Financing the Paris Agreement and the carbon market must be the focus of COP29 discussions in Baku

Issues related to the financing measures foreseen in the Paris Agreement, discussions regarding the carbon market, and themes related to climate change adaptation and mitigation. These are the main topics Brazil expects to advance during the 29th United Nations Climate Change Conference, COP29, which will occur in Baku, Azerbaijan, from November 11 to 22.

In the case of the COP in Baku, the world's greatest attention will be on the issue of financing in the context of the Paris Agreement, which corresponds to the new stage of the yearly USD 100 billion, a commitment from the developed countries which, from our viewpoint and that of most analysts, has not been met over these past five years” – André Corrêa do Lago, the Ministry of Foreign Affairs’ secretary for Climate, Energy, and Environment

This Thursday, October 17/, the Ministry of Foreign Affairs’ secretary for Climate, Energy, and Environment, Ambassador André Corrêa do Lago, and the Ministry of the Environment and Climate Change's national secretary for Climate Change, Ana Toni, participated in a briefing session in Brasilia about Brazil’s participation at COP29. Both representatives were present at the Baku Pre-COP held on October 10 and 11.

 They highlighted the main topics expected to dominate discussions in Azerbaijan in November.

“In the case of the COP in Baku, the world's greatest attention will be on the issue of financing in the context of the Paris Agreement, which corresponds to the new stage of the yearly USD 100 billion, a commitment from the developed countries which, from our viewpoint and that of most analysts, has not been met over these past five years,” anticipated André Corrêa do Lago.

The Paris Agreement determined that developed countries must invest 100 billion dollars each year in measures to combat and adapt to climate change in developing countries. The agreement was established during COP21 in 2015 and approved by the 195 countries that participated in the event.

Also, regarding financing, Ana Toni explained that five prominent themes must be widely discussed: transparency, how much money there will be in the fund, who will pay, for how long, and what the fund will finance. “We are three weeks away from the COP, and these five large themes still hold a lot of tension and controversy around them,” underscored the secretary.

ADAPTATION AND COP30 – Regarding adaptation, Ana Toni explained that this is a critical issue for Brazil. She anticipated that the discussions and agreements obtained in Azerbaijan would guide what will be decided next year at COP30, which will be held in Belém, the capital of the Brazilian state of Pará.

“Much discussed at this Pre-COP, adaptation is a key theme for Brazil. Everyone knows that this theme must arrive at COP30 with indicators for the global goals and that COP29 must debate the global goals for adaptation. This conversation started at the Pre-COP and will naturally end at COP30,” stated the secretary.

Few countries have national adaptation plans. If I am not mistaken, very few are 47 out of the 194 countries at the UNFCCC. Brazil is one of those who do have a national plan. The national and international debate regarding this theme was interesting and presented interesting advancements from our perspective, too” – Ana Toni, National Secretary for Climate Change at the Brazilian Ministry of the Environment. 

NATIONAL ADAPTATION PLAN – In Brazil, the Climate Plan seeks to identify the best alternatives in terms of cost and effectiveness so that the country can cut emissions. The discussions consider actions such as fostering low-carbon agricultural practices, increasing energy efficiency, green hydrogen supply, using other low-emission fuels, and selective waste collection and energy from solid waste.

Ana Toni explained that this will also be a theme in which Brazil expects advancements in Baku. “Few countries have national adaptation plans. If I am not mistaken, very few are 47 out of the 194 countries at the UNFCCC. Brazil is one of those who do have a national plan. The national and international debate regarding this theme was most interesting and presented interesting advancements from our perspective, too,” revealed Ana Toni.

NDC – Acronym for Nationally Determined Contribution, NDC refers to a climate action plan that each country must present to reduce greenhouse gas emissions. The Brazilian Government has committed in its NDC to reducing these emissions by 48% by 2025 and by 53% by 2030, in relation to the 2005 emissions. In this way, Brazil commits to a more robust gradual process for emission reduction, aiming at a net-zero emissions goal by 2050.

Regarding the NDCs, Ambassador André Corrêa do Lago recalled that President Luiz Inácio Lula da Silva and the UN Secretary-General António Guterres will work together to strengthen these plans at the international scenario.

“In this Brazilian policy, in the context of the NDCs, it is worth noting that the UN Secretary-General and President Lula decided to work together in this direction, as announced at the UN General Assembly. The UN Secretary-General is extremely focused on the issue of climate change. He is one of the global figures striving to raise greater awareness of the climate emergency[EEVF1] [AP2]  we are experiencing. And the Secretary-General and the President have decided to work together to reinforce the NDCs with all the most important countries in combating climate change. This effort is already evolving and will have an impact at COP29, naturally aiming at COP30,” he stated.

CARBON MARKET—The carbon market is a system for negotiating carbon credits that aims to reduce greenhouse gas emissions. It will also be at the center of discussions in Baku. According to Ana Toni, it is a critical issue for Brazil.

“The carbon market directly relates to what is going on in Brazil. While we are having domestic discussions about the carbon market, which is yet to be voted on at our National Congress, the international area is in motion. We feel that it is moving faster and that we may arrive at the end of COP29 with an agreement,” the secretary anticipated.