COP29 is Coming: Everything You Need to Know About the Global Climate Summit

This November, all eyes will be on Baku, Azerbaijan, as the world’s leaders gather for COP29—the latest edition of the global climate summit.

In the lead-up to November, you'll see a surge in media coverage, social media campaigns, activists on roads, political discussions, and business conversations about COP29 and the future of our planet.

But what exactly is COP, and why is it such a big deal?

COP is one of the most significant global platforms for climate action, and the decisions made there will shape not only environmental policies but also economic trends and business strategies.         

From multinational corporations to micro-small and medium enterprises, understanding what happens at COP29 is critical. Climate regulations are tightening, and both consumers and investors are increasingly holding businesses accountable for their environmental impact. COP29 could define how businesses are expected to contribute to climate solutions—whether through emissions reductions, adopting sustainable practices, or engaging in new green markets.

This article will take you through everything you need to know about COP, its history, its importance today, and why businesses should pay close attention.

Why Is COP29 So Important?

COP29 is being hailed as the "finance COP", where the focus will be on mobilising huge sums of money to help countries, especially developing nations, deal with the impacts of climate change. This finance will support projects that help communities adapt to climate change, transition to cleaner technologies, and recover from disasters like floods, droughts, and wildfires.

Beyond governments, businesses will play a critical role in climate finance.

As the demand for greener investments and sustainable supply chains grows, companies will be expected to step up. This will also be an opportunity for them to update their climate commitments and scale up their efforts to reduce greenhouse gas emissions. COP29 will also provide clarity on emerging climate-related regulations and market-based solutions, such as carbon pricing and carbon credit markets—all of which will directly impact industries worldwide.

Before the media coverage reaches a fever pitch, let’s take a step back and explore how COP began, what it’s accomplished in the past, and what we should be watching for in November.

What is COP?

COP, short for the "Conference of the Parties," refers to a series of annual meetings where governments from around the world come together to tackle climate change. These meetings are organized under the United Nations Framework Convention on Climate Change (UNFCCC).

COP has its roots in the 1992 Earth Summit in Rio de Janeiro, where world leaders first recognised that human activities were having a serious impact on the climate. At that summit, 154 countries signed the UNFCCC, agreeing to work together to limit the damage caused by global warming.

The first COP took place in 1995 in Berlin, and since then, it has evolved into the primary forum for setting international climate goals, negotiating agreements, and holding countries accountable for their climate pledges. Each COP builds on the progress made in previous years, with some summits producing landmark agreements that shape global climate action.

Historical Highlights from COPs

Over the years, several COP meetings have stood out for their ground-breaking agreements and their influence on global climate action. Here are some of the key milestones:

COP21 (Paris, 2015)

This is perhaps the most famous COP, where the historic Paris Agreement was adopted. World leaders pledged to keep global temperature rise well below 2°C, and to pursue efforts to limit it to 1.5°C. The Paris Agreement also established a system for countries to regularly update their climate action plans, known as Nationally Determined Contributions (NDCs).

COP26 (Glasgow, 2021)

Held during a critical moment in the fight against climate change, this summit urged countries to strengthen their climate ambitions. The Glasgow Climate Pact was adopted, with countries agreeing to revisit their NDCs and pursue more aggressive actions to reduce emissions, including commitments to phase down coal and increase renewable energy use.

COP28 (Dubai, 2023)

This conference saw nearly 200 countries agree to “transition away” from fossil fuels for the first time in nearly 30 years of negotiations. However, the language was watered down under pressure from oil-producing nations, which allowed for continued fossil fuel production under certain conditions. Despite this, COP28 made some progress, including the establishment of a Loss and Damage Fund to help countries recover from climate-related disasters.

The Road to COP29: What to Watch For

As the world prepares for COP29 in Baku this November, the summit is not just a political event; it’s a moment that will reshape global markets, supply chains, and corporate strategies. For businesses, the decisions made in Baku will directly impact climate finance, regulatory landscapes, and market opportunities. As climate-related regulations tighten and the demand for greener practices grows, companies that proactively align with the goals of COP29 will be better positioned to thrive in the evolving economy. From investing in renewable energy and sustainable products to engaging in carbon markets, businesses have the chance to lead in the global transition to a more sustainable future. Here's what to watch for:

New Climate Finance Goal (NCQG)

A major focus at COP29 will be setting a new global financial target—the New Collective Quantified Goal (NCQG)—to replace the $100 billion commitment. With estimates suggesting the need for $500 billion by 2025 and potentially $1.5 trillion by 2030, the NCQG aims to mobilise massive funds for both mitigation and adaptation efforts. This financing is particularly crucial for developing countries that are disproportionately affected by climate change. The outcome of these negotiations will define how public and private sectors collaborate, influencing businesses across industries to align with emerging sustainability standards. For businesses, this presents an opportunity to invest in green technologies, diversify portfolios, and contribute to climate solutions, positioning themselves as leaders in the global shift toward a low-carbon economy.

