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SAFETY4SEA

COP29 puts shipping under pressure to strengthen climate commitments

by The Editorial Team
November 25, 2024
in Sustainability
COP 29

Credit: UNFCCC

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Mid-November became a pivotal moment for global climate action as world leaders, activists, and experts gathered for COP29—the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC).

With high stakes and anticipation in the air, the event brought renewed focus to the urgent challenge of combating climate change and charting a transformative path. Held in Baku, Azerbaijan, from November 11–22, 2024, COP 29 brought together representatives from nearly 200 countries to negotiate and advance policies and actions to combat climate change.

Alas, this meeting faced significant criticism for achieving less impactful outcomes compared to its predecessors. For example, COP28 secured a landmark global agreement to transition away from fossil fuels in energy systems, triple renewable energy capacity, and enhance climate resilience. In contrast, COP29 struggled to deliver similarly ambitious breakthroughs, leaving many disappointed.

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In any case, the finance agreement at COP29 is significant for the shipping industry. As countries prepare to submit stronger Nationally Determined Contributions (NDCs) next year, targeting all GHGs across all sectors, the shipping industry faces increasing pressure to decarbonize and align with global climate goals.

New collective quantified goal on climate finance (NCQG)

The centerpiece of COP29 was the adoption of the NCQG, which triples financial commitments to developing countries. Funding will increase from $100 billion to $300 billion annually by 2035, with an overarching goal of mobilizing $1.3 trillion annually from public and private sources. This boost aims to drive the global transition to clean energy, create jobs, and bolster resilience against climate disasters.

According to Simon Stiell, Executive Secretary of UN Climate Change, this new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country. But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives.“ It will keep the clean energy boom growing, helping all countries to share in its huge benefits: more jobs, stronger growth, cheaper and cleaner energy for all,” Stiell explained.

While some delegations applauded the deal, many from the developing world, including Bolivia and Nigeria, expressed their deep disappointment at what they argued was an “insultingly low” financing target and that the agreed text failed to significantly build on an agreement last year at COP28 in Dubai calling for nations to “transition away from fossil fuels”.

India’s representative strongly denounced the new goal, calling it a “paltry sum” and emphasizing, “We seek a much higher ambition from the developed countries [and the amount agreed] does not inspire trust that we will come out of this grave problem of climate change.”

A representative from a group of small island nations said: “After this COP29 ends, we cannot just sail off into the sunset. We are literally sinking,” and the conference outcome highlighted “what a very different boat our vulnerable countries are in, compared to the developed countries”.

Reducing transport emissions

Secretary-General Dominguez attended COP29 to share the latest developments in delivering the IMO GHG Strategy, including those related to ongoing negotiations towards a new set of binding economic and technical ‘mid-term GHG reduction measures to decarbonize the maritime sector.

IMO Secretary-General Arsenio Dominguez reminded participants that international shipping carries more than 80% of international trade and has already improved its energy efficiency performance by over 20% since the first IMO climate regulations came into force.

I wish to highlight just one aspect which I think is key in achieving ambitious strategies in all transport modes – the need for abundant, safe, affordable and environmentally sustainable fuels and energy sources. While the end-fuels may vary across different transport sectors, we can work together to scale up the demand, and thereby boost the production and supply of zero- and near-zero fuels.

… said Arsenio Dominguez 

IMO emphasized advancements in shipping efficiency, achieving over 20% improvement since implementing its first climate regulations, while promoting carbon pricing and multi-modal transport solutions in collaboration with UNECE.

Meanwhile, the International Civil Aviation Organization (ICAO), IMO, and the United Nations Economic Commission for Europe (UNECE) united around a shared vision to reduce greenhouse gas (GHG) emissions in transport sectors, emphasizing low- or zero-carbon fuels, innovative technologies, and sustainable practices.

A key highlight was the signing of a Call to Action by Bunker Holding and Lloyd’s Register Maritime Decarbonisation Hub to accelerate the adoption of zero-emission fuels. Organised by RMI, the UN Climate Change High-Level Champions, the UCL Energy Institute, and the United Nations Foundation, the Call to Action demonstrates strong industry momentum to invest in decarbonisation through scalable zero-emission fuel pathways.

Furthermore, Mitsui O.S.K. Lines (MOL) played a prominent role, with Chief Sustainability Officer Tatsuro Watanabe emphasizing the importance of carbon dioxide removal (CDR) technologies and the adoption of alternative fuels.

The Resilience4Ports initiative added a vital dimension to the sector’s decarbonization efforts, urging global port operators to adopt strategies that build resilience against climate disruptions. The initiative outlined a framework for integrating climate risk management into port systems while ensuring the safety of workers and surrounding ecosystems.

Meanwhile, Höegh Autoliners and Fortescue jointly advocated for the fast-tracked adoption of green ammonia as a sustainable marine fuel, marking a pivotal shift away from conventional bunker fuels.

Carbon markets and Article 6 progress

COP29 achieved significant progress under Article 6 of the Paris Agreement by finalizing frameworks for international carbon credit trading and crediting mechanism. These mechanisms prioritize environmental integrity while creating financial opportunities for least developed countries. They are designed to reduce the cost of implementing climate plans and expedite global emission reductions.

Advancing transparency in climate reporting

Transparency took center stage with the rollout of Biennial Transparency Reports (BTRs) from 13 countries. These reports enhance accountability and provide a data-driven foundation for strengthening climate policies. This development marks a major step toward fulfilling the Enhanced Transparency Framework of the Paris Agreement.

Adaptation and resilience: The Baku adaptation road map

COP29 launched the Baku Adaptation Road Map to address the growing need for climate resilience. This initiative supports vulnerable countries by promoting innovative financing and technical aid for National Adaptation Plans (NAPs).

Promoting gender equality and inclusive participation

The conference extended the Lima Work Programme on Gender and Climate Change, reaffirming commitments to gender equality in climate action. A new gender action plan will be developed at COP30. Inclusivity was a hallmark of COP29, with 55,000 participants from diverse sectors engaging in discussions, including children and youth in leadership roles for the first time.

Looking forward

While COP29 achieved significant milestones, unresolved issues remain. The focus now shifts to COP30 in Belem, Brazil, where next November countries will continue working toward actionable outcomes on outstanding climate challenges.

COP29 puts shipping under pressure to strengthen climate commitmentsCOP29 puts shipping under pressure to strengthen climate commitments
COP29 puts shipping under pressure to strengthen climate commitmentsCOP29 puts shipping under pressure to strengthen climate commitments
Tags: climate changeCOP 29decarbonizationfuture of shippinghighlightssustainability
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