Institutional Investors Group on Climate Change (IIGCC)’s Post

🌍 The UN gives (carbon) credit where it’s due Big news from #COP29: The UN has approved Articles 6.2 and 6.4, laying down long-awaited standards for trading carbon credits. 🔁 Article 6.2: Countries can now trade emissions credits directly, fostering decentralized collaboration. 🛒 Article 6.4: A centralized market for rigorously verified credits through the Paris Agreement Crediting Mechanism (PACM). Why this matters: 🌱 Unlocks potential for significant investments in Carbon Dioxide Removal (CDR) and emissions reduction projects. 🌍 Could shift billions in capital from high- to low-income regions, fueling global decarbonization efforts. ⚠️ But critics warn the fast-tracked process bypassed negotiation norms—raising questions about future COP governance. Could this finally tame the "Wild West" of the Voluntary Carbon Market (VCM) and drive billions in climate investment? The stakes are high, and the race for accreditation is on. For insights into carbon markets, funding highlights, and what's next, dive deeper with Sightline Climate. Plus, as always, in deals: 🚗 $5.8bn for EV manufacturers ⚡ $318m for renewable energy services across two deals ⚡ and $100m for micronuclear reactors. Read more here: https://lnkd.in/gccGj_Zc #ClimateTech #CarbonMarkets #NetZero #SightlineClimate

COP29 preview: What can we expect from this year? Last year’s COP boasted the largest number of attendees to date, with over 97,000 heads of state, government leaders, and industry figureheads making the journey to the UAE. But, does the number of attendees signify that change is on the way, or is it more room for verbal fodder? This year, as the world turns its attention to COP29 in Azerbaijan—another oil-rich nation—questions are surfacing about whether COP’s integrity and purpose are being upheld. So, what should we look out for? Here are the key topics and expected outcomes for #COP29 https://lnkd.in/grhsqzcn

Last week, COP29 came to an end. Here’s a snapshot of the key outcomes, a comparison with COP28, and a reflection on the unresolved discussions that will make their way into next year’s agenda of COP30. 👉 Key Achievements of COP29 - Climate Finance: Developed countries committed to providing at least $300 billion annually to developing countries by 2035, with a broader goal of scaling up finance to $1.3 trillion per year by 2035 from public and private sources. - Carbon Markets: After nearly a decade, COP29 finalised agreements on carbon trading under Article 6 of the Paris Agreement, including the operationalisation of the Paris Agreement Crediting Mechanism (PACM) and country-to-country carbon trading. - Adaptation: The Baku Adaptation Roadmap was launched together with a support programme for National Adaptation Plans (NAPs) for least-developed countries. - Loss and Damage Fund: The Fund became operational, with pledges increasing from $674 million to $759 million during COP29. However, loss and damage financing will not be included under the New Collective Quantified Goal (NCQG), and further discussions are deferred to future negotiations in June 2025. 👉 COP28 and COP29: A comparison - Climate Finance: COP28 laid the groundwork for the NCQG, but COP29 finalised the target, tripling the previous commitment. - Global Stocktake (GST): While COP28 conducted the first GST to assess the collective progress made by countries against the goals of the Paris Agreement and set parameters for new Nationally Determined Contributions (NDCs), during COP29, the focus shifted to implementing the outcomes and recommendations from the first GST. - Carbon Markets: COP28 did not achieve significant agreements on carbon markets, whereas COP29 made a major breakthrough in this area with Article 6. 👉 The Road to COP30 - Despite urgent calls from COP28 to transition away from fossil fuels, COP29 failed to reach a consensus on this critical issue, deferring it to future negotiations. - The Just Transition Work Programme (JTWP) also saw no agreement due to contrasts over human and labour rights, free trade measures, and financial support. - The process was accused of exclusion and lack of transparency, highlighting ongoing tensions between developed and developing countries. As we move forward to COP30, it's evident that while significant strides have been made, particularly in climate finance and carbon markets, there is still substantial work to be done. #COP29 #ClimateAction #ClimateFinance #CarbonMarkets

