COP29 Advances Carbon Market Amid Finance Debates

The COP29 climate summit in Baku approved a UN-backed global carbon market for trading carbon credits to reduce greenhouse gas emissions. Despite this progress, debates continue over climate finance, with developing nations seeking over $1 trillion annually by 2030, while current commitments fall short. The conference emphasized the role of private financial institutions, as many companies exceed Paris Agreement emission targets. Geopolitical tensions and economic challenges, such as inflation and potential changes in US climate policy due to President-elect Trump's return, complicate negotiations. The first draft of the New Collective Quantified Goal for climate finance indicates a need for $5-7 trillion by 2030, but consensus is lacking. Developing countries demand grant-based, predictable funding, but developed nations have yet to commit specific amounts.