The climate finance deal struck at COP29 commits developed countries to mobilising $300 billion annually by 2035 to help developing nations address climate challenges. This funding aims to support vulnerable countries in adapting to the impacts of climate change and transitioning to cleaner energy sources. However, the promise has already drawn sharp criticism, with many calling it inadequate and overly reliant on private sector contributions rather than direct aid.
To understand the frustration, it’s important to see the bigger picture. Developing nations had initially called for $1.3 trillion per year to adequately prepare for rising climate risks and fund a shift away from fossil fuels. Instead, the agreed $300 billion figure—while an increase from the current $100 billion annual goal—falls far short of this target. Worse, much of the pledged sum may come as loans or investments rather than grants, potentially adding to the financial burdens of already struggling nations.
India’s delegate, Chandni Raina, described the agreement as "an optical illusion," reflecting widespread dissatisfaction among the Global South. These countries, responsible for only a small fraction of historical emissions, are bearing the brunt of climate impacts and now face a solution that many view as too little, too late.
Beyond the moral imperative, climate finance also makes sense pragmatically. With 75% of emission growth in the last decade coming from industrialising nations, wealthier countries must support their transition to clean energy—or risk both their future and the planet’s.
The geopolitical dynamics at play also influenced the negotiations. With a second Trump administration on the horizon, a common concern among negotiators in Baku was the need to safeguard years climate negotiations from US impact. It was therefore unsurprising that wealthier nations pushed to lock in funding commitments by 2035, aiming to create a framework the US could re-join after Trump’s tenure. Similarly, efforts to broaden the base of contributors were also shaped with Trump’s potential impact in mind.
Meanwhile, China’s voluntary inclusion in the climate finance framework was viewed as a deft move, signalling its growing influence in global climate leadership as the United States’ role becomes uncertain.
COP29’s tepid results underscore a crucial reality: international agreements alone will not combat climate change. While governments wrestle over financial pledges and geopolitical hurdles, the planet continues to warm, and the window for effective intervention narrows. Businesses, with their ability to act swiftly and innovate, are uniquely positioned to drive meaningful progress in the absence of decisive global leadership.
1. Set Ambitious and Transparent Goals: Businesses should begin by defining clear, measurable sustainability targets—whether it’s achieving net-zero emissions, reducing waste, or improving energy efficiency. By integrating these goals into their overarching strategies, companies can ensure accountability and progress at every level.
2. Invest in Renewable Energy: Transitioning to renewable energy sources is a key step in reducing carbon footprints. From solar panels on corporate facilities to procuring energy through clean power agreements, businesses can drive demand for renewables while cutting costs and emissions.
3. Foster Sustainable Supply Chains: Environmental responsibility extends beyond direct operations. Collaborating with suppliers to adopt sustainable practices and improve transparency ensures that the entire value chain aligns with climate goals. This approach not only reduces emissions but also protects businesses from future regulatory risks.
4. Engage Stakeholders: Transparent communication about sustainability efforts fosters trust with consumers, investors, and employees. Sharing progress through ESG (environmental, social, governance) reports or other channels demonstrates commitment and invites collaboration.
5. Innovate for Sustainability: Developing green products and services not only addresses environmental challenges but also taps into growing consumer demand for sustainable solutions. Innovation in this space positions businesses as leaders in the transition to a low-carbon economy.
By taking these steps, businesses can bridge the gap left by slow-moving international agreements and drive a sustainable transformation that benefits both the planet and their bottom line.
FutureTracker is here to empower companies on this journey, offering the tools and insights needed to turn sustainability goals into tangible results. Together, we can chart a path toward a greener, more resilient future—because waiting for international agreements is no longer an option.
If you’d like to learn more about FutureTracker, get in touch with us at enquiries@futuretracker.com or learn more about our plans and pricing here.
