World water news: COP29 concludes

At last year’s COP28 gathering, world leaders reached a historic agreement signalling “the beginning of the end” of the fossil fuel era. Negotiators from nearly 200 parties met in Dubai, landing on decisions to increase climate action before the end of the decade to stay within the global temperature limit of 1.5°C.

This year in Baku, Azerbaijan, the question was who will pay for this transition. 

In this edition of World Water News, we highlight perspectives and takeaways from COP29, which ran from November 11-22, 2024.

“This year is all about money,” said Akshat Rathi of Bloomberg. “It’s labelled the finance COP. The private sector is not directly involved in these negotiations. But because the energy transition and all these climate goals [require] trillions of dollars invested annually, there is no way that happens without the private sector participating.” 

Financing the transition

The centrepiece of COP29’s financial discussions was the agreement by developed nations to a new climate finance target of $300 billion annually. While this represents a tripling of the $100 billion annual pledge set in 2009, it remains far short of the more than $1 trillion per year sought by developing nations to fund clean energy projects and bolster resilience.

Reaching the $1.3 trillion target in annual finance by 2035 would require contributions from “all actors,” Time reports. “To get there would mean that the $300 billion in public money would be supplemented by private sector investment as well as capital from countries like China that don’t technically count as developed countries in the U.N. framework but still have considerable wealth.”

Nonetheless, UN Climate Change Executive Secretary Simon Stiell framed the agreement as “an insurance policy for humanity,” emphasising that while the deal is a critical step forward, the work ahead remains immense.

Progress on carbon markets

Another significant outcome from COP29 was the establishment of rules for a UN-backed global carbon market. This mechanism is designed to incentivise emissions reductions and investments in climate-friendly projects by enabling countries to trade carbon credits. COP29 lead negotiator Yalchin Rafiyev commented, “today, we have unlocked one of the most complex and technical challenges in climate diplomacy. Article 6 is hard to understand, but its impacts will be clear in our everyday lives. It means coal plants decommissioned, wind farms built and forests planted. It means a new wave of investment in the developing world.”

Water on the agenda

A key moment at COP29 was the Baku Dialogue on Water for Climate Action. This initiative brought together high-level representatives, with nearly 50 signatories from the European Union, Finland, Gambia, Moldova, the Netherlands, Slovenia, the United Kingdom, the United Arab Emirates, the United States and other nations, ensuring that water remains a focal point in global climate discussions. The agreement commits to an integrated approach to counter the impacts of climate change on water basins, with the goal of creating greater regional and international cooperation. 

Reflections from sustainability leaders

Throughout the summit, experts shared their perspectives on how to accelerate progress:

• Sophia Leonora Mendelsohn, Chief Sustainability and Commercial Officer at SAP: “Digitising sustainability data removes one more barrier to decarbonisation at scale… [It’s time to] track the carbon footprint of individual products to target the most polluting value chain stages and maximise impact.”
  
• Katharine Hayhoe, Chief Scientist, The Nature Conservancy: “The outcomes [of COP29] reveal both progress and persistent challenges…These issues underscore why COPs need reform — and why real climate action must extend far beyond these summits. Global change hinges on local action, and every one of us has a role to play that begins with starting conversations about climate solutions where you work, live or study.”
  
• Freedom-Kai Phillips, Director, Deloitte Center for Sustainable Progress: “The agreements highlight the critical role played by the private sector in mobilising climate finance and driving sustainability solutions…Looking ahead, the private sector will be expected to take the lead in developing financial solutions, innovating climate-focused technologies and translating the outcomes of COP29 into tangible actions.”
  
• Ed Miliband, UK Secretary of State for Energy Security and Net Zero: “The clean-energy transition is happening and it is unstoppable because economic prosperity and tackling the climate crisis now point in the same direction.”

Lubomila Jordanova, co-founder of Greentech Alliance and founder and CEO of Plan A —  software for carbon accounting, carbon reduction and ESG reporting — offered companies recommendations for immediate actions before end of year:

Evaluate your carbon footprint: Conduct a detailed carbon audit to identify your company’s greenhouse gas emissions across all operations and establish a baseline for action.

Tap into climate finance: Identify and apply for funding from climate finance initiatives designed to support sustainable business innovations.

Stay up to date on Nationally Determined Contributions: These may get more specific following COP so monitor changes and assess their impact on your industry.

Communicate your strategy: Keep stakeholders informed with regular updates on your climate action plans, progress and commitments.

Strengthen resilience: Implement adaptation strategies to safeguard your operations against the growing risks of climate impacts, ensuring long-term sustainability.

Read her full list of recommendations here.

It’s clear that the path to a sustainable and water-secure future demands not just commitments, but action. The question is not only who will lead this transition but how we can all contribute in local, global and immediate ways.

Discover more insights on setting and achieving corporate sustainability and ESG goals.