At COP29, critical climate finance discussions gained traction alongside groundbreaking initiatives. Denmark introduced a pioneering emissions levy on livestock, aiming to cut methane while promoting biodiversity and restoring peatlands.
The UK and US forged a landmark agreement to accelerate advanced nuclear technologies, targeting decarbonisation in heavy industries. Efforts to phase out fossil fuel subsidies expanded, though transparency remains an issue, with only four countries meeting inventory commitments.
Alarmingly, public climate finance for food systems has dropped to just 2.5%, highlighting a systemic funding gap. With such progress and challenges, will these steps truly reshape global climate action?
Denmark Introduces World’s First Livestock Emissions Tax
- Denmark will implement the first-ever tax on agricultural emissions, targeting methane emissions from livestock, starting at 300 kroner ($43) per tonne in 2030, rising to 750 kroner by 2035.
- The Green Tripartite agreement includes efforts to restore 250,000 hectares of forest and 140,000 hectares of peatlands, reducing nitrogen pollution by 13,780 tonnes annually from 2027.
- Beyond emissions, the initiative prioritises improving biodiversity and restoring critical ecosystems like peatlands, known for their carbon storage capacity.
“Things that we could all benefit from if the rest of the world could foster such cooperation in the climate fight. ” – Danish minister for climate, energy and utilities, Lars Aagaard
UK and US Partner to Accelerate Advanced Nuclear Technologies
- The UK and US signed a civil nuclear collaboration agreement at COP29 to accelerate the deployment of advanced nuclear technologies, strengthening energy security and decarbonising industries.
- The alliance will combine billions in research and development (R&D), leveraging academic institutions and nuclear innovators, with a goal of industrial deployment by 2030.
- Technologies like advanced modular reactors (AMRs) will provide low-carbon heat and power for heavy industries such as aviation fuel, hydrogen production, and advanced steelmaking.
- This initiative supports the COP28 commitment to triple global nuclear energy capacity by 2050, aligning with ongoing UK projects like Sizewell C and the Great British Nuclear’s modular reactor competition.
Global Alliance to Phase Out Fossil Fuel Subsidies Grow
- The UK, Colombia, and New Zealand joined a coalition dedicated to phasing out fossil fuel subsidies, now comprising 16 nations, primarily European, with more countries in private talks to join.
- Governments spent a record $1.5 trillion on fossil fuel subsidies in 2022, driven by the energy crisis, with spending expected to drop as energy prices stabilise.
- The coalition aims to tackle barriers like international agreements that restrict taxing aviation and shipping fuels, which tie up half of all subsidies.
- Only four of the original 13 members (Netherlands, Belgium, France, and Ireland) published their subsidy inventories on time; others, including developing nations like Costa Rica and Antigua and Barbuda, are still finalising theirs.
Urgent Call to Scale Up Climate Finance for Food Systems
- From 2017 to 2022, the share of public climate finance allocated to food systems dropped from 3% to 2.5%, with sustainable food systems receiving only 1.5%.
- Current annual public climate finance for food systems ($16.3 billion) is far below the $500 billion required to transition to sustainable food systems globally.
- Critical Climate Impact: Food systems contribute one- third of global greenhouse gas emissions and 15% of fossil fuel use.
Additional Climate Finance Commitments
- Triodos Bank, pledge €500 million by 2030 to fund ecosystem restoration and resilience.
- EU’s Ambitious Climate Finance Target: Proposing $200-$300 billion annually to support developing nations, showcasing strong public sector leadership in climate equity.
- US Commitment to Clean Energy: $325 million pledged to the Climate Investment Funds, driving renewable energy adoption through public-private collaboration.
- Australia’s Loss and Damage Fund Contribution: $32.5 million allocated to aid vulnerable communities impacted by climate change, highlighting a focus on global climate justice.
- A Growing Trend Beyond Governments: These actions exemplify how both private and public sectors are taking proactive steps, reflecting a shift toward collaborative global climate action.
