By Mateusz Siara, sustainability department manager, Bilfinger
The role of the Conference of the Parties (COP) in advancing the sustainability agenda has consistently faced challenges. Despite supporting a noble cause, it has been criticised for its effectiveness and transparency. With climate change becoming increasingly evident in our daily lives, the controversies surrounding COP29 in Baku, Azerbaijan (11-22 November) are no exception. This year’s conference has brought together leaders, policymakers, and activists from around the world to discuss and negotiate the future of our planet’s climate policies, yet whether it will deliver expected outcomes remains uncertain.
Sustainability in the industrial sector
Industrial activities, including manufacturing, energy production, and construction, represent a significant portion of global greenhouse gas emissions. These sectors are integral to the global economy, yet they are also significant contributors to environmental degradation. While some sectors have made significant progress in reducing emissions and improving efficiency, many still rely heavily on fossil fuels and inefficient processes, significantly contributing to climate change. High capital costs for new technologies and a complex regulatory landscape hinder progress toward a low-carbon economy. Despite recent efforts, studies suggest that without accelerated progress, global net-zero ambitions will not be met. The industrial sector faces unique challenges, such as the need for substantial investment in new technologies and the overhaul of existing infrastructure.
COP29: key outcomes for industry
COP29 has been dubbed the “finance” COP, as this year’s meeting emphasised the importance of funding climate change adaptation strategies, particularly in less-developed economies. The conference produced several key initiatives aimed at fostering sustainability in the industrial sector:
- Climate Finance Action Fund (CFAF): The initiative aims to mobilize financing for developing countries to implement climate adaptation strategies. Although the CFAF has not yet been officially launched at the time of writing, the need for more ambitious and transparent financing is obvious.
- Global Energy Storage and Grid: This initiative focuses on enhancing global energy storage capacity and improving grid infrastructure. By 2030, the goal is to deploy 1,500 GW of energy storage worldwide
- Green Energy Zones: COP29 introduced commitments to establish green energy zones and corridors to connect sources of green energy generation with regions most in need
- Hydrogen Action Declaration: This initiative aims to scale up the production of low or zero-emission hydrogen. Hydrogen is seen as a key component in the transition to a low-carbon economy
- Collaboration Frameworks: COP29 emphasized collaboration between governments, businesses, and civil society to address climate challenges effectively
The hydrogen economy
The Hydrogen Declaration presents a view of hydrogen as a clean energy source capable of decarbonising hard-to-abate sectors like steel production and heavy transportation. However, hydrogen production remains costly compared to conventional methods. Infrastructure development is still in its infancy, and widespread adoption will take time. The hydrogen economy holds great promise, but significant challenges must be overcome to realise its full potential. These include reducing production costs, developing efficient storage and distribution systems, and creating a supportive regulatory environment.
Financial mechanisms
COP29 highlighted the awareness that accessible and transparent financing mechanisms are crucial in driving sustainability efforts. The role of CFAF aims to catalyse investments in renewable projects; however, questions about its effectiveness remain valid. Ensuring that these financial mechanisms are transparent, appropriately distributed, and aligned with sustainability goals is essential for their success.
Future outlook
The outcomes of COP29 suggest a shift toward greater accountability within industries regarding sustainability. However, whether this accountability will translate into real action remains to be seen. International cooperation is crucial for achieving net-zero targets; however, interests from particular parties may still hinder progress. The path to net-zero emissions is paved with challenges but also presents opportunities for economic growth and innovation. As such, the success of COP29 depends on collective efforts from public sectors, businesses, and individuals to drive meaningful change.
References
- UN Climate Change Conference. Summary of Key Initiatives from COP29. Available: https://unfccc.int/cop29
- https://cop29.az/en/presidency/initiatives-for-cop29
- https://cop29.az/en/media-hub/news/energy-and-peace-are-the-focus-at-cop29-day-five-energypeace-relief-and-recovery-day
- https://hydrogeneurope.eu/hydrogen-europe-joins-cop29-hydrogen-declaration-on-energy-day/
- https://unfccc.int/cop29
