COP29 in Azerbaijan: Climate finance at the heart of the issues

Azerbaijan initiates discussions on climate finance ahead of COP29, planning to strengthen its climate targets.

Share:

COP29 Azerbaïdjan finance climatique

In preparation for COP29, host country Azerbaijan has begun negotiations with financial institutions, companies and countries on the thorny issue of climate financing. The Minister of Ecology and Natural Resources, Mukhtar Babayev, stresses the importance of finding a consensus to make climate finance operational. This move comes as the Baku conference approaches, marking a decisive moment for global climate commitments.

Reinforcing climate ambitions

Azerbaijan is considering raising its own climate ambitions in the run-up to COP29, despite the fact that the country’s economy is currently 90% dependent on oil and gas. Babayev, designated President of COP29, emphasizes the importance of a new global climate finance framework to support the overall climate agenda. This initiative aims to overcome the growing mistrust between developed and developing countries, exacerbated by limited progress on climate financing.

Energy and renewable targets

Beyond climate finance, COP29 will highlight issues such as water, land degradation, food security and agriculture. Babayev also mentions Azerbaijan’s aim to develop its renewable energy sector, while increasing its gas production. The country has not yet set a net-zero target, but has pledged to reduce its emissions by 40% by 2050 compared with 1990 levels, conditional on international support.

Preparations for the Copenhagen ministerial meeting

Climate ministers will meet in Copenhagen to prepare the agenda for COP29, with a likely focus on climate financing. Danish Climate Minister Dan Jorgensen stresses the importance of this meeting to assess the progress made since COP28 in Dubai, where world leaders agreed on an energy transition away from fossil fuels.

Despite its oil- and gas-focused history, Azerbaijan is striving to position itself as a reliable partner in EU gas supplies, seeking alternatives to Russian gas imports. The country is currently producing below its OPEC+ quota due to the decline of mature fields in the Caspian Sea, while at the same time experiencing an increase in gas production, reflecting its growing role in the European energy market.

Several international agencies have echoed warnings by Teresa Ribera, Vice-President of the European Commission, about commercial risks related to Chinese competition, emphasizing the EU's refusal to engage in a price war.
The European Bank for Reconstruction and Development lends €400 million to JSC Energocom to diversify Moldova's gas and electricity supply, historically dependent on Russian imports via Ukraine.
BRICS adopt a joint financial framework aimed at supporting emerging economies while criticizing European carbon border tax mechanisms, deemed discriminatory and risky for their strategic trade relations.
The European Commission is launching an alliance with member states and industrial players to secure the supply of critical chemicals, amid growing competition from the United States and China.
Trade between Russia and Saudi Arabia grew by over 60% in 2024 to surpass USD 3.8 billion, according to Russian Minister of Industry and Trade Anton Alikhanov, who outlined new avenues for industrial cooperation.
Meeting in Rio, BRICS nations urge global energy market stability, openly condemning Western sanctions and tariff mechanisms in a tense economic and geopolitical context.
Despite strong ties, Iran's dependence on oil revenues limits its ability to secure substantial strategic support from Russia and China amid current international and regional crises, according to several experts.
Egypt’s Electricity Minister engages in new talks with Envision Group, Windey, LONGi, China Energy, PowerChina, and ToNGWEI to boost local industry and attract investments in renewable energy.
The potential closure of the Strait of Hormuz places Gulf producers under intense pressure, highlighting their diplomatic and logistical limitations as a blockage threatens 20 million daily barrels of hydrocarbons destined for global markets.
Budapest and Bratislava jointly reject the European Commission's proposal to ban Russian energy supplies, highlighting significant economic risks and a direct threat to their energy security, days ahead of a key meeting.
Libya officially contests Greece's allocation of offshore oil permits, exacerbating regional tensions over disputed maritime areas south of Crete, rich in hydrocarbons and contested by several Mediterranean states.
Hungary, supported by Slovakia, strongly expresses opposition to the European Commission's plan to phase out imports of Russian energy resources, citing major economic and energy impacts for Central Europe.
Israeli military strikes on Iran's Natanz nuclear site destroyed critical electrical infrastructure but did not reach strategic underground facilities, according to the International Atomic Energy Agency (IAEA).
The French president travels to Nuuk on 15 June to support Greenlandic sovereignty, review energy projects and respond to recent US pressure, according to the Élysée.
Kazakhstan has selected Rosatom and China National Nuclear Corporation to build two nuclear power plants totaling 2.4 GW, a decision following a favorable referendum and coinciding with Xi Jinping’s upcoming strategic visit.
Israeli strikes against Iranian nuclear sites disrupt US-Iranian talks on the nuclear deal. Tehran now considers canceling the upcoming negotiation round in Oman, heightening regional economic concerns.
Facing alarming breaches of uranium enrichment thresholds by Iran and explicit existential threats, Israel launches targeted military strikes against Iranian nuclear infrastructure, escalating regional tensions dramatically.
The Kremlin has confirmed that Vladimir Putin aims to help resolve the nuclear dispute between the United States and Iran, leveraging strengthened strategic ties with Tehran.
President Lee Jae-myung adopts an energy diplomacy rooted in national interest, amid a complex international landscape of rivalries that could create challenging situations for the country and its energy businesses.
Paris and Warsaw held a bilateral workshop in Warsaw to strengthen coordination on electricity infrastructure investments and supply security under the Nancy Treaty.