Signals of Change: COP29 special
We Mean Business Coalition
Welcome to a COP29 special edition of Signals of Change.
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COP29: AMBITION + FINANCE = CORPORATE ACTION AND INVESTMENT
As governments and non-state actors gathered in Baku embark on the second week of the UN Climate Change Conference, the negotiations still have a way to go.
On Saturday leaders of major business organizations and networks, connecting more than 38,000 businesses around the world, signaled their concern about the lack of progress and focus in Baku. The statement was coordinated by the We Mean Business Coalition in collaboration with Mission 2025 and addressed to G20 Leaders, who meet in Rio de Janeiro today and tomorrow. It is a strong call to Heads of State and government to show leadership at the G20 and COP29 towards ambitious NDCs and a robust outcome on climate finance.
See the statement from business leaders to G20 governments here, covered in the Financial Times this morning.
Read on for more signals of change from the past week in Baku and beyond as we continue to show up in support of a COP outcome that delivers global finance to drive ambitious, investible and equitable national climate plans that unlock private sector action and investment. Meanwhile, businesses are signaling their readiness to invest and mobilize behind ambitious NDCs which will transform real world economies.
Notable highlights from week 1 of COP29
Women Leading on Climate
We Mean Business Coalition helped set the tone from the outset through harnessing the voices of women climate leaders in support of a letter organized by the Women Leading on Climate network, co-founded by We Mean Business Coalition and Climate & Nature Solutions, which was handed to the UN Secretary General António Guterres.
First national climate plans (NDCs) from the UK and Brazil
Governments have until early 2025 to publish their new nationally determined contributions (NDCs) as promised under the Paris Agreement, but some major economies have taken the opportunity of the world stage at COP29 to announce their new commitments. The UK set an ambitious tone with its new target to reduce emissions by 81% by 2035, based on 1990 levels. This goal, which aligns with limiting temperatures to 1.5C, surpasses the country’s previous domestic target to reduce emissions by 78%.
COP30 host Brazil announced a new NDC commitment of reducing greenhouse gas emissions by up to 67% by 2035, compared to 2005 levels, which also sets a high bar for climate leadership at this critical moment and sends a strong signal to international investors about the country’s commitment to a sustainable future. The target represents a reduction of 850 million to 1.05 billion tonnes of emissions.
Climate finance not yet on track
Referred to by some as “the finance COP,” climate finance is high on the agenda at COP29. As indicated in the open letter to G20 Leaders, there is concern on the progress made in week 1 and all eyes will be on Ministers gathering in Baku and Heads of State in Rio de Janeiro to unlock progress on this crucial element of global climate action. Ambition becomes action when backed with money. An agreement at COP29 to enable rapidly flowing, targeted public finance will unlock private investment, particularly in low- and middle- income countries, for a truly global transition.
Elsewhere at the conference, top multilateral development banks, including the World Bank and European Investment Bank, pledged to increase climate finance to $120 billion annually by 2030, marking a 60% increase from 2023. The Climate Investment Funds (CIF) Capital Markets Mechanism (CCMM) launched its bond listing on the London Stock Exchange, aiming to raise up to $75 billion (£58 billion) for clean energy projects in developing countries. Speaking at COP29, UK Secretary of State for Energy Security and Net Zero Ed Miliband said that the new mechanism will “mobilize billions more in climate finance… crucial for accelerating the global clean energy transition”.
Article 6 inches forwards
On the first day, negotiators agreed to adopt the standards for a global carbon market under Article 6.4 of the Paris Agreement, laying the foundation for countries to trade carbon credits. While other elements still need to be agreed, this represents a step forward towards the creation of a well-functioning, high integrity global carbon market which can support financing emissions mitigation projects in developing countries, while helping wealthier nations meet their climate targets.
Latest from the coalition:
Browse our COP29 We Mean Business Coalition Pavilion events, hosted in collaboration with We Mean Business Coalition sponsors and supporting partners.
Watch, read and listen to our key insights from COP29, including:
A just transition from fossil fuels to clean solutions
A pre-COP analysis from the IEA revealed that the global market value for the key six mass-manufactured clean energy technologies (solar PV, wind, electric vehicles, batteries, electrolysers, and heat pumps) grew nearly fourfold between 2015-2023, reaching over $700 billion — nearly half the value of the global natural gas market. With current policies, this clean technology market is set to triple to more than $2 trillion by 2035, potentially rivalling the value of crude oil.
In the first week of COP29, more than 60 countries, representing 80% of global emissions, have committed to new priority actions under the Breakthrough Agenda to cut carbon in high-emitting sectors like energy, transport, and steel. Highlights include the Hydrogen Action Declaration, with Kazakhstan and Singapore joining efforts to scale clean hydrogen, and the launch of a Global Framework for Near-Zero Emission Buildings. The UK and Germany also pledged $420 million to decarbonize industries in emerging economies.
