Developed countries dealt with criticism for failing to meet the $100 billion annual target by 2020 that aimed at supporting the developing countries' climate efforts. They were also criticized for depending on private sector investments and loans, tagged as climate finance, instead of making direct contributions. In order to channel the clause on climate finance, discussions focused on creating a New Collective Quantified Goal (NCQG) before the closing of COP29.
In order to keep climate temperatures rising in accordance with the Paris Agreement, it is necessary for worldwide climate finance to reach $9 trillion by the year 2030, as stated by the Climate Policy Initiative.
Dialogues on Article 6, which regulates international carbon markets, addressed the causative factor of some delays in its execution. Under the UN systems, two forms of carbon trading takes place. One is Direct Country-to-Country Trading under Article 6.2 and a Centralized International Carbon Market under Article 6.4. Both the article’s negotiations dealt with the authorization and authentication of carbon credits, and transparency in the reduction of emissions.
Another hot topic at Bonn Climate Change Conference was ‘global stocktake’. The outcome at COP28 involved a pledge to globally double energy efficiency and triple renewable energy developments by the year 2030. At Bonn, emphasis was placed on implementing these targets with the help of Nationally Determined Contributors (NDCs). However, disagreement was seen between nations over the operationalization of global stocktake.
While the developed countries stressed emission reduction and the elimination of fossil fuels as the key components of the updated NDCs, the developing nations highlighted discussions on finance, claiming that without sufficient fiscal backing, various climate action strategies will remain inexecutable. The need of the hour is holistic conversations to ensure purpose and responsibility in national climate strategies, especially given that the nations have started their preparation to submit the updated NDCs by the month of February 2025.
The Bonn Climate Change Conference stressed the importance of developments in climate finance, an operational carbon market, and the implementation of the Global Stocktake for NDCs. The forthcoming COP29 will act as a key element to bridge these gaps and strengthen international commitment towards combating climate change.
