TSKB Economic Research Releases COP29 Evaluation Report

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TSKB Economic Research Releases COP29 Evaluation Report

Foreks - TSKB participated in the United Nations Climate Change Conference (COP29) held in Baku, Azerbaijan, from November 11 to 22, 2024, with Deputy General Manager and Sustainability Leader Meral Murathan, managers from various fields of expertise, relevant technical teams, and its subsidiary ESCARUS (TSKB Sustainability Consultancy Inc.). Annually, TSKB's Economic Research team shares evaluations of the COP, and this year published a report titled "There is a Picture but No Sound: Takeaways from COP29."

Guided by a vision of an inclusive sustainable future, TSKB (Industrial Development Bank of Turkey) continues to play an active role in important platforms addressing the global climate battle. The bank participated in the 29th Conference of the Parties (COP29) held in Baku, Azerbaijan, with Deputy General Manager and Sustainability Leader Meral Murathan, managers from various fields of expertise, relevant technical teams, and its subsidiary ESCARUS (TSKB Sustainability Consultancy Inc.). At COP29, TSKB contributed to nine different panels in the pavilions of Turkey, IDFC, UN Global Compact, Sustainable Future Platform, OPEC Fund, and World Bank, sharing Turkey's contributions and experiences in its sustainable development journey.

Following the summit, TSKB Economic Research compiled the notable highlights of COP29 in its report titled "There is a Picture but No Sound: Takeaways from COP29." The report discusses Turkey's Long-Term Climate Change Strategy announced in the early days of COP29, highlighting the targets set for achieving net zero by 2053 and the actions required to reach these targets.

The strategy encompasses targets and roadmaps related to renewable energy sources, nuclear energy, and decarbonization of sectors, emphasizing that the annual additional investment needed to achieve the goals is expressed as 1.7% of GDP. This average implies that by 2025, the private sector is expected to invest an additional $14 billion, while the public sector is expected to invest approximately $10 billion.

The report states that one of the most significant outcomes of COP29 was the acceptance of Article 6 of the Paris Agreement, which allows for the generation and trading of carbon credits from emission reduction projects and aims to establish a carbon market under UN supervision, with the mechanism planned to be operational by 2025.

Other notable highlights in TSKB Economic Research's report "There is a Picture but No Sound: Takeaways from COP29" include:

  • The $300 billion target emerged in Baku, featuring the New Collective Quantified Goal (NCQG) aimed at supporting climate actions in developing countries post-2025, which fell short of expectations.
  • The G77 group's perspective, including China, indicated a need for $1.3 trillion in climate financing, comprising $600 billion in grants from public resources in developed countries.
  • Ecosystem discussions and nature-positive approaches were addressed in many sessions throughout the summit. It is anticipated that these topics will gain more emphasis at COP30, which will be held in Belem, dubbed as the gateway to Brazil's rainforests and the Amazon River.
  • The Bonn Climate Conference, taking place in June 2025, will have a preparatory role for COP30 with technical negotiations. The course of discussions at the conference, as well as the progress indicated by updated contribution statements published by countries throughout the year, will significantly influence the tone of the event in Belem next year.