The COP29 presidency has proposed a pledge to increase global energy storage capacity six-fold to 1,500 gigawatts by 2030 to support the surge in renewable power. With official backing by UK, Uruguay, Belgium and Sweden, this goal follows the commitment made at COP28 to triple renewable energy capacity by 2030 and could cut global emissions by 10 billion metric tons by 2030 compared to current projections.
Ingka Group, the largest Ikea retailer, pledged to invest a further €1.5 billion towards ending its reliance on fossil fuels, with a focus on energy efficiency and low-carbon heating and cooling. The investment will finance retrofitting 150 properties with energy-efficient features, such as low-carbon heating and cooling systems, and support the company’s aim to halve its emissions by 2030.
Meanwhile, the first annual update of the Global Zero Emissions Vehicles Transition Roadmap outlines strategies to support emerging markets in transitioning to ZEVs. Central to this effort is the ZEV Country Cluster Initiative, which focuses on collaboration among regions to scale deployment and address shared challenges, such as infrastructure and financing.
Protecting and restoring nature
Heading into the Climate COP, the recently concluded UN Biodiversity Conference (COP16) in Cali, Colombia, saw the creation of a new global fund for conservation. Aimed at compelling corporations to share a portion of the profits they generate from genetic data derived from animals, plants, or microorganisms, the Cali Fund is expected to raise up to $1 billion annually for biodiversity conservation efforts.
Ahead of its new climate commitments, Brazil announced a 31% year-over-year decline in Amazon deforestation from August 2023 to July 2024, marking the largest drop in 15 years. Meanwhile, deforestation in the Cerrado decreased by 25.7%, marking the first decline in five years.
The Integrity Council for the Voluntary Carbon Market (ICVCM) has approved three new nature-based carbon crediting methodologies, marking a significant step toward improved integrity in the carbon market. With the potential to generate over 400 million high-integrity carbon credits for REDD+ afforestation and reforestation project, these methodologies are aligned with the ICVCM’s Core Carbon Principles, ensuring they meet rigorous standards for impactful emissions reductions, alongside social and environmental safeguards.
DEEP DIVE: FROM COP16 TO COP29: INSIGHTS FOR BUSINESS LEADERS TO DRIVE ACTION ON NATURE, CLIMATE, AND PEOPLE
Not long before COP29, delegates were gathered at another Conference of the Parties: COP16 in Cali, Colombia. Our deep dive analysis gives reflections on the UN Biodiversity Conference (COP16), outlining three key takeaways for business leaders, focusing on the critical role of business in nature-related finance and governance, and the urgency of scaling up nature-based solutions for global climate and biodiversity targets. Read the deep dive analysis
Finance: standards and regulation
At COP29, CDP and the European Financial Reporting Advisory Group announced plans to align CDP’s disclosure platform with the European Sustainability Reporting Standards, to ease reporting for companies subject to the EU’s climate-related reporting directive. The collaboration aims to improve global environmental reporting efficiency.
Meanwhile, findings from the latest ISSB progress report highlight positive advancements in corporate climate reporting and transparency. In fiscal year 2023, 82% of companies aligned with at least one of the 11 TCFD recommendations, with 44% incorporating at least five disclosures. Additionally, 30 jurisdictions—representing 57% of global GDP and over half of global GHG emissions—are now incorporating ISSB standards into their regulatory frameworks.
Finally, the International Auditing and Assurance Standards Board has launched the International Standard on Sustainability Assurance 5000 (ISSA 5000). The standard aligns with the EU’s Corporate Sustainability Reporting Directive and other key frameworks like ISSB and GRI, focusing on both materiality and double materiality, marking a significant step in standardizing sustainability assurance practices globally.
COMPANIES TAKING ACTION
Over 17,900 companies are taking action through Coalition partner initiatives. See all companies who committed in the past month on the We Mean Business Coalition website.
Companies setting their ambition for net zero include:
- 9,062 companies working to cut their emissions in line with science through SBTi
- 8,513 small and medium-sized enterprises working to cut emissions with the SME Climate Hub
- 529 companies who have now signed the Climate Pledge, to reach net zero by 2040
Meanwhile, companies are driving down emissions through the following demand-side initiatives:
- 130 companies are accelerating the transition to electric vehicles with EV100, and 5 companies are kickstarting the transition to zero-emission medium- and heavy-duty vehicles with EV100+
- 129 companies are committed to improving their energy efficiency through EP100
- 435 companies have committed to 100% renewable energy with RE100
- 39 companies have joined ConcreteZero to create a market for net zero concrete
- 45 companies have committed to SteelZero to create a market for net zero steel
EVENTS
CAREERS
- Various posts at BSR
- Various posts at CDP
- Various posts at Ceres
- Various posts at CLG Europe (CISL)
- Various posts at Climate Group
- Various posts at WBCSD
- Various posts at SBTi