What is COP29 and Why Does it Matter for Business?

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11 November 2024

ThisWeekinFM Partner Planet Mark explores the expectations and potential outcomes from COP29. 

From November 11–22, 2024, in Baku, Azerbaijan, this year’s UN climate summit—nicknamed the “Finance COP”—will go beyond setting high-level targets. While finance is a central theme, COP29 also aims to drive forward policies on fossil fuel transition and tighter climate commitments, helping ensure that our economy, including businesses, is ready to lead in the low-carbon future. Here’s why COP29 matters for businesses of all sizes—and how you can make a difference.

 

What’s COP, and Why is COP29 Different?

 

COP, short for the Conference of the Parties, is the UN’s annual climate summit where leaders from around the world gather to tackle climate challenges. This year’s COP is unique. COP29 is laying the groundwork for COP30, where ambitious long-term goals will be set, with a sharp focus on finance. From mobilising funding for vulnerable nations to advancing policies for a fossil fuel transition, COP29 is about real-world impacts that will shape business regulations and open new doors worldwide.

 

Why Businesses Should Care

 

The outcomes of COP29 will shape the business landscape, bringing changes in emissions standards, supply chain requirements, and climate finance. Businesses that align with these changes early on will be better positioned to lead and thrive.

 

Updating Nationally Determined Contributions (NDCs)

Countries are set to submit new NDCs—climate action plans—by early 2025. As these targets tighten, businesses will need to prepare for stricter regulations, especially around Scope 3 emissions across supply chains. Taking action now will give businesses a competitive edge in meeting these standards, which are expected to vary by region and industry.

 

The New Climate Finance Goal

COP29 aims to set a New Collective Quantified Goal (NCQG) for climate finance, potentially reaching up to $1 trillion annually by 2025. This funding will support essential climate initiatives, especially in developing countries. As UN Climate Chief Simon Stiell noted, climate finance is the “great enabler of climate action.” For businesses, this goal is a chance to align with global climate strategies, explore renewable energy innovations, and invest in climate-resilient technologies.

 

Making the Loss and Damage Fund Operational

Introduced at COP27, the Loss and Damage Fund is back on the table at COP29. This fund is designed to support countries most impacted by climate change, with a focus on building resilience. COP29’s goal is to operationalise this fund, helping countries prepare for and respond to climate impacts. For businesses with global supply chains or operations in vulnerable regions, this means staying prepared for shifting risks and prioritising sustainable practices.

 

Transition from Fossil Fuels

COP29 seeks stronger commitments to transition away from fossil fuels, building on the steps taken last year. As energy systems evolve, businesses will need to adopt cleaner energy sources and improve efficiency, positioning themselves as leaders in a sustainable, low-carbon economy.

 

How Businesses Can Engage

The journey to net-zero is something we share. As COP29 sets the stage for urgent climate action, businesses that lead the way now will help create a more resilient, sustainable future. This is a valuable opportunity to innovate, build resilience, and make climate action a core part of your business advantage.

For a deeper understanding of what COP29 means for your business, join our partner Planet Mark for their COP29 Event Series. Planet Mark will be monitoring COP29 developments and outcomes from London, sharing daily updates across their social channels, as well as hosting Business Briefing Webinars before and after the summit.

Discover the events here:

 

• Hybrid Event – In Person and Virtual: The UK COP29 Ambition Acceleration Leaders Forum with Octopus Electric Vehicles – Wednesday, November 20^th, 5:00 - 8:00 PM 
• Webinar: COP29 Business Debrief – Outcomes & Impact – Wednesday, November 27th, 1:00-2:00 PM

 

Picture: a graphic from the official COP29 press kit, illustrating a wind farm with multiple wind turbines set against a red sky. Image Credit: COP29

Article written by Planet Mark | Published 11 November 2024

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