Over the last several months, the COP29 Presidency has engaged in an intensive period of dialogue with Parties and other stakeholders to shape a path forward for COP29 in Azerbaijan.
The COP29 Presidency’s vision is based on a plan built on two pillars: to enhance ambition and enable action.
On the one hand, the critical reporting and planning tools due in the coming years must signal strong ambition from all Parties and align to the target and ambitions set out in the Global Stocktake.
As COP29 host, we understand well this need for ambition. Azerbaijan will lead by example and is working towards preparing a 1.5°C-aligned Nationally Determined Contribution (NDCs) before November.
On the other hand, to enable action, we must reach important agreements on climate finance: agreeing to a new climate finance goal and finalising Article 6 to support the development of high-integrity carbon markets for climate positive action.
Progress on climate finance will send an important signal, to Parties and to the world, that the ambition we need to meet our climate goals will be supported by the resources required.
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What can Asean tell us about climate finance?
There is great opportunity to be found in the ambitious action required of each of us.
Through transparency, accountability and commitment in key plans and reports, we can establish further trust in the climate diplomacy process. And by laying out national mitigation and adaptation roadmaps to achieving 1.5ºC, we can help guide investment to the innovative projects that will help keep our goals within reach.
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As we face up to these challenges, we’re encouraged by the experience in Singapore and Southeast Asia.
Three things in particular stand out: Southeast Asia’s experience with climate finance, the opportunity for the region’s private sector to contribute, and the value of philanthropic contributions given Singapore’s emerging status for such activity.
Progress in guiding investment to where it can make the most impact requires providing clear, transparent roadmaps to investors.
Projects such as the Asean Taxonomy for Sustainable Finance can help to match funds with innovative projects that will accelerate the climate transition. They help ensure that funds flow where opportunity for progress lies.
And, crucially, they account for local differences and realities within common frameworks.
There is economic opportunity for the Southeast Asian region, too, in this process. But to unlock this opportunity fully, there is a need for the private sector to step up and step forward through driving innovation and aligning corporate investment plans with climate goals.
A recent report on Southeast Asia’s Green Economy highlighted almost US$300 billion ($403.14 billion) in new revenue pools that could become available to the countries in the region that take collective action to get on track for emission targets.
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Decarbonisation, scaled-up finance, innovation and clear paths to transition are all cited as potential catalysts for growth. Ambition makes good economic sense.
But these initiatives will not be enough. We need to mobilise all relevant actors, including the philanthropic sector, to deliver climate finance in an accessible way and build confidence that everyone is playing their part.
In instances where other actors may be unable to play a part, philanthropy can provide financing to underpin climate solutions.
Here, Singapore’s experience leveraging its status as a global financial hub and catalysing multi-stakeholder partnerships driven by philanthropy provides important clues as to how this could work in practice.
The Philanthropy Asia Alliance, for example, is helping foster innovation, drive momentum and scale impact in such areas with a focus on encouraging solutions tailored to local and regional realities through the participation of key partners.
Other strong foundations for action
Elsewhere across the region, we see encouraging signs related to other features of our Presidency’s agenda, including innovative financing approaches to a focus on the development of carbon markets.
Across the region, sixteen Asian nations have said they would provide carbon credits to the global market as part of their NDCs.
This kind of strong commitment to global, collective climate action will be critical as countries prepare to submit the next round of their climate action plans.
Taken together, we can build on these efforts towards further climate action. At COP29, we must conclude discussions related to the full functioning of Article 6 for deeper green capital markets.
Southeast Asia’s experience with carbon markets and green finance will be additive to efforts at COP29 as we seek to reach agreement on key tools to enable action and to implement the commitments we have made.
We will count on nations like Singapore, and others across the region, to share their experiences designing and deploying climate finance that effectively meets national and regional needs.
Developing shared solutions for climate action means that we must learn from the experiences of each Party.
Elnur Soltanov is the CEO of COP29 Azerbaijan
Revisit The Edge Singapore’s coverage of COP28 here.
