Baku, Azerbaijan: In an innovative initiative, Azerbaijan, the host of this year’s COP29 in November has issued a public letter to all countries urging enhanced climate actions. This approach aims to secure a crucial deal to increase financial support from developed nations. Azerbaijan has labelled COP29 (the 29th Conference of Parties to the UN Framework Convention on Climate Change) as a “litmus test” for the effective implementation of the 2015 Paris Agreement and for global climate action and cooperation.
Typically, hosts of climate conferences engage with other nations through bilateral or multilateral meetings throughout the year to build consensus on key issues. However, for the first time, Azerbaijan has opted for an open letter to communicate its vision for the conference and highlight pressing issues that need resolution.
What is being done differently this time?
At COP29, Azerbaijan is taking a unique approach by setting up a Climate Finance Action Fund (CFAF). This fund aims to draw contributions from fossil-fuel-producing countries and companies to assist poorer nations in coping with the climate crisis. The funds will be allocated to projects that reduce greenhouse gas emissions (GGE) and bolster resilience against extreme weather events.
Yalchin Rafiyev, the chief negotiator for the COP29 presidency highlighted the innovative nature of this initiative: “Traditional funding methods have proven to be inadequate to the challenges of the climate crisis, so we have decided on a different approach. The fund will be capitalized with contributions from fossil-fuel countries and companies and will catalyse the private sector. Any developing country will be eligible to receive money from the fund.”
However, contributions to the fund are voluntary and there is no mechanism to mandate payments from the countries and companies most responsible for greenhouse gas emissions. This has drawn criticism from various quarters. Bronwen Tucker, the public finance lead at Oil Change International (OCI), remarked, “This is a dangerous distraction from the strong new climate finance goal and national plans that COP29 must ensure for a fair, full, and fast fossil fuel phase-out.”
Despite these concerns the fund marks a pioneering attempt within UN climate negotiations to link fossil fuel-producing countries and industries to the responsibility of aiding vulnerable nations. Harjeet Singh, the global engagement director at the Fossil Fuel Non-Proliferation Treaty Initiative (FFNTI) said, “While the announcement of a new fund for developing countries echoes the longstanding demands for holding the fossil fuel industry accountable, it must not serve as a free pass for continued extraction of gas, oil, and coal.”
Critics also argue that the voluntary nature of the Climate Finance Action Fund falls short of what is needed to address the climate crisis effectively.
“The involvement of fossil fuel-producing countries and companies in the decision-making process has raised concerns about conflicts of interest. Tucker emphasized, “Polluters must pay for their climate crimes on the scale of trillions, not with a $1 billion voluntary fund that gives Big Oil decision-making powers.”
Azerbaijan seeks to raise at least $1 billion from at least 10 countries and major companies to capitalize the fund, which will be headquartered in Baku. The overseeing board will comprise representatives from the contributors and operate independently of existing multilateral development banks, including the World Bank.
Azerbaijan has pledged to contribute to the fund but has not yet specified the amount. No other countries have signed up so far. The fund will not invest in any fossil fuels, including gas, and any profits generated, for instance in renewable energy, said to be reinvested into the fund, ensuring no opportunity for profit-taking by private investors or governments.
The initiation of peace in warring states.
The host nation of the conference, has also proposed a bold initiative for COP29 by positioning it as the first “Peace COP.” This proposal aims to leverage the conference to promote peace in warring states, focusing on preventing future climate-fuelled conflicts and using international cooperation on green issues to heal existing tensions.
The idea includes asking nations to observe a “COP truce” suspending hostilities for the duration of the conference, akin to the Olympic truce observed during the summer and winter Olympic Games. Hikmet Hajiyev, foreign policy adviser to the president Ilham Aliyev, emphasized the potential of this initiative: “Azerbaijan continues and will exert additional efforts to make COP yet another success story with regard to peace and to make COP29 a COP of peace alongside the climate action issue.”
This initiative is particularly poignant given Azerbaijan’s own history of conflict, most notably the long-standing dispute with neighbouring Armenia. The recent peace deal between Azerbaijan and Armenia has influenced Azerbaijan’s focus on promoting global peace at COP29. Hajiyev highlighted this experience saying “Our approach to the peace agenda is living by example.”
Some sceptics question the feasibility and sincerity of the proposal given Azerbaijan’s own complex human rights record and ongoing tensions with Armenia. Mary Robinson, former president of Ireland and UN high commissioner for human rights, acknowledged the significance of the peace focus but expressed reservations: “I’m not sure the peace with Armenia is a perfect peace, to say the least. There are very big issues. There are political prisoners, I am part of a campaign to try to get them released. We should hold (Azerbaijan) to account for their own human rights record.”
Exploration of future possibilities for Azerbaijan.
As Azerbaijan hosts COP29 the country stands at a crossroads with significant opportunities to shape its future, particularly in renewable energy and climate resilience. The event presents a platform for Azerbaijan to showcase its leadership in these areas and to build a more sustainable and resilient economy.
The US State Department’s 2024 Investment Climate Statement report on Azerbaijan highlights the country’s substantial potential for wind and solar energy development, both onshore and offshore. Azerbaijan aims for renewables to constitute 30% of its total installed electricity capacity by 2030. The focus is on developing solar, wind, and hydropower plants, with foreign investors playing a crucial role in these projects. The statement notes, “Competition in the renewable energy sector could drive positive developments, including increased investment, innovation, and socioeconomic benefits.”
Azerbaijan has already taken steps towards this goal, inaugurating a 230-megawatt solar power plant in October 2023. Additionally, the country is actively working on creating a green energy corridor from the Caspian Sea to Europe. This initiative aligns with broader efforts to diversify Azerbaijan’s economy away from its traditional reliance on oil and gas.
Moreover, Azerbaijan is leveraging its strategic geographical position on the Trans-Caspian International Transport Route (TCITR), also known as the Middle Corridor. This trade route links China and the European Union through Central Asia, the Caucasus, Türkiye, and Eastern Europe. The Azerbaijani government is investing in its rail system and expanding its port facilities to handle increased cargo flow, enhancing its role in global trade.
Azerbaijan’s commitment to creating green corridors is a key aspect of its environmental strategy. Elnur Soltanov, Deputy Energy Minister and COP29 CEO, highlighted the importance of these efforts during a presentation on “COP29: In Solidarity for a Green World.” He pointed out the pressing water issues facing the South Caucasus region, exacerbated by rapid population growth, environmental pollution, and inefficient use of water resources.
The creation of green corridors is part of Azerbaijan’s broader strategy to address these challenges by promoting sustainable development and environmental stewardship. Soltanov emphasized that the 2024 UN Climate Change Conference (UNCCC) will be a pivotal moment for Azerbaijan to advance these goals.
Azerbaijan’s COP29 Action Agenda.
In conjunction with its other significant initiatives, Azerbaijan’s COP29 Presidency has announced its Action Agenda Initiatives. According to the official COP29 X (formerly Twitter) account:
“COP29 Action Agenda Initiatives announced! This package of 14 initiatives encourages stronger partnerships, fosters collaborative efforts, ensures investment, and catalyses public and private sectors – in solidarity for a greener world.”
While the announcement reflects Azerbaijan’s commitment to advancing global climate action, the effectiveness of its proposed initiatives will ultimately determine the impact of this year’s conference on global climate policy and its tangible results. (This article first appeared on DNLNews.)
