COP29 concluded with the Baku Finance Goal agreement. (Image source: UNFCCC)

There has been a mixed response to the outcome of COP29 and the Baku Finance Goal (BFG) that was announced in the final hour

There was plenty of drama in the conclusion of the 29^th edition of the United Nations Climate Change Conference, held in Baku, as international stakeholders representing 200 countries vied to hammer out a deal that would continue the energy transition and support developing countries in their battle against climate change.

The conference opened under headlines dominated by Ilham Aliyev, the President of country host Azerbaijan, who described oil and gas as a “gift from God” and criticised misinformation spread by western media, charities and politicians. From this point, persistent protests from climate demonstrators and campaigners set the background clamour for the event as it ran through the agenda, as the spotlight began to focus the eventual deal that would mark its success, or otherwise.

As the debate began in earnest, the temperature began to rise and at one point in the proceedings it appeared as though a deal might not be reached following the breakdown of discussions and dozens of nations walking out.

However, this tumultuous finale, delegates returned to the room and a period of intense diplomacy saw a new deal struck in the dying hours of the conference

Over the line in Baku

The culmination of the debate was announced in the form of the BFG.

This represents a commitment to channel US$1.3 trillion of climate finance to the developing world each year. At its core is a target for developed countries to take the lead on mobilising at least US$300bn per year for developing countries by 2035.

In addition, there was a conclusion for the Article 6 negotiation on high integrity carbon markets under the UN. According to the COP29 announcement, financial flows from complaint carbon markets could reach US$1 trillion per year by 2050 and have the potential to reduce the cost of implementing national climate plans by US$250bn per year.

“We have unlocked one of the most complex and technical challenges in climate diplomacy,” said COP29 lead negotiator Yalchin Rafiyev. “Article 6 is hard to understand, but its impacts will be clear in our everyday lives. It means coal plants decommissioned, wind farms built and forests planted. It means a new wave of investment in the developing world.”

In addition, the full operationalisation of the Loss and Damage Fund was unveiled after originally being agreed during COP27 in Egypt. The fund aims to provide financial assistance to countries most vulnerable to the impacts of climate change, with the decision to launch operations made agreed during COP28.

COP29 went further by ensuring the fund’s operationalisation, including several important related agreements including the Trustee Agreement and the Secretariat Hosting Agreement. To date, the total pledged financial support for the fund exceeds US$730mn.

The best outcome or an “optical illusion”?

“When the world came to Baku, people doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts,” remarked COP29 President, Mukhtar Babayev. “With this breakthrough, the Baku Finance Goal will turn billions into trillions over the next decade. We have secured a trebling of the core climate finance target for developing countries each year.

“The Baku Finance Goal represents the best possible deal we could reach, and we have pushed the donor countries as far as possible. We have forever changed the global financial architecture and taken a significant step towards delivering the means to deliver a pathway to 1.5°C. The years ahead will not be easy. The science shows that the challenges will only grow. Our ability to work together will be tested. The Baku Breakthrough will help us weather the coming storms.”

This positive judgement is not one universally shared however, with critics suggesting that developed countries were not meeting their responsibilities to raise resources to support developing nations. Indian negotiator, Chandni Raina was one of the leading voices in dissent, labelling it “an optical illusion” that “will not address the enormity of the challenge we all face.”

Ali Mohamed, Kenya’s special envoy for climate change and chair of the African group of negotiators, also expressed his disappointment. “Africa leaves Baku with realism and resignation as COP29 progress falls far short of our hopes,” he stated in a post on X. “When Africa loses, the world loses – its minerals, biodiversity & stability. The US$300bn/year by 2035 is too little, too late for a continent facing climate devastation while contributing leads to emissions.”

While the debate continues for the time being over the effectiveness of the new deal, eyes are already looking ahead to COP30 which will be hosted in Brazil from 10-21 November 2025. Certainly, these proceedings will be heavily coloured by a new leader amongst the developed countries in the form of US President Donald Trump. Having recently nominated a fracking CEO to lead the US Energy Department, there are fears the President will step back from the country’s climate commitments.

Time, then, will tell whether the critics of the BFG are proven correct or whether the agreement will hold together the climate effort in the potentially subdued conferences that could lie ahead.

Moteurs Baudouin, a global leader in advanced power solutions, has announced its role as a Silver Sponsor at Touchdown Middle East, an industry-leading event organised by the Gulf Data Center Association (GDCA).

Held in Bahrain, the event highlights Baudouin's dedication to supporting the Middle East's rapidly growing data centre sector.

"At Moteurs Baudouin, we are driven by a singular vision: to be recognised as a global leader in innovative power solutions," said Enrique Moraga, director of business development for critical applications at Baudouin.

Building on its strong partnership with the Gulf Data Centre Association (GDCA), Baudouin will showcase its expertise in power generation for critical applications during the event.