COP29 - key updates from Days 1-4 ▶ COP29 Agrees International Carbon Market framework for Article 6! "This will be a game-changing tool to direct resources to the developing world and help us save up to 250 billion dollars a year when implementing our climate plans." https://lnkd.in/g2F6Wavy ▶ Negotiations around the New Collective Quantified Goal (#NCQG) on Climate Finance remain stalled. The G77 + China coalition is calling for $1.3 trillion annually. https://lnkd.in/etkd8mfs ▶ The Multilateral Investment Guarantee Agency (MIGA), The World Bank’s risk insurance arm, has previously develop insurance solution for carbon markets, and today launched its Letter of Authorization template, a public good for securing insurability rights and standardizing host government commitments to investors https://lnkd.in/emNZcpxZ ▶ Additional ~$19M in Loss and Damage funding pledged by Sweden at COP29, bringing total pledged funding to more than $720M. Yesterday, the Philippines signs to be host country of the Fund board. https://lnkd.in/g8aar-qz ▶ Argentina ‘withdraws’ from #COP29, fuels rumours that country may pull out of Paris Agreement https://lnkd.in/eusNqA42 ▶ VCM, established under Saudi's Public Investment Fund (PIF) and Tadawul Group, launches voluntary carbon market exchange platform to channel finance to high quality climate projects, aiming to enable scale up of Saudi Arabia’s voluntary carbon market and support net zero goals https://lnkd.in/eqQnqGeC ▶ IETA and the #Article6 Implementation Partnership (A6IP) surveyed 100 participants and published the "Article 6 Business Pulse Survey – Unlocking Article 6 Potential: Trends, Opportunities and Hurdles" https://lnkd.in/eQ2QzXYK ▶ The European Commission has launched a new #Methane Abatement Partnership Roadmap to further accelerate the reduction of methane emissions associated with fossil energy production and consumption  https://lnkd.in/e_uVpk3A #cop #carbonmarkets #baku #netzero #planet2050

"The very clear message from the COP process in the last few years is the need for faster and more significant action. "But is it realistic to expect dramatic change?" In his latest Energy Diary, ANGEA Senior Advisor Neil Theobald looks ahead to COP29 in Baku and the topics, challenges and opportunities likely to dominate conversations. #energytransition #decarbonisation #decarbonization #cop29

🌍 After 10 Years of Debate, COP29’s Carbon Deal is Seriously Flawed ⚖️ A historic agreement was reached at COP29 in Baku, Azerbaijan, regarding the global trade of carbon credits, concluding nearly a decade of discussions. While the deal aims to facilitate carbon offsetting and support environmental projects, significant flaws have emerged that could undermine its effectiveness. 🔎 Key Highlights: 1️⃣ Controversial Carbon Trading: The agreement allows countries and companies to buy credits for reducing emissions elsewhere, but critics argue it could enable continued pollution without real reductions. This raises concerns about the integrity of the carbon trading system and whether it can genuinely contribute to global climate efforts. 2️⃣ Complex Negotiations: The carbon trading rules have proven challenging to negotiate. Despite some progress at previous COP meetings, many countries viewed the final recommendations as weak and lacking scientific rigour, leading to a rushed adoption process at COP29 that has drawn criticism. 3️⃣ Flawed Framework: The new agreement, the Paris Agreement Trading Mechanism, fails to establish minimum standards for “durable” carbon storage, allowing temporary solutions to offset long-term fossil fuel emissions. This could lead to over-reliance on ineffective natural systems, further complicating efforts to meet climate goals. 🗣️ #questionforgroup: What strategies can be implemented to strengthen the integrity of carbon trading systems and ensure they contribute to meaningful emissions reductions? How can stakeholders balance the need for immediate action with long-term sustainability? 🔗 To read more about the flaws in the COP29 carbon deal and its potential implications, click here: https://lnkd.in/gHSUyyVh #COP29 #CarbonTrading #ClimateChange #Sustainability #EnvironmentalPolicy #GlobalWarming #ParisAgreement #ClimateAction #EmissionsReduction #CarbonCredits

