Conference of the Parties 29 th Meeting (COP29): Report and Summary for the Liquid Gas Industry
United Nations Framework Convention on Climate Change (UNFCCC),
Conference of the Parties 29th Meeting (COP29)
November 11th – 22nd 2024
Baku, Azerbaijan
Report and Summary for the Liquid Gas Industry
COP29 Overview and Background:
The 29th annual meeting of the Conference of the Parties (COP29) under the United Nations Framework Convention on Climate Change (UNFCCC) was held from 11th to 22nd November 2024 in Baku. This was the first time a UNFCCC negotiation was held in Azerbaijan and the third year in a row that COP was held in a country under an authoritarian regime that is largely reliant on hydrocarbons for export revenue, a point of contention that was noted by many delegates and observers of the COP process, and which was further inflamed when a senior official from Azerbaijan’s COP29 team was caught by Global Witness using the negotiations as an opportunity to broker fossil fuel deals.
COP29 coincided with the most recent meeting of the G20 countries (held in Rio). It was billed as the ‘finance COP’ as it was the last COP in which the Newly Collective Quantified Goal on Climate Finance (NCQG – a new global commitment to mobilise finance to address climate change) could be agreed. It was also the last COP to be held prior to the submission of countries’ new NDCs covering the period through to 2035.
COP29 was held in a time of high geopolitical tensions which reduced the number of high-level political figure in attendance and influenced the dynamics of the conference. It was also held following the re-election of Donald Trump which also had a dampening impact on the tone of the negotiations. It is anticipated that the US will withdraw from the UNFCCC process as it did during his first term.
More than 55,000 people attended COP29, which although smaller than 2023’s COP28 in Dubai, still makes the Baku negotiations one of the biggest in UNFCCC history and confirms a trend of ever bigger COP meetings as heads of state, delegates, lobbyists, activists, ministers and journalists jostle for attention in these massive two-week negotiations.
Baku and the venue itself, which was a stadium on the city’s outskirts, were well suited to the negotiations. The Azerbaijani government pulled out all the stops in sprucing up the city, making logistics easy for delegates and managing the basics of the event. COP veterans understand that the quality of the venue and the organisation sets part of the tone of the negotiations and can have an impact on the eventual outcome.
COP29 Outcomes:
The meetings finally came to end on Sunday 24th November a full two days after the scheduled ending date and unusually dramatic final days that included walk outs, shouting matches and accusations that Saudi delegate tampered with official negotiation texts bypassing standard protocols. Some important outcomes for the Liquid Gas industry are:
Carbon Market Mechanisms
After many years of negotiations, COP29 finalised rules under Article 6 of the Paris Agreement, establishing a framework for international carbon markets. This development is expected to facilitate the trading of carbon credits between countries, potentially unlocking significant climate finance, particularly for developing nations. This could have a direct impact on our industry by increasing the opportunity to generate carbon credits for Liquid Gas projects that demonstrably reduce greenhouse gas emissions, such as initiatives promoting Liquid Gas as a cleaner alternative to traditional biomass for cooking. These credits can be sold in the carbon market, providing additional revenue streams. This could also make Liquid Gas more affordable and drive its adoption in regions reliant on more polluting fuels, thus expanding market opportunities for the industry.
Clean Cooking
Clean cooking which featured prominently in COP28 and led directly to the IEA’s Summit on Clean Cooking in Africa, was not high on the agenda in COP29. It is expected to return to prominence during COP30 in Brazil, as the Brazilian government has signalled that it wants to make energy justice and clean cooking important elements of those negotiations.
Climate Finance Agreement
A central achievement of COP29 was the establishment of a new climate finance goal. Developed nations committed to delivering at least $300 billion annually to developing countries by 2035. This funding is intended to support efforts in reducing greenhouse gas emissions and enhancing resilience against climate change impacts. Additionally, there is an aspiration to mobilise $1.3 trillion per year by 2035 from both public and private sources. It is not clear how this could impact the Liquid Gas industry.
Gender and Climate Justice
COP29 renewed the Gender Action Plan for an additional ten years, emphasising the integration of gender considerations into climate policies. This renewal underscores the recognition of the disproportionate impact of climate change on women and the importance of inclusive approaches in climate action. This is an issue where the role of Liquid Gas as a cooking fuel in developing countries has a profound impact and where the industry should consider investing some resources in creating messaging and communications.
WLGA Recommendations:
COP29 achieved progress in several key areas that impact the Liquid Gas industry, especially with the ratification of Article 6 on carbon market mechanisms. The Liquid Gas industry must continue its efforts to position our energy as one that will fit into the low carbon future in both developed and developing markets, whether by substituting biomass for cooking, or through the development of renewable alternatives. WLGA recommends continued engagement in the UNFCCC process with a focus on raising the awareness of WLGA members about this issue while also providing them with communications and messaging tools that can be deployed in educating their respective stakeholders.