COP: Count US Out, Up Your Climate Game

Abstract of this article appeared in The Times of India

Trump’s re-election is a stark wake-up call for all nations. They must increase their climate finance and mitigation targets for 2035 and beyond without relying on Washington

The 29th UN Climate Conference (COP29), held in Baku, Azerbaijan, from November 11 to 22, has opened under ominous circumstances. The re-election of Donald Trump as U.S. president looms over the event, reviving memories of his first term, when he withdrew the U.S. from the Paris Agreement, halted climate funding, and significantly slowed international climate progress. During those years, the U.S. largely stood on the sidelines, often obstructing negotiations through proxies. Aside from partial progress at COP24 in Katowice in 2018—where the “rulebook” for implementing the Paris Agreement was advanced—Trump’s presidency was largely a setback for climate action.

Now, as global leaders gather in Baku, they face the possibility of similar inaction and obstruction from the U.S. The pressing question, therefore, is whether the world can afford another four years of inaction. If not, what strategies should countries pursue to advance international climate goals independently of the U.S.?

Falling Short: Recent data from international agencies reveal that, despite record-breaking investments in clean energy, the world remains off track to meet the Paris Agreement targets. In 2023, nearly $2 trillion was invested in clean energy projects—almost twice the amount invested in new oil, gas, and coal infrastructure. Yet, current policies and investments are leading the world toward a dangerous trajectory, with global temperatures likely to increase by more than 3°C.

This shortfall is largely due to the inadequate emission reduction efforts by G20 countries, which collectively account for roughly 80% of global greenhouse gas emissions. A UN Environment Programme assessment shows that several major economies—including the U.S., Canada, Japan, Australia, China, and Saudi Arabia—are not on course to meet their 2030 emission-reduction pledges, known as Nationally Determined Contributions (NDCs). While countries like India are projected to meet their NDCs, their overall emissions are expected to increase as they expand energy use to support basic development needs.

Against this backdrop, COP29 in Baku must tackle three interlinked priorities: scaling up climate finance, establishing effective carbon market rules, and setting the next phase of NDCs for 2035 and beyond.

Climate Finance: Dubbed the “Finance COP,” COP29’s primary focus is on climate finance. The conference is tasked with setting a new climate finance target, known as the New Collective Quantified Goal (NCQG), to support vulnerable and developing countries in combating climate change. This NCQG is intended to replace the previous target established in 2009, when developed nations committed to providing $100 billion annually by 2020. However, independent assessments reveal that this $100 billion goal was only reached in 2022, two years late, and much of the funding was in the form of loans, which has exacerbated debt burdens in many developing countries. The current need for climate finance is now far greater than in 2009.

A recent UN evaluation estimates that developing countries require around $500 billion annually, with some other projections suggesting that over $1 trillion is needed each year. At COP29 in Baku, developed countries must agree on the scope of the NCQG in a way that meets the needs of developing nations. Yet, with Trump’s U.S. unlikely to contribute significantly, the question remains: What will other developed countries offer? Will Baku see only a symbolic financial pledge, or will it result in substantial funding to spur global climate action?

Carbon Trading: Closely tied to climate finance is the contentious issue of carbon markets. In recent years, carbon markets have been a focal point in negotiations due to their mixed impact. On the one hand, they have potential to generate funding for climate mitigation; on the other, issues like fraudulent accounting and greenwashing have undermined their credibility. These concerns stalled agreement on carbon market rules in the past few COPs, but Baku is expected to finalize and operationalize these rules to restore trust and ensure integrity.

Setting New Targets: While many countries are not on track to meet their 2030 NDCs, new targets for 2035 are required by early 2025. COP29 is likely the last major opportunity to clarify expectations for post-2030 climate targets. These goals, however, are intertwined with outcomes on climate finance and carbon markets. An ambitious NCQG would allow developing countries to commit to higher targets, while a robust and transparent carbon market could empower developed countries to set more ambitious targets through emissions offsetting.

While COP29 in Baku is an important milestone, the odds of achieving an ambitious outcome appear slim considering the likely backtracking by the US. In addition, Azerbaijan, a significant oil and gas producer, is not known for climate leadership, so expectations must be tempered.

The key question facing the world now is how to drive global climate action without relying heavily on the US. I believe that over-reliance on U.S. leadership has been the main reason for the shortcomings of global climate progress. The US has never been a climate leader. Since 1992, when the first global climate agreement was signed, the US emissions have only reduced by 3%, meaning they have remained virtually unchanged in the last three decades. Furthermore, the U.S. has not been a major contributor to climate finance, often falling short on its commitments.

Trump’s re-election should, therefore, be a stark wake-up call, highlighting the need for a more diverse, multipolar approach to climate leadership. Just as global power structures are evolving into a multipolar landscape, climate governance must follow suit. Countries like China, India, the EU, Russia, South Africa, Turkey, Saudi Arabia, and Brazil are well-positioned to champion climate action within their respective regions, fostering a more resilient and collective approach.

By distributing climate leadership across multiple nations, the world has a better chance to unify and make substantial progress on this existential crisis, without being stalled by any one country’s political shifts.