COP29 Day 4: Azerbaijan Delays Climate Fund Launch, Finance Talks Remain Slow
Azerbaijan had planned to unveil its flagship initiative—the Climate Finance Action Fund (CFAF)—on COP29’s ‘finance day’. However, the controversial climate fund is on hold, while progress on the climate finance talks remains slow. The CFAF’s objective is to raise at least $1 billion primarily to support clean energy projects, energy efficiency, and climate resilience in developing nations that rely on voluntary contributions from fossil fuel-producing nations and companies from developed nations.
COP29 President Mukhtar Babayev had previously described the fund as a “significant step” for communities looking for action, not just words. However, when the time came, the fund was noticeably absent from the agenda. A high-profile event to launch the CFAF was cancelled, and the initiative was placed on the backburner.
Azerbaijan’s chief negotiator, Yalchin Rafiyev, explained that a working group had been formed to refine the concept and ensure it was acceptable to potential donor countries. “It’s a very complex process to establish a new fund,” Rafiyev said.
The decision to delay the CFAF was reportedly due to ongoing tensions over the post-2025 climate finance goal (NCQG). Developing countries were allegedly wary that contributing to Azerbaijan’s fund could set a precedent for them to also contribute to the NCQG.
Environmental groups have largely welcomed the postponement, with Andreas Sieber from 350.org calling the fund a “distraction” and “greenwashing.” “Putting money into a fund while expanding fossil fuels is like pretending to put out a fire while feeding it more fuel,” Sieber said.
Azerbaijan was also expected to announce a new climate action plan (NDC) at COP29, but it has not yet done so.
Finance Talks Stall as Deadline Approaches
Progress on COP29’s key outcome—the post-2025 climate finance goal—remains sluggish. Negotiators arrived in Baku with a nine-page draft text, but after discussions, it was expanded to 34 pages. On Wednesday, the co-chairs attempted to shorten it again, but they ended up only reducing it by one page.
Negotiators are expected to continue discussions behind closed doors on crucial issues like transparency, reporting, and how to ensure climate finance actually reaches those who need it.
Top economists recently released a UN-backed report calling for a massive increase in climate finance, urging advanced economies to triple their existing commitment from $100 billion to $300 billion per year by 2030. The report also stressed the importance of private sector and multilateral development bank support, along with greater cooperation between developing nations.
COP29 Day 3: Finance Text Still in Flux, Brazil Updates Climate Targets
Support for Global Treaty on Critical Minerals
Campaigners at COP29 are rallying behind Colombia’s call for a global treaty on the mining of critical minerals needed for the energy transition, such as lithium, cobalt, and nickel. These minerals are crucial for clean energy technologies but have often been linked to human rights abuses and environmental damage.
Suneeta Kaimal, CEO of the Natural Resource Governance Institute, argued that voluntary standards have not been enough and a binding agreement is needed to ensure traceability from mining to recycling.
Zimbabwe’s president, Emmerson Mnangagwa, also spoke out, warning against repeating past mistakes where resource-rich countries remain trapped in poverty while others reap the benefits. Mnangagwa brought up the need for more investment in Africa’s mineral industries rather than just exporting raw materials for processing abroad.
Calls for a fairer, more sustainable approach to critical mineral extraction are growing at this year’s COP. Several world leaders stand against making the mistakes of the past and ensure that the benefits of the energy transition are shared more equitably.
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