Critical Remaining Moments at COP29, Baku

As the COP29 negotiations in Baku enter their final days, the atmosphere remains charged with urgency to deliver a final text. Delegates from nearly 200 nations are working around the clock to resolve pivotal issues, yet several key items remain unresolved. Among them are the finalization of Article 6 rules governing the international carbon market, agreement on the timeline for the $1 trillion New Collective Quantified Goal for climate finance, and firm commitments to enhance Nationally Determined Contributions (NDCs) in line with the Paris Agreement’s ambitions. 

These decisions will have profound implications for businesses worldwide, shaping regulatory frameworks, market opportunities, and financial mechanisms that support a global transition to sustainability.

Article 6 Could Drive Innovation & Opportunity

Amid the complexity of the final negotiations at COP29, the discussions surrounding Article 6 appear to have garnered significant support and are poised for approval. 

Delegates have worked tirelessly to address longstanding issues related to transparency, double counting, and market integrity within the international carbon market framework. The draft agreements reflect a growing consensus among parties, recognizing the potential of an Article 6 mechanism to unlock global investments in carbon reduction and removal projects. 

If successfully gaveled through, these rules will provide businesses worldwide with the clarity and confidence needed to engage in carbon finance, fostering a market that supports ambitious climate goals while driving innovation and economic opportunity. This moment could mark a pivotal step toward operationalizing the Paris Agreement’s vision of collaboration and accountability in addressing the global climate crisis.

Global Finance Goal Disagreements Hinder Progress

While progress on Article 6 appears promising, the negotiations around establishing a new global finance goal remain far less certain. The new collective quantified goal, targeting $1 trillion annually in climate finance by 2030, represents an essential step in aligning global ambitions with the scale of the challenge. Yet, disagreements over the sources, structure, and distribution of this funding persist, threatening to undermine trust among nations and the broader credibility of the COP process.

Resolving this issue is crucial to demonstrate good faith, especially from wealthier nations, and to acknowledge the multifaceted financial requirements necessary to achieve such an ambitious target. Success will require contributions from multiple funding streams—public, private, bilateral, and multilateral. A strong commitment to this goal would signal to vulnerable nations that the global community recognizes the cost of adaptation, mitigation, and resilience building and is willing to mobilize the necessary resources. For businesses, clarity on this financial framework is essential to unlock the full potential of private-sector investment, build partnerships, and foster the innovation needed to meet global climate goals.

US Media Coverage of COP29 Fails to Account for Achievements

One of the ongoing frustrations for those closely following the COP process is the way it is covered by much of the US media. Headlines often focus more on discrediting the negotiations or predicting their failure than understanding the process or its immense achievements. This narrative obscures the fact that no other global negotiation track operates at the scale of the United Nations Framework Convention on Climate Change (UNFCCC). The COP process is unique in that it has built a global consensus (every country has veto power) through multilateralism, aligning the commitments of nearly 200 nations to an overarching framework for addressing climate change and establishing a process for continuous evaluation and increasing ambition.

Critics fail to acknowledge the magnitude of this achievement. I believe the ongoing dialogues and negotiations at COP foster the alignment necessary to address the global climate crisis, a challenge that transcends borders and requires a coordinated effort. 

For US businesses, a narrative that encourages ambition and leadership, rather than casting doubt, could reinforce the importance of engaging in and supporting these critical global efforts. Our media has a unique role in pushing the US government and private sector to step up and embrace the opportunities inherent in leading the global transition to sustainability.

The Impact of the US Election on COP29

The recent US election has not just been a specter hovering over the talks in Baku; it has created a tangible vacuum in climate leadership that other countries are rushing to fill. Without a strong federal presence from the US to push for bolder outcomes, momentum has shifted to other nations stepping forward with enhanced commitments. Just yesterday, several countries announced plans to align their NDCs with the Paris Agreement’s critical goal of limiting global temperature rise to 1.5°C.

For American businesses, this is both a challenge and a call to action. The absence of US federal leadership underscores the importance of private-sector and subnational actors in filling this gap. Meanwhile, other countries’ strengthened commitments are creating a more competitive international landscape for industries transitioning to low-carbon economies. US businesses must adapt to this new dynamic, recognizing that the climate leadership void is not waiting to be filled—it is already being claimed by nations that see the economic and environmental value in taking bold action.

Critical Decisions Remain while ASBN/C Members Advocate in Baku

While the negotiations unfold, the American Sustainable Business Network/Council is proud to have several member companies still on the ground in Baku, advocating for the private sector’s vital role in addressing climate change. Members at COP29 include Okeanos, Seneca Environmental, and the Carbon Business Council. 

Their presence underscores the importance of US business engagement in shaping climate policies that reflect the realities of commerce while promoting innovation and resilience. From the safety of my home in Vermont, I continue to monitor these developments closely. Even from afar, the stakes are palpable, and the outcomes of these discussions will resonate far beyond the halls of the Baku Convention Center.

The urgency in these final days is a reminder that business leaders must remain active partners in the climate conversation. By championing sustainable solutions and demonstrating bold leadership, the private sector can help ensure that the outcomes of COP29 are ambitious, actionable, and aligned with a prosperous future for all.