At the COP29 UN Climate Change Conference, the European Union reaffirmed its leadership in global climate action by securing a landmark agreement on climate finance and finalizing enhanced rules for international carbon markets. These developments underscore the EU’s commitment to aligning global financial flows with the Paris Agreement objectives and setting ambitious new standards for emission reductions.
Key Achievements at COP29
New Climate Finance Goal: $1.3 Trillion by 2035
The EU successfully spearheaded the adoption of a New Collective Quantified Goal (NCQG) for Climate Finance, broadening the contributor base and enhancing funding mechanisms:
- The NCQG commits to mobilizing $1.3 trillion per year by 2035, with developed countries leading by contributing $300 billion annually to support developing nations.
- For the first time, contributions will include those from emerging economies, reflecting their growing emissions and economic capacity.
- Multilateral development banks (MDBs) will play a pivotal role, leveraging public funds to attract private investments and maximize impact.
Advancing International Carbon Markets
The EU finalized rules under Article 6 of the Paris Agreement to ensure greater environmental integrity and transparency:
- A new crediting mechanism (Article 6.4) will establish UN-backed standards for high-quality carbon offsets.
- Enhanced tracking and recording systems will bring clarity to bilateral carbon deals, fostering cost-effective emission reductions.
EU’s 1.5°C Commitment and New Initiatives
- The EU announced plans to present a 1.5°C-aligned Nationally Determined Contribution (NDC) next year, raising the bar for global climate ambition.
- A partnership with the Beyond Oil and Gas Alliance was launched to drive the transition away from fossil fuels.
- The EU unveiled its Methane Abatement Partnership Roadmap to accelerate methane emission reductions in collaboration with partner countries, NGOs, and development banks.
Biennial Transparency Report (BTR)
The EU published its first Biennial Transparency Report (BTR), demonstrating its commitment to accountability under the Enhanced Transparency Framework of the Paris Agreement.
Background
EU Climate Leadership
The EU remains a global leader in climate action, having reduced greenhouse gas emissions by 37% since 1990 while growing its economy by 70%.
- With the European Green Deal, the EU aims for climate neutrality by 2050, legally enshrined in the European Climate Law.
- The EU’s 2030 target is a 55% reduction in net emissions compared to 1990 levels, with plans to legislate a 90% reduction target for 2040.
Largest Global Provider of Climate Finance
In 2023, the EU contributed €28.6 billion in public climate finance and mobilized an additional €7.2 billion in private finance to assist developing nations in reducing emissions and adapting to climate impacts.
A Call for Global Collaboration
With these milestones achieved at COP29, the EU continues to set a precedent for international climate cooperation. The agreements on climate finance and carbon markets highlight the importance of global partnerships in achieving a sustainable future.
For more details on the EU’s climate initiatives and COP29 outcomes, visit www.europa.eu/climate.