See you at COP 29 ? 🧐 Why it matters despite all criticisms👇 COP 29 at Baku is dubbed the "Finance COP". Moving money into the right impact areas... I will be there - in my role es "Industry Decarbonisation Lead" for the High-Level Climate Champions. Here are top 3 critical areas left open at COP 28, which are now even more urgent: 1️⃣ Operationalising Article 6 / carbon markets: Despite agreements on principles at previous COPs, Article 6 of the Paris Agreement, which governs carbon markets, has yet to be fully operationalised. This is crucial for ensuring that carbon markets effectively reduce emissions and prevent greenwashing. Achieving a robust framework for these markets is essential to mobilise capital for climate action. 2️⃣ Loss and Damage Fund: At COP 28 we saw some progress with pledges towards a 'Loss and Damage Fund', but substantial gaps remain in climate finance, particularly for adaptation and mitigation in vulnerable regions. COP 29 must address these gaps, ensuring sufficient and equitable financial support. 3️⃣ Phase-out of fossil fuels: While COP 28 marked a turning point by mentioning fossil fuels explicitly, the lack of a clear commitment to phase them out remains a contentious issue. This is critical for aligning global energy policies with climate goals and preventing further environmental degradation We got work to do ! What are your priorities? Please reach out & DM me for impactful meetings 🙌🏽 #circulareconomy #COP29 #linkedintopvoices

The same is said at #COP16EnCali Money. Where Is It Going To Come From? #COP29 focuses on financing the global energy transition, with a new goal of $1 trillion annually, up from the previous $100 billion. https://lnkd.in/eBZZnRjQ https://lnkd.in/eBZZnRjQ

🌍 After 10 Years of Debate, COP29’s Carbon Deal is Seriously Flawed ⚖️ A historic agreement was reached at COP29 in Baku, Azerbaijan, regarding the global trade of carbon credits, concluding nearly a decade of discussions. While the deal aims to facilitate carbon offsetting and support environmental projects, significant flaws have emerged that could undermine its effectiveness. 🔎 Key Highlights: 1️⃣ Controversial Carbon Trading: The agreement allows countries and companies to buy credits for reducing emissions elsewhere, but critics argue it could enable continued pollution without real reductions. This raises concerns about the integrity of the carbon trading system and whether it can genuinely contribute to global climate efforts. 2️⃣ Complex Negotiations: The carbon trading rules have proven challenging to negotiate. Despite some progress at previous COP meetings, many countries viewed the final recommendations as weak and lacking scientific rigour, leading to a rushed adoption process at COP29 that has drawn criticism. 3️⃣ Flawed Framework: The new agreement, the Paris Agreement Trading Mechanism, fails to establish minimum standards for “durable” carbon storage, allowing temporary solutions to offset long-term fossil fuel emissions. This could lead to over-reliance on ineffective natural systems, further complicating efforts to meet climate goals. 🗣️ #questionforgroup: What strategies can be implemented to strengthen the integrity of carbon trading systems and ensure they contribute to meaningful emissions reductions? How can stakeholders balance the need for immediate action with long-term sustainability? 🔗 To read more about the flaws in the COP29 carbon deal and its potential implications, click here: https://lnkd.in/g2JY9qs6 #COP29 #CarbonTrading #ClimateChange #Sustainability #EnvironmentalPolicy #GlobalWarming #ParisAgreement #ClimateAction #EmissionsReduction #CarbonCredits

COP29, dubbed 'the finance COP' has left many disappointed by its limited progress on critical issues like phasing out fossil fuels and addressing the vast financial gap for developing countries. The commitment to provide “at least $300 billion” annually in climate finance falls far short of the $1.3 trillion goal needed to drive meaningful action. However, amidst these challenges, there were significant developments for heavy industry and decarbonisation such as the launch of the Global Matchmaking Platform by the Climate Club, practical resources like the Industrial Deep Decarbonisation Initiative’s Green Public Procurement Guide and the Industrial Transition Accelerator’s Green Demand Policy Playbook, and continued efforts to harmonise standards for low-emission steel including a mapping of current methodologies by the World Steel Association (worldsteel). Read more insights from ResponsibleSteel on COP29 here ➡️ https://lnkd.in/d3nkSUp9 Mission Possible Partnership UNIDO #IDDI #COP29 #steel #decarbonisation #heavyindustry