COP 29: Progress and Challenges

The 29th UN Climate Change Conference (COP29), held from 11 to 22 November 2024 in Baku, Azerbaijan, concluded with some progress toward global climate action despite significant challenges.  

Key headlines from the conference, after two weeks of challenging negotiations, included an agreement to triple climate-related financial flows and finalising the long-discussed global carbon market framework. 

COP29 has been called the “Climate Finance COP” because a key topic of discussion was increasing the new collective quantified goal (NCQG) – put simply, the funding that developed countries will provide to developing countries to support them to mitigate against and prepare for the more erratic weather patterns that climate change is creating. The current NCQG, set at $100 billion a year, is due to expire in 2025. Many participants at COP 29 called for this to rise to $1 trillion a year to meet the growing challenges ahead. The final agreement of $300 billion a year from across governments globally was strongly criticised by many developing country governments and the NGO community. 

During the closing of the COP29, UN Climate Change Executive Secretary Simon Stiell emphasised the critical need to follow through on these commitments, describing the new finance goal as an “insurance policy for humanity” that requires full and timely contributions. While acknowledging the challenges and compromises involved, Stiell urged governments to accelerate their efforts and create bold, transformative strategies ahead of COP 30 in Belém, Brazil.  

COP29 sessions offered support to country representatives in reviewing and updating their Nationally Determined Contributions (NDC’s) which are expected by February next year. NDC’s are plans that ensure country commitments align with emissions reductions required to limit global temperature rise to 1.5oC and prevent the worst excess of climate change.   

Work by our partner organisation Habitat for Humanity has unearthed some interesting statistics about how housing needs are addressed by different countries in their NDC plans. Their report states that, of the 194 NDC’s analysed, only 21% of countries demonstrate a high-level commitment to housing, 18% show moderate commitment, and 61% show a low commitment.   

This demonstrates that housing is not prioritised in many countries NDC’s despite its vital role in:  

• being a catalyst towards individual and community development and resilience in the face of an increasingly erratic climate with increases in excessive heat and flooding for example  

• reducing carbon emissions globally – 70% of the buildings required in Africa and Asia haven’t been built yet with the built environment sector currently creating 37 % of global emissions  

Kenya and India, two focus countries for Reall, were highlighted in the report as having good housing content in their NDC submissions such as action plans, including specific timelines, budgets and financing for housing-related climate adaptation and mitigation efforts.  

UNEP‘s annual Emissions Gap Report, published prior to each COP, sets out the scale of emission reductions countries must deliver through their NDCs. The report makes sobering reading, stating that remaining within the 1.5oC limit remains technically possible but it requires updated NDCs backed by whole government activity, enhanced collaboration and strong private sector action. Reall hopes the inclusion of sectoral analysis in the report, particularly the focus on the buildings sector as a contributor to climate change. Looking ahead, we are eager to see more explicit references to buildings, and specifically affordable housing, in future updates to NDCs.

At COP 29, countries reached an agreement to extend the Enhanced Lima Work Programme on Gender and Climate Change for another decade. This reaffirms the significance of gender equality and the need to integrate gender considerations throughout the climate agenda. 

After years of negotiations, COP29 made notable progress in advancing Article 6 of the Paris Agreement, which governs carbon markets. The conference adopted guidelines for Article 6.2, enabling carbon trading between countries through Internationally Transferred Mitigation Outcomes (ITMOs), and Article 6.4, which establishes a carbon crediting mechanism between countries and other entities, often considered a successor to the Clean Development Mechanism (CDM). A key outcome was the operationalisation of these market-based approaches, designed to support global emission reductions in a cost-effective way.  

The Buildings and Cooling Pavilion session titled “Buildings Climate Momentum: Buildings Breakthrough Milestones, Declaration de Chaillot’s ICBC, and the Road to COP30,” at COP29 highlighted progress on the Buildings Breakthrough, a global initiative under the Breakthrough Agenda framework aimed at driving a zero-emission, resilient building sector. Following its official launch at COP28 and the introduction of priority actions at the inaugural Buildings and Climate Global Forum in Paris in March 2024, the session showcased milestones, refined strategies, and discussed future objectives leading up to COP30.  

The Global Alliance for Buildings and Construction (Global ABC) has emerged as a vital platform for uniting architects, engineers, financiers, policymakers, and developers. As emphasised during the event, the complexity of the construction sector necessitates collaboration to build mutual trust and ensure that stakeholders work cohesively toward a decarbonized future.  

