The UN Climate Change Conference (COP29), held in Baku, Azerbaijan, has closed with a historic agreement to triple climate finance to developing countries, aiming to reach USD 300 billion annually by 2035. A broader target of USD 1.3 trillion per year from both public and private sources was also set, creating a significant shift in global climate finance policy.
Known as the New Collective Quantified Goal on Climate Finance (NCQG), this breakthrough comes at a time when developing nations, including the Maldives, face increasingly severe climate threats. With rising sea levels and intensifying weather patterns, the Maldives is among the nations that stand to benefit most from the agreement.
Implications for the Maldives
For the Maldives, the NCQG offers a lifeline. The substantial increase in climate finance is expected to support adaptation projects, infrastructure upgrades, and renewable energy initiatives. These funds can accelerate the Maldives’ transition to climate resilience, safeguarding communities from rising sea levels and extreme weather events.
The Maldives’ dependence on its coral reefs for tourism and fisheries underscores the need for urgent climate adaptation. Increased access to climate finance could fund coral reef restoration, coastal protection projects, and innovative solutions for sustainable tourism. Additionally, the agreement on carbon markets under Article 6 of the Paris Agreement opens up opportunities for the Maldives to attract investment through carbon credit trading, supporting conservation and low-carbon development.
Adaptation and Transparency
COP29 delivered key outcomes on adaptation, including the Baku Adaptation Road Map and support programmes for National Adaptation Plans (NAPs) in least-developed countries and small island developing states. For the Maldives, this will mean additional technical and financial support to implement its NAP, enhancing its ability to cope with the growing impacts of climate change.
The focus on transparency at COP29, with the submission of Biennial Transparency Reports (BTRs) by countries like the Maldives, will strengthen climate action accountability. Improved reporting frameworks will help identify funding needs and attract international support for high-priority projects.
While COP29 marked significant progress, UN Climate Change Executive Secretary Simon Stiell emphasised that much remains to be done, noting, “No country got everything they wanted.” The Maldives must continue advocating for faster disbursement of funds and streamlined processes to access the promised climate finance.
The road ahead, including COP30 in Belem, Brazil, will require sustained collaboration and innovation. The Maldives’ leadership in submitting transparency reports and integrating climate action into national strategies demonstrates its commitment to the global fight against climate change.
As stronger national climate plans become due next year, the Maldives must align its ambitions with the opportunities presented by COP29’s decisions. By leveraging increased climate finance and international support, the nation can fortify its defences against climate risks while contributing to global efforts to limit warming to 1.5°C.
