COP29 and CBAM: Shaping the Future of Climate Action

The 29th UN Climate Conference (COP29) is currently taking place in Baku, Azerbaijan, from November 11 to 22, 2024. This central platform for international climate policy brings together representatives from nearly 200 countries to assess the progress of the Paris Agreement and discuss financial strategies to strengthen global climate action. But what exactly are the “COP” conferences, and why is CBAM such a critical part of the solution?

The UNFCCC – The Foundation of International Climate Policy

The roots of international climate negotiations trace back to the United Nations Framework Convention on Climate Change (UNFCCC), signed in 1992 by 154 nations in Rio de Janeiro. The convention’s goal is to limit the rise in greenhouse gas emissions and protect humanity from the devastating effects of climate change. To date, 197 countries, along with the European Union, have ratified the agreement. A central principle of the UNFCCC is the concept of “common but differentiated responsibilities and respective capabilities.” This principle acknowledges that nations bear varying levels of responsibility for climate change and have different capacities to address it. Industrialized countries, which have historically contributed the most to global emissions, are therefore more obligated to take action.

COP – A Stage for Climate Action

The Conference of Parties (COP), the meeting of signatory nations, has been held annually since 1995. These conferences serve as a platform to discuss concrete climate action measures and formulate ambitious goals. Major milestones, such as the Kyoto Protocol and the Paris Agreement, were born out of these gatherings.

The Kyoto Protocol (1997)

The Kyoto Protocol was the first legally binding agreement that required industrialized nations to reduce emissions. It aimed to cut greenhouse gas emissions by an average of 5% by 2012 compared to 1990 levels. However, not all major emitters joined the protocol: the United States rejected it due to the exclusion of developing countries from binding obligations. Canada later withdrew, acknowledging it would not meet its targets.

The Paris Agreement (2015)

Adopted at COP21, the Paris Agreement is a historic milestone, achieving near-universal participation with almost 200 signatories. It set the ambitious goal of limiting global warming to 2°C, with efforts to cap it at 1.5°C. The success of the agreement lies in its voluntary approach: each country sets its own nationally determined contributions (NDCs) for emission reductions. These targets are reviewed and strengthened every five years.

CBAM – A New Approach to Effective Climate Policy

Despite the progress under the Paris Agreement, it soon became clear that voluntary commitments alone were insufficient to meet global climate goals. In response, the EU introduced the CBAM in 2023—a paradigm shift in international climate policy. Unlike the agreement's voluntary commitments, the European Commission’s CBAM uses a “top-down” approach. This mechanism imposes carbon costs on imports from countries with less stringent climate policies. Critics argue that CBAM forces other nations to adopt EU climate standards, thereby violating the consensus-based spirit of the Paris Agreement. However, studies show that CBAM contributes to global emission reductions by preventing “carbon leakage,” the relocation of carbon-intensive production to countries with weaker climate regulations. CBAM ensures that the EU meets its ambitious climate goals without compromising its competitiveness in global trade.

Support for Decarbonization

Do you need assistance in complying with new regulatory requirements, optimizing CO₂ costs in international trade, or decarbonizing your supply chain? Feel free to reach out to us anytime at helge@kolum.earth — together, we can pave the way to a more sustainable future! Best regards, Helge Wieggrefe