Key talking points from COP29 – UN Climate Change Conference Baku – November 2024

The UN’s climate conference in Baku, Azerbaijan has now come to a close but what are we to make of what it has – and has not – delivered.

COP29 had been dubbed the “finance COP” thanks to its focus on securing funding for low-income countries to transition to low-carbon economies. Such ambitions, following years of preparatory work, proved too high and many developing countries left disappointed with the agreement achieved.

Two weeks of intense negotiation followed by a long weekend of last-minute back and forth resulted in what is officially called the New Collective Quantified Goal on Climate Finance (NCQG).

NCQG promised to provide a flow of $300 billion in climate finance from developed countries to developing countries every year by 2035.

However, developing countries were disappointed that the $1.3 trillion they had been pushing for ahead of COP29 was not achieved. Speaking to Reuters, Indian delegation representative Chandni Raina told the summit, “This, in our opinion, will not address the enormity of the challenge we all face.”

Simon Stiell, Executive Secretary of UN Climate Change, said, “This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country.  But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives.”

While the level of funding disappointed many, it will help developing countries invest in measures that have already been tested and proven elsewhere. India, which expressed disappointment at the funding, is already investing heavily in rolling out smart meters.

At Procode, we have already demonstrated how smart meters can help educate consumers and help suppliers manage demand better in pursuit of net zero ambitions. Our team has the expertise and experience to help other countries do the same.

One of the early announcements from COP29 was that the conference had reached agreements, following years of stalemate, on establishing a global carbon market under the United Nations.

“When operational, these carbon markets will help countries implement their climate plans faster and cheaper, driving down emissions,” said Stiell.

At Procode, we believe that standardised carbon pricing and the accurate monitoring of emissions and carbon offsets are vital in building trust in the system and in properly accounting for emissions in a way that allows businesses and individuals to really get to grips with their impact and make long-term decisions based on them.

COP29 also saw the launch of the Energy Efficiency for SMEs initiative by the European Investment Bank Group, the European Commission and the Solar Impulse Foundation. They have joined forces to help small and mid-sized companies in their decarbonisation efforts.

Ambroise Fayolle, EIB Vice President in charge of climate action, said, “SMEs generate about 60% of Europe’s emissions, and unless we help them to become more efficient, it will be impossible to achieve EU climate goals. “

One focus of the initiative is the establishment of an “as-a-service” model in which companies pivot from selling products to selling outcomes. Rather than buying energy efficient heating or lighting equipment, SMEs pay for the warmth or light they need, while the provider of these services retains ownership of the equipment.

The initiative will be one to watch and is aligned with our own embrace of the “as a service” model.

At Procode, we know that the cost of technology has sometimes been exorbitant in the past and that businesses looking for flexibility and scalability when things go well like the low entry costs of the cloud-based technology offered by Procode and that embracing software-as-a-service allows companies to be faster to market and quicker to innovate.

Encouragingly, the COP29 conference recognised the role of technology in the energy transition and held its first ever Digitalisation Day on 16 November.

Launching the day, COP29 President Mukhtar Babayev said, “The first-ever Digitalisation Day at COP29 marks a new chapter in climate action, embedding digital technology as a transformative tool.”

On the day, the conference launched the COP29 Declaration on Green Digital Action.

“We have a unique opportunity to combat the climate crisis while urging the digital industry to take responsibility for its environmental footprint. From artificial intelligence in climate modelling to optimising renewable energy systems, digital advancements are key to accelerating sustainable solutions on a global scale,” said Babayev.

Key objectives of this initiative will be

• Encouraging the development and adoption of sustainable digital technologies to accelerate greenhouse gas emissions abatement, reductions, and removal and energy efficiency across sectors. Procode has been at the heart of the smart rollout in the UK and we know how vital digital technology is in reducing emissions.
• Promoting the accessibility of digital technologies for climate action to developing countries. Procode’s technology is not just for the UK, where we have many happy customers. Our experienced teams can help operators and suppliers in developing countries leverage or expertise.
• Implementing effective systems to accurately track and standardise climate-related data and energy usage and effectively monitor regulatory adherence and data quality and integrity. Data quality and integrity is important to Procode and we regularly keep up to date with the latest industry standards.
• Mobilising existing climate funds and invest across all channels in innovation, research and development and implementation of environmentally sustainable digital technologies and resilient infrastructure. Retrofitting existing housing stock will be vital in the energy transition and this is something we wholeheartedly support at Procode. Our acquisition of Ecofit in spring 2024 underlines our commitment. Ecofit, what we call the “property performance snapshot” allows householders in the UK to discover which free or subsidised energy measures, such as a boiler upgrade or loft insulation, are available to them more easily.

At COP29, the Utilities for Net Zero Alliance (UNEZA) – a global community of 45 utilities and power sector suppliers – announced a pledge to increase power system storage capacity six-fold by 2030 and add or refurbish 80 million kilometres of grids by 2040 and a commitment to more than $50 billion investment in grid infrastructure.

Smart technology will play an increasingly important role in delivering on COP29’s pledges and promises.

Smart technology like Procode’s will enable energy consumers, both businesses and householders, as well as suppliers to contribute to improved utilisation of the power grid.

Technology such as meters and real-time access to the information they provide means the UK and other countries can optimise the use of the existing grid and increase capacity without having to build more infrastructure.

COP29 is at times controversial and there is much frustration about whether it can help deliver the rapid change required. However, the announcements from COP29 show there is willingness from many countries, organisations and businesses to embrace change, especially technology-driven change. Procode is proud to be part of that transition.

Getting all of this right is important.