The COP29 summit in Baku, held between 11-22 November, has sparked conversations around the global climate agenda, focusing on corporate responsibility, climate adaptation, and the need for systemic change.
For instance, Gerben Hieminga, senior sector economist at at Dutch financial institution ING, and Coco Zhang, ESG research at ING shared that they are not convinced that COP29 will deliver any monumental milestones in climate policy – but think it’ll set the stage for more progress at COP30.
COP29 highlighted growing doubts about limiting global warming to 1.5°C, with a shift toward a 2°C target as more realistic, according to Hieminga and Zhang. Geopolitical challenges, such as pro-fossil fuel leadership, and “pessimistic” reports like the UNEP Emissions Gap Report reflect the slow progress in global climate action. Despite low attendance and a disconnect between negotiation topics and business contributions, some corporate leaders are pushing for net-zero commitments and industry coalitions. Corporate leaders are increasingly emphasising the need for systemic change, advocating for collaborative efforts and sustainable solutions such as green hydrogen and carbon pricing to address climate challenges. At COP29, there is a strong focus on strengthening voluntary carbon markets to enhance carbon reduction efforts. However, they added that many stakeholders express a clear preference for mandatory carbon markets, viewing them as a more effective and reliable mechanism to drive meaningful and measurable climate action.
The agricultural sector received a spotlight during COP29’s Food, Agriculture, and Water Day, with the launch of the Harmoniya Climate Initiative for Farmers. Allegra Ianiri, research analyst, MainStreet Partners explained: “This initiative aims to streamline the implementation of climate-agriculture projects, building climate-resilient agri-food systems through innovation and technology.”
Focus areas such as regenerative farming practices, precision strip-till farming, enhanced-efficiency fertilisers, and water-saving technologies. The initiative also promoted tools capable of reducing agricultural water consumption by up to 80%.
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A global methane reduction declaration was also launched at COP29 this year, requiring countries to set sector-specific targets in their Nationally Determined Contributions (NDCs) under the Paris Agreement. Over 30 nations, including 8 of the top 10 methane emitters, have endorsed the declaration, aligning with the Global Methane Pledge to reduce global methane emissions by 30% by 2030.
According to Ianiri: “The declaration signals a growing demand for innovative technologies, including methane-reducing feed additives, anaerobic digestion systems, biogas production, and methane capture solutions. Companies may also need to invest in or expand waste segregation systems, organic recycling, and composting facilities to comply with emerging standards.”
David MacDonald, founder of investment adviser Path Financial touched upon the importance of COP29 amid global political shifts, especially in the context of Donald Trump’s re-election. MacDonald suggested this could benefit green investments.
Trump’s promises to repeal Biden’s Inflation Reduction Act are unlikely to materialise fully, meaning clean energy investments will persist, he argued. He also highlighted the influence of Elon Musk in maintaining a focus on clean energy, stating: “The concept of Making Automobiles Great Again by going back to ICE seems unlikely. Trump, as a businessman, knows the future must be embraced.”
MacDonald pointed out that Trump is expected to tame inflation, potentially benefiting green and clean-tech industries. “As high interest rates and inflation recede under Trump, green and clean-tech should naturally bounce back with a capital vengeance,” he suggested, pointing to recent struggles of smaller companies and start-ups due to rising rates. While green investments may thrive, oil and gas could face challenges, as increased oil supply may lower prices and reduce profitability for major producers.
“Of the funds we use (which hold multiple stocks and industries), many of those with a sustainability focus have done well. For example, Janus Henderson US Sustainable equity, up 6.36%; Pictet Water, up 2.44%; Impax Environmental Leaders, up 1.80% in the same fortnight that the pollution-heavy FTSE100 and Shell have seen losses,” said MacDonald.
Despite some scepticism, the summit has set the stage for meaningful progress ahead of COP30, offering practical insights for businesses and policymakers to drive action.
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