The 29th UN Climate Change Conference (COP-29) took place in Baku, Azerbaijan from 11 to 24 November 2024. This time, the focus was on financing climate protection goals in the countries of the Global South, which are heavily affected by climate change. The estimated annual need is $1.3 trillion – in the end, only $300 billion per year was announced.
The 1.5 degree target is barely achievable
Now, raising $300 billion by 2035 – a compromise that could only be agreed upon during the extension of the conference – is no easy feat. However, in the end, it is not even a quarter of what is actually needed to take even the most important measures to combat climate change or adapt to its effects. Beyond that, there was much discussion, including again the phase-out of coal, oil and gas by 2030 that was envisaged at COP28, although it was not reflected in the outcome document.
One of the few tangible results of COP29 concerned emissions trading: it will now be possible to transfer emissions reductions from one country to another, rather than just from company to company, as was previously the case. As a result, industrialized countries could support tree-planting projects in the global South, for example, which could eventually count towards their own emissions targets – trading that is subject to significant risks of success and could ultimately prove to be little more than a drop in the bucket. All this comes as leading scientists agree that the vaunted 1.5 degree target set at COP21 in Paris in 2015 is unlikely to be met. On the contrary, unless something is done immediately, forecasts predict that global warming will quickly rise to 2 degrees or more.
Regardless of the outcome of the climate summit, there is no doubt that efforts to stop climate change should be directed beyond public funding. Business in particular could make an even greater contribution to achieving climate goals if it made more decisive and targeted efforts to reduce greenhouse gas emissions – there are certainly incentives for this.
Responsible companies are already taking action: they draw up greenhouse gas balances and carbon footprints, implement energy and environmental management systems and can demonstrate tangible progress on climate change. The main goal is to significantly reduce gas emissions and enter the CO2 certificates trade from legally unregulated (voluntary) markets only after their own emission reduction options have been completely exhausted.
Emissions trading offers a number of benefits for all parties involved, including the global climate at risk, but with some minor limitations:
- CO2 price fluctuations: For example, during a crisis, the price of certificates can fall sharply, causing the incentive to use low-emission technologies to also fall sharply.
- Exclusion of sectors: Agriculture, as a significant source of greenhouse gas emissions (especially methane and nitrous oxide), cannot participate in emissions trading, reducing the effectiveness of the instrument.
- Free emissions: Large industries have long benefited from the distribution of free emissions allowances, which has stimulated profitable resale instead of having a positive impact on the climate.
Quite a few projects, mainly those aimed at creating supposed CO2 sinks that are actually supposed to be supported by the purchase of certificates, do not deliver what they promise or are criticized for other reasons. This applies, for example, to the high-profile planting of trees to absorb CO2 from the air, which is often ineffective in terms of climate protection, since the projects are poorly implemented or simply not implemented. Such certificates are then not even worth the paper they are printed on.
Management systems as effective tools against climate change
Implementation and certification of management systems according to ISO 14001 and ISO 50001 is the first choice, since it helps to solve emission problems. In addition, it is also recommended to use suitable tools, such as ISO 14064-1 or the Greenhouse Gas Protocol for the preparation of balances or ISO 14067 for the preparation of life cycle assessments of products, etc.
