The COP29 UN Climate Change Conference has concluded in Baku, Azerbaijan, marking an important moment in global efforts to tackle climate change. The European Commission and EU Member States played a central role in brokering a landmark agreement aimed at aligning global financial flows with the objectives of the Paris Agreement. At the heart of COP29’s outcomes is the New Collective Quantified Goal (NCQG) on Climate Finance, an agreement reached after two weeks of intense negotiations and years of groundwork, setting ambitious targets to address the financing gap that has long hindered climate action.

COP29 brought together nearly 200 countries in Baku and reached the breakthrough agreement that will:

• Triple finance to developing countries, increasing the previous goal of USD 100 billion annually to USD 300 billion annually by 2035.
• Mobilize USD 1.3 trillion per year in climate finance from public and private sources by 2035, ensuring scaled-up contributions from both public and private sectors. 

The NCQG provides for more countries to contribute finance, reflecting their growing emissions and economic weight. This was a critical EU demand to ensure that other countries do their fair share in providing and mobilising funding, matching their financial capacity. The agreement also strengthens the role of multilateral development banks (MDBs), maximising the leverage and impact of public funds by drawing in and mobilising significant private finance.

Next to the NCQG, other key outcomes of COP29 include: 

• Advancements in Carbon Markets: led by the EU negotiating team, COP29 finalized the rules for operationalizing carbon markets under the Paris Agreement. For country-to-country trading (Article 6.2), clear guidelines were established to ensure transparency and environmental integrity, while new registries will track carbon credit transactions. The centralized Paris Agreement Crediting Mechanism (Article 6.4) was launched, providing a robust framework to support developing countries, especially the least developed ones, in accessing carbon finance while safeguarding Indigenous rights and environmental standards.
• Enhanced Transparency in Climate Reporting: COP29 saw the successful implementation of the Enhanced Transparency Framework (ETF), requiring all Parties to submit Biennial Transparency Reports (BTRs) by year’s end. Thirteen nations, including the EU and several Member States, have already submitted their reports, setting an example for global transparency in climate action.
• Adaptation: The conference also saw the launch of the Baku Adaptation Roadmap, which places a strong emphasis on supporting National Adaptation Plans (NAPs) in least developed countries and small island states. High-level dialogues focused on innovative financing and technical support to help vulnerable nations translate adaptation strategies into actionable outcomes.