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Decoding COP29: Relevance for Indian Businesses & Key Takeaways
In recent years, the Conference of Parties (COP) has increasingly become densely complex & packed with a multitude of actions attempting to address the climate crisis. Over the course of two intense weeks, COP usually hosts hundreds of events, meetings, discussions and negotiations.
The negotiation agenda encompasses hundreds of items, addressing a wide array of issues. These discussions consider historical perspectives on global emissions, the impacts of climate change, scientific evidence, and geopolitical realities-such as the divide between developed and developing nations (or the Global North and Global South), with particular emphasis on the vulnerabilities of least-developed countries and small island nations. With 197 parties holding diverse positions and expectations, coordinating, tracking, and achieving consensus is a monumental challenge. This often leads to diluted outcomes or agreements based on the lowest common denominator to secure unanimous approval.
Other non-negotiation events focus on showcasing sectoral developments and solutions. While outside the formal process, they aim to amplify negotiated decisions. Their growing number raises questions about their impact, often creating more visibility than measurable outcomes.
However, given the complexity of the formal processes & procedures, any outcome-under the given circumstances—is to be considered a “good” outcome as it helps keep the multilateralism alive and functioning, albeit very slowly. COP29 outcomes should be viewed in this context.
COP29 outcomes
Much has been written about COP29, both the positive and not-so-positive outcomes. It will be up to the businesses to decipher those outcomes in their respective sectors and specific contexts. In general, a high-level perspective of the outcomes presents several key opportunities and challenges for Indian businesses:
- Carbon market opportunities:
COP29 finalised rules under Article 6 of the Paris Agreement, which should help Indian businesses participate in international carbon markets. This development aligns with India's push to establish its own carbon market through the Bureau of Energy Efficiency (BEE). Indian companies can leverage these mechanisms to sell carbon credits, invest in emission reduction projects, and attract foreign investments. - Climate finance access:
Although significantly insufficient, the agreement to increase climate finance to $300 billion annually by 2035, and recognising the needs are $1.3 trillion, signals new funding flows. Indian businesses in renewable energy, infrastructure, and sustainable agriculture could benefit from increased financial support for climate-resilient projects. - Adaptation and transparency:
Strengthened global commitments to adaptation and transparent reporting frameworks at COP29 (such as GHG Protocol) could encourage Indian businesses to enhance climate disclosures and adopt sustainable practices. - Sustainability and innovation:
The renewed focus on adaptation and decarbonisation offers Indian businesses the opportunity to innovate in clean technologies, enhance operational efficiency, and create climate-resilient supply chains. Innovation will be key in driving solutions towards green, clean, and resilient societies. - Technology transfer and capacity building:
Facilitating the transfer of climate technologies and building capacity to accelerate climate action as a national agenda, were also elaborately discussed. - Mitigation:
The discussions also emphasized the need to strengthen national climate action plans and accelerate the transition to clean energy, particularly through renewable sources, while ensuring energy efficiency.
Greenhouse Gas (GHG) Protocol
Although not a specific outome of COP29, the GHG Protocol offers internationally accepted standards for calculating emissions across Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (value chain emissions). By adopting these standards, Indian businesses can accurately measure their emissions, enhancing credibility with global stakeholders. The protocol supports regulatory compliance, access to carbon markets, risk management, enhancing competitiveness, driving cost savings, attracting investment, preparing for net zero commitments, reputation and stakeholder trust.
Conclusion
COPs are events that attract a lot of media attention and provide governments, parties, business and civil socities an important platform to negotiate, showcase, demand and highlight the importance of climate crisis and seek solutions. It is up to the businesses to use this platform and its outcomes to their advantage and more importantly to join and drive the transition to renewable and sustainable practices, products and businesses for the good of people, planet and prosperity.
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Mr. Ovais Sarmad
Vice-Chair GHG Protocol Steering Committee, Spain former Deputy Executive Secretary, UNFCCC
Owned by: Institute of Directors, India
Disclaimer: The opinions expressed in the articles/ stories are the personal opinions of the author. IOD/ Editor is not responsible for the accuracy, completeness, suitability, or validity of any information in those articles. The information, facts or opinions expressed in the articles/ speeches do not reflect the views of IOD/ Editor and IOD/ Editor does not assume any responsibility or liability for the same.
