- COP29 agreed on $300 billion annual climate finance by 2035, against the developing nations’ demand of $1.3 trillion.
- A global carbon market framework was finalized, allowing countries to trade emissions reductions under Article 6 of the Paris Agreement.
- Developing countries, including India, raised concerns about climate-related trade barriers like Europe’s carbon border tax (CBAM).
The COP29 climate summit in Azerbaijan concluded with a focus on finance and carbon markets. Developed nations agreed to provide $300 billion annually to climate-vulnerable countries by 2035, far short of the $1.3 trillion demanded by developing nations. A roadmap to review this target and assess progress will stretch until COP30 in Brazil and beyond.
India welcomed some aspects, such as reforms for easier access to global climate funds, but criticized the deal as inadequate to address the climate crisis. The summit also finalized carbon market rules under Article 6, paving the way for countries to trade emissions reductions. While this could benefit India’s planned carbon trading market, experts warn of potential loopholes like “junk” carbon credits.
India also pushed back against trade policies like Europe’s CBAM, arguing they hinder the transition to low-carbon economies. Future summits will address such concerns, with COP30 in Brazil seen as an opportunity to build on progress made in Baku.