With over a century of experience in delivering dependable power solutions, Baudouin is well-positioned to support the Middle East's expanding digital infrastructure.

The event also marks the launch of Baudouin’s groundbreaking 20M55 generator set, offering an unprecedented 5250 kVA—the highest power rating currently available for data centre backup solutions.

"Our latest 20M55 generator set, delivering an industry-leading 5250 kVA, redefines reliability and efficiency, meeting the growing demands of modern data centres," director of business development for critical applications at Baudouin.

Touchdown Middle East is set to be a key gathering for the region’s data center industry.

Li-ion battery energy storage systems (BESS) remain the global market leader, with 92.3 GWh deployed in 2023 across grid-scale, commercial, and residential applications, according to a recent IDTechEx report.

The widespread adoption of Li-ion BESS has been driven by significant cost reductions and continued technological advancements that enhance safety and energy density. These characteristics make Li-ion batteries a preferred choice for customers prioritising efficiency, durability, and cost-effectiveness in energy storage solutions.

Emerging technologies, including CATL's "zero-degradation" TENER system, have captured industry attention. The TENER system reportedly maintains zero degradation for five years, a claim achieved through biomimetic SEI, self-assembly electrolytes, and pre-lithiation additives.

These innovations are part of a broader industry trend to optimise system-level energy density and reduce lifecycle costs, enabling Li-ion technology to maintain its dominance in the energy storage market.

IDTechEx forecasts the Li-ion BESS market to reach US$109bn by 2035. A notable shift in Li-ion technology is the increasing adoption of lithium iron phosphate (LFP) chemistry, which offers cost advantages, longer cycle life, and a lower risk of thermal runaway compared to nickel manganese cobalt (NMC) chemistry. LFP's affordability and stability have positioned it as the dominant choice for stationary energy storage applications.

While LFP cells generally have lower energy density than NMC cells, advancements in larger cell form factors and system design have improved energy efficiency.

These enhancements enable manufacturers to allocate more container volume to active cells rather than components like thermal management systems, saving space and reducing installation costs.

Notable examples include Narada Power’s 5.11 MWh system, featuring a cell-level energy density of 390 Wh/L, and CATL’s 6.25 MWh TENER container, offering 430 Wh/L and a ~25% increase in system-level energy density over previous models.

These developments are crucial for high-capacity projects in spatially constrained locations. Despite its challenges, such as supply chain complexities and cost fluctuations, Li-ion technology remains critical to global energy transition efforts. Its proven reliability and scalability for grid-scale projects ensure its continued prominence. Furthermore, as the demand for sustainable energy solutions grows, ongoing innovations in Li-ion BESS will help meet stringent market requirements.

The majority of signatories are pursuing investments in new energies. (Image source: Adobe Stock)

The majority of signatories to the Oil & Gas Decarbonization Charter (OGDC) are on track to meet its goals, according to a progress report

The Oil & Gas Decarbonization Charter (OGDC) is one of the landmark initiatives launched at COP28, with objectives including net zero operations by 2050, and reduction of methane emissions to near zero and the elimination of flaring by 2030. 54 oil and gas companies - representing almost 45% of global oil production, have signed up to the Charter.

In the past 12 months, OGDC has established a governance framework and launched a survey to determine signatories’ emissions reduction ambitions and implementation plans to set a baseline to track future progress.

OGDC has also implemented a Collaborate & Share program to disseminate solutions, promote peer-to-peer collaboration and encourage the adoption of best practices to reduce emissions. The initiative has also attracted three new members, with Oil India Limited, PetroChina and Vår Energi joining.

“We are proud of the 54 companies that have already signed up to the Charter and are encouraged by the extent of their engagement in this first major piece of work that helps to establish a base on which to build future success,” said OGDC’s three CEO Champions and founding members – Abu Dhabi National Oil Company (ADNOC) CEO Sultan Al Jaber, Aramco CEO Amin Nasser and TotalEnergies chairman and CEO Patrick Pouyanné, in a joint statement.

Investing in future energies

According to the survey, most of the signatories are already investing in future energies, including renewable energy, energy storage, low-carbon fuels, hydrogen, methane abatement, carbon capture utilisation and storage (CCUS) and carbon removals technologies, and plan to increase investments.

Bjorn Otto Sverdrup, the head of the OGDC Secretariat said: “A survey of oil and gas industry climate performance has never been attempted on this scale. Participants ranged from companies that pioneered decarbonisation decades ago to those still in the early phases – all with different capabilities and reporting methods. The lessons learned will be used to improve reporting visibility and data quality and to create more targeted programs.”

Over the next year, OGDC will focus on providing the resources and guidance the signatories need to reduce their GHG emissions, methane emissions and flaring. OGDC will also help signatories to shape their net-zero roadmaps and develop emissions reporting to ensure progress can be tracked and to demonstrate how collective action can deliver positive climate impact on a global scale.