Will COP29 momentum drive stronger climate commitments for businesses?

The finance talks at COP29 may have fell short of expectations, but not all was doom and gloom in Baku. While climate finance negotiations largely stalled, a glimmer of hope emerged with forward-looking commitments from key players such as the UK and Brazil. 

Countries have pledged to fast-track updated Nationally Determined Contributions (NDCs) ahead of the 2025 deadline¹. As the foundation of the Paris Agreement, NDCs represent each nation’s climate pledge—a commitment to reducing emissions and keeping the 1.5°C goal within reach. Yet, as UN Secretary-General António Guterres warned at COP29, pledges alone are not enough. “We need an accountability revolution,” he urged, calling for concrete action from both governments and businesses.

The private sector played a crucial role in Baku, emphasising how NDCs shape industry decarbonisation strategies and the importance of strong public-private collaboration. Their main demand? Certainty. Business representatives called for clear, ambitious, and science-aligned commitments, including economy-wide emissions targets, sector-specific goals, and policies to halt deforestation. These are not just aspirational—they are essential for long-term planning, investment, and transitioning to net zero. Stable and consistent NDCs provide the policy predictability businesses need to develop transition plans, decarbonise operations, and drive sustainable innovation. Without this clarity, companies face uncertainty, making it harder to invest in clean energy, sustainable supply chains, and nature-based solutions.

As COP29 concludes, the challenge is turning ambition into action. Governments must integrate NDCs into national policies, ensuring climate targets lead to concrete regulations and sector-wide initiatives. Businesses, meanwhile, cannot afford to wait. They can reassess sustainability strategies, advocate for strong climate policies, and invest in resilience measures that align with expected regulatory shifts.

The question remains: will governments chart a path toward more ambitious, concrete NDCs, and how will these shape corporate decarbonisation strategies? The road ahead is uncertain, but there is no turning back.

1. https://unfccc.int/news/cop29-un-climate-conference-agrees-to-triple-finance-to-developing-
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