The Conference of Parties (COP) is the world’s leading forum for addressing climate change, bringing together 197 countries and the European Union every year to set concrete commitments for reducing greenhouse gas emissions. Established after the 1992 Rio Earth Summit, COP has driven key agreements such as the Kyoto Protocol and the Paris Agreement, both aimed at keeping global temperature rise within 1.5°C.

In November 2024, COP29 took place in Baku, Azerbaijan, focusing on two strategic pillars:

1. Enhancing ambition: Each country was urged to present ambitious and transparent national plans to scale up emissions reduction efforts.
2. Enabling action: The mobilization of financial resources was identified as a key element in translating commitments into tangible results. This includes supporting adaptation strategies, mitigation efforts, and managing losses caused by climate change.

A key objective of COP29 was to strengthen the New Collective Quantified Goal (NCQG)*, which seeks to increase climate financing from developed to developing countries from $100 billion to $300 billion by 2035.

*NCQG: A new quantitative climate finance target benefiting the Global South.

The European Union positioned itself as a leader in climate action, anchoring its ambitious vision in the European Green Deal and Climate Law. Key targets include:

• Reducing net greenhouse gas emissions by 55% by 2030 (compared to 1990 levels).
• Achieving climate neutrality by 2050.
• Cutting emissions by 90% by 2040, aligning with scientific recommendations.

To support these objectives, the EU launched initiatives like the Clean Industrial Deal, aimed at decarbonizing industry, creating new jobs, and securing access to sustainable energy resources. Additionally, the EU Emissions Trading System (ETS) is being expanded to include transportation and buildings, while infrastructure for zero-emission vehicles is being promoted, with a full transition expected by 2035.

COP29 showcased significant technological progress, including the launch of methane emission monitoring satellites by Carbon Mapper and MethaneSAT. These tools can identify emission sources on a global scale, increasing transparency on methane—one of the most potent greenhouse gases.

Despite these promising technological developments, the obstacles to the climate transition remain numerous and complex. One of the main challenges is financing climate action, with wealthy countries expected to provide financial support to the most vulnerable ones. However, disagreements persist on crucial issues, such as balancing grants and loans and determining who should contribute the most—a debate that also involves major emitters like China and India.

Another challenge lies in the harmonization of carbon markets. While the EU has implemented an advanced emissions trading system, other countries, such as Brazil, are still in the process of developing their own schemes, complicating the interaction between national and international markets.

Recent events, such as the United States' withdrawal from the Paris Agreement during the Trump administration, demonstrate how political decisions can negatively impact green investments and slow down the climate transition.

Additional barriers include structural difficulties faced by many countries, which often lack adequate infrastructure, as well as the need to overcome cultural and economic barriers to implement green technologies on a large scale. This combination of factors makes the path to sustainability complex and costly, but not impossible.

Given the alarming data on global warming and its visible consequences, one question is inevitable: how serious is the situation? Is this our last chance to avoid climate catastrophe, or has the point of no return already been crossed?

At Regg3, we had the opportunity to discuss these challenges with Domenico Vito, a COP observer and member of our team, who participated in Baku’s negotiations and will attend COP30 in Belém. His insights highlight both critical unresolved issues and the challenges the international community will face in the coming months.

COP29 in Baku was a crucial moment for climate finance and international cooperation, but it also exposed deep divisions among nations. The New Collective Quantified Goal (NCQG) was meant to establish a clear financial commitment to support vulnerable countries, yet negotiations stalled over funding amounts, contributor responsibilities, and financing mechanisms, resulting in a weak agreement that satisfied neither developing nations nor Western economies.

Another unresolved issue was Article 6 of the Paris Agreement, which governs international carbon market cooperation. A lack of consensus prevented this mechanism from becoming an effective system for global emissions reduction.

COP30 will take place in a more complex geopolitical landscape. The U.S. withdrawal from the Paris Agreement, expected to take effect before the conference, could leave a $1 trillion annual funding gap, creating further obstacles to climate transition. This scenario makes it even more urgent to revise the NCQG, ensuring that climate finance becomes truly effective.

Beyond financial concerns, COP30 will be a litmus test for shared responsibility in a world where climate change knows no borders. Balancing national interests with global goals will be a critical challenge, especially in an era of increasing geopolitical fragmentation.

A positive aspect is that the conference will be held on the doorstep of the Amazon rainforest, a key ecosystem for global climate stability. This proximity may encourage world leaders to make more conscious decisions on biodiversity protection and deforestation reduction.

COP30 will be a turning point for global climate governance: will we overcome political and financial conflicts to build a more effective cooperation model, or will we continue delaying critical solutions for the planet’s future?