Kennedy Matheka, Deputy Director of Building Safety and Quality Assurance at the National Building Inspectorate under Kenya’s State Department for Public Works and Senior Country Representative at Intergovernmental Council for Buildings and Climate (ICBC), highlighted the critical role of the ICBC during the discussion. He emphasised the importance of the council as a platform for stakeholders and key partners to collaborate in advancing the Buildings Breakthrough initiative. He stressed the need for synergy, teamwork, and shared commitment to maximise the council’s potential to develop supportive regulatory frameworks, enhance investments, and create opportunities for sustainable growth. 

He also underlined the ICBC’s potential to better integrate the efforts of various actors in the sector, facilitating the development of impactful strategies that address regulatory and infrastructural gaps. This inclusive partnership aims to ensure that both governments and stakeholders can thrive while pursuing the best interests of the people. 

The World Green Building Council outlined a multi-phase approach to standardising near-zero emission buildings, focusing on establishing shared definitions and principles by 2025, creating measurable indicators to track progress, and aligning standards with the goals of the Paris Agreement. By COP30, the initiative aims to deliver a globally recognized framework to guide governments in adopting robust and effective building standards. 

One of the most impactful discussions centred on leveraging public procurement as a driver for market transformation. Jorge Laguna-Celis, Head of the 10YFP One Planet Network Secretariat at the UN Environment Programme, highlighted this approach, emphasizing the prioritisation of circular economy principles and life-cycle assessments in building projects. He highlighted the importance of encouraging governments to adopt sustainable procurement policies aimed at reducing waste and emissions while supporting skill development for professionals involved in sustainable construction practices. 

The discussion also highlighted the critical role of research institutions in driving innovation within the built environment. Key examples include the development of energy-storing construction materials, designing circular houses tailored to local contexts using recycled materials, and fostering interdisciplinary collaboration among scientists, architects, and policymakers.  

Another major focus was demand creation, with a particular emphasis on the role of public procurement in driving innovation and market transformation. The session discussed frameworks designed to incorporate circular economy principles and encourage the use of sustainable materials in construction. This approach aims to reshape the building sector by leveraging government procurement to create demand for green technologies and materials. 

In addition, the deployment of sustainable solutions was highlighted, with a life-cycle framework and a catalogue of proven solutions presented as resources for scaling sustainable practices across the sector. The session also emphasised the importance of capacity building, with discussions on the need for both institutional and individual skills development. This includes training for the enforcement of energy-efficient and resilient building codes, with plans for a collaborative portal to centralize best practices and training materials. 

The session highlighted the critical role of finance and investment in enabling the transition to sustainable buildings. Discussions focused on leveraging blended finance to reduce investment risks and creating roadmaps to guide the decarbonisation of the building sector. 

This session exemplified the collective effort needed to tackle the complexities of the building sector, which accounts for significant global greenhouse gas emissions. By fostering synergies across stakeholders and sectors, the Buildings Breakthrough initiative is paving the way for transformative actions ahead of COP30. 

At the Buildings and Climate Global Forum held in Paris in March 2024, Reall continued its active role in advocating for affordable, resilient, and sustainable housing. This forum, organised by the French Government, the Global Alliance for Buildings and Construction, and the United Nations Environment Programme (UNEP), brought together global stakeholders to accelerate the decarbonization of the built environment and drive climate resilience. The forum culminated in the launch of the Declaration de Chaillot, signed by 70 countries, which builds on the Buildings Breakthrough agenda introduced at COP28. 

Looking ahead to COP30, Reall remains committed to furthering its role in the Green Affordable Housing Finance (GAHF) initiative, with a focus on expanding its pilot projects and leveraging innovative financing mechanisms to build sustainable, resilient housing in emerging market cities. By fostering collaborations with peer organisations and leveraging lessons learned from past initiatives, Reall aims to demonstrate the transformative potential of financing solutions that derisk lending and accelerate green housing solutions. These efforts are in alignment with the Sharm El Sheik Adaptation Agenda set at COP27, the goals set at COP28 and the frameworks established by the Declaration de Chaillot, as Reall works to turn these visions into a reality and continue its mission to build a better tomorrow. 

  Co-written by Jayamali Kankanige and Clare Ollerenshaw