Operationalising the Loss and Damage Fund

Following its establishment at COP28, the Loss and Damage Fund will be a key topic at COP29. This fund is designed to provide financial aid to countries most affected by climate disasters, such as floods, droughts, and wildfires. At COP29, negotiators will work on finalising the operational details, including how much funding is needed and which countries will contribute. Businesses that operate in or source from climate-vulnerable regions should pay close attention to these discussions, as the fund will help stabilize markets and supply chains impacted by environmental disasters. Additionally, companies may explore new opportunities to support disaster recovery efforts through innovative products, services, and financing solutions.

Updated Climate Commitments (NDCs)

As part of the Paris Agreement, countries are required to submit updated Nationally Determined Contributions (NDCs) every five years, outlining their plans to reduce greenhouse gas emissions. COP29 is a critical moment for nations to strengthen these commitments ahead of the 2025 deadline. With global temperatures rising and climate impacts intensifying, there is growing pressure for nations to scale up their climate ambitions. For businesses, updated NDCs signal tighter regulations and greater accountability for emissions reduction. Companies should prepare to enhance their sustainability strategies, adopting greener practices across operations, supply chains, and product development to remain compliant with future regulations.

Carbon Markets and Transparency

Carbon markets—where companies and countries trade carbon credits—will also be a hot topic at COP29. While carbon markets can generate much-needed funds for climate action, concerns about greenwashing and lack of transparency persist. At COP29, countries will debate how to regulate these markets, ensuring that they are fair, transparent, and effective. For businesses, clearer regulations and stronger standards could create more reliable carbon markets, providing a way to offset emissions and meet sustainability goals while avoiding reputational risks associated with ineffective or misleading carbon offset programs.

Challenges and Criticisms of COP

Despite the importance of COP meetings, they are not without their critics.

• The most glaring critique is the slow pace of progress and lack of accountability in implementing its agreements. For instance, while landmark treaties like the Paris Agreement have been signed, global emissions continue to rise, indicating a gap between commitments and tangible results. Many nations, especially in the Global South, argue that the promises made at COPs are often not backed by sufficient action or financial support.
• A primary point of contention is the disparity between developed and developing countries. Wealthier nations are historically responsible for much of the global greenhouse gas emissions, while poorer countries, who contribute the least, suffer disproportionately from climate change impacts such as rising sea levels, extreme weather events, and biodiversity loss. Under the principle of "common but differentiated responsibilities," developing nations expect greater action and financial support from industrialised countries to mitigate climate change and adapt to its consequences. A key example is the failure to fully deliver on the $100 billion annual pledge—an amount committed by developed nations to help poorer countries tackle climate change.
• Furthermore, COP’s voluntary enforcement mechanisms and reliance on good faith commitments have led to a perceived lack of accountability. Countries submit Nationally Determined Contributions (NDCs) detailing their emission reduction targets, but there is no binding enforcement mechanism to ensure these targets are met. This has resulted in a situation where countries can set insufficient or vague goals and fall short without facing consequences. Critics argue that this undermines the effectiveness of COP’s climate commitments, making it difficult to hold nations accountable for their pledges.
• In addition, the negotiation process itself has been criticised for being slow-moving and bureaucratic. The need for consensus among nearly 200 countries often results in watered-down compromises. For example, while COP28 achieved an agreement to “transition away from fossil fuels,” many saw it as insufficient, as it avoided a stronger commitment to “phase out” fossil fuel use altogether. The constant balancing act between ambition and political feasibility has led to frustration among climate advocates, who see urgent climate action being delayed by geopolitical interests.

Despite these challenges, COP remains the central platform for driving climate diplomacy. Its role in bridging the gap between scientific recommendations and political action is essential for global climate governance. COP provides a forum for diverse stakeholders—governments, businesses, civil society, and scientific communities—to negotiate solutions, share knowledge, and push for stronger commitments.

The Path Ahead

As we prepare for COP29, there’s both hope and urgency. The summit offers a chance to ramp up global efforts to combat climate change, but it also presents a challenge: will world leaders take the bold actions necessary to protect the planet, or will the progress be too slow to meet the scale of the crisis?

While the discussions in Baku will be complex, they are crucial. From raising climate finance to revising national commitments, COP29 has the potential to set a new course for global climate action. Now is the time to pay attention and push for the changes that will secure a safer, greener future for generations to come.

Call to Action

Is your business ready for the changes COP29 will bring?

As global expectations for climate action rise, companies that adapt will thrive, while those that don’t could fall behind.

At RTN Zero Consulting, we help businesses understand and navigate these regulatory shifts. Whether it’s aligning your strategy with new climate finance goals or preparing for carbon market regulations, we provide expert guidance to ensure you stay ahead.

Partner with us to future-proof your business and lead the charge toward a sustainable future. Let’s get started today.

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