic consequences. COP29 offers a crucial platform for renewing global commitment to climate action, adopting innovative solutions, and ensuring that pledges translate into measurable progress.
COP28 was a landmark event where nations committed to ambitious goals, including tripling global renewable energy capacity and doubling energy efficiency by 2030. According to the International Energy Agency (IEA), achieving these targets is necessary to limit global warming to below 1.5°C. Yet, current policies leave the world on track for a temperature rise of 2.4°C, significantly overshooting the Paris Agreement’s target. While setting bold goals is critical, the real challenge lies in their implementation. At COP29, countries must focus on translating targets into actionable plans within their Nationally Determined Contributions (NDCs). The success of these efforts depends on robust strategies and mechanisms to turn pledges into reality.
Although COP28 laid the groundwork, COP29 must bridge the divide between policy and practical implementation. This requires international collaboration, sustainable financing, and tailored strategies that consider each country’s economic landscape. Energy transitions differ widely across regions. For fossil fuel-importing nations, such as those in North Africa, shifting to renewables offers economic advantages, including reduced exposure to volatile energy prices. According to IRENA, North African countries could save up to $6 billion annually by transitioning to renewable sources. On the other hand, large Asian economies reliant on fossil fuels face the dual challenge of upgrading infrastructure while addressing social impacts, such as job losses and resistance from entrenched industries.
For developing nations like India with a large population and growing demand, it is important to balance energy security with renewable ambitions. While renewables promise long-term benefits, achieving this shift requires investments in grid resilience, energy storage, and comprehensive regulations. The IEA estimates that India will need at least $1.4 trillion by 2030 to scale up renewable capacity and related infrastructure, highlighting the importance of strategic investment and international cooperation.
For countries where fossil fuel exports constitute a significant share of GDP, such as certain Middle Eastern and African nations, transitioning to renewables poses unique challenges. In some cases, fossil fuel revenues account for over 30% of GDP. The need for economic diversification extends beyond energy policy reform and calls for substantial development finance. The IEA notes that transitioning these economies will require a mix of policy innovation, workforce retraining, and development finance that supports broader economic transformation.
One of the most significant barriers to climate action is financing, underscoring the need for new approaches. According to the UNFCCC, adaptation funding requirements for developing countries are expected to rise to between $140 billion and $300 billion annually by 2030. The $1 trillion annual climate finance target, supported by estimates from the Climate Policy Initiative (CPI) and other organisations, aims to cover the increasing costs of both climate mitigation and adaptation. For many developing nations with limited fiscal space, securing this external financing is crucial for meeting their climate commitments and supporting sustainable development. This underscores the need for global financial cooperation to ensure that adequate resources are available for meaningful climate action.
Innovative financing mechanisms, such as mezzanine finance and first-loss guarantees, could help bridge this gap. Experts have highlighted that a blended finance approach that leverages public funds to mobilise private sector investment is crucial for increasing capital flows to regions that need them most. This approach can help address funding challenges and support sustainable economic growth in developing countries.
Bringing equity to energy
transition
The shift to renewables must be equitable. Many countries face significant social and economic adjustments, particularly those reliant on fossil fuel industries for employment. For example, IRENA estimates that the global energy transition could create over 122 million jobs by 2050 but would also lead to the loss of approximately 12 million fossil fuel jobs. Initiatives like the Just Energy Transition Partnerships provide frameworks for aligning international financial support with local priorities. However, the operational effectiveness of these partnerships needs refinement to ensure inclusive outcomes.
Emerging markets often encounter structural challenges, including limited institutional capacity. International support, through technical assistance and capacity-building, is crucial. A holistic approach must also include demand-side initiatives such as the electrification of transport and industry to create sustained demand for renewable energy. The IEA projects that electrifying sectors like transportation could reduce global CO2 emissions by up to 2.1 gigatonnes annually by 2030, reinforcing the demand for renewables and promoting economic stability.
COP29 comes as global climate strategies are being reshaped by geopolitical and energy security concerns. The European Union’s rapid pivot from certain energy imports, driven by recent geopolitical events, shows that swift and large-scale change is possible with strong political will. The IEA has noted that Europe’s response reduced natural gas demand by over 20% in 2022 alone. Tailored approaches that respect unique regional challenges are necessary to ensure global progress.
For COP29 to be successful, it must focus on actionable plans rather than aspirational statements. This requires innovative financing, strong public-private partnerships, and comprehensive international cooperation that recognises and addresses the diverse challenges faced by different regions. Viewing climate action as an investment in a more prosperous, equitable future – rather than a cost – is essential.
The stakes at COP29 are high. The international community must prove that it can move beyond pledges and take meaningful steps toward a sustainable, low-carbon economy. Only through committed, collaborative action can the world hope to meet its climate targets and ensure a resilient future for all.
(Navdeep is an expert in Indian renewable energy and serves renewable and green energy company ReNew; Sunil is an energy and climate finance specialist and serves the World Bank, advising on energy storage, power sector financing, climate finance, decarbonisation strategies, and electric mobility)