The 29th Conference of the Parties (COP 29) is part of the annual series of climate change conferences organized by the United Nations Framework Convention on Climate Change (UNFCCC). The document was signed in 1992 by nearly 200 countries. The COP is the decision-making body of the treaty and representatives from these countries meet annually to negotiate the best approach to addressing the root causes of climate change. Indonesia is one of those present in the COP29 arena. Held in 2024 in Baku, Azerbaijan, the conference continues international efforts to curb climate change after previous meetings, such as COP21 that gave birth to the Paris Agreement and COP28 in Dubai that focused on energy transition and climate finance. COP29 served as a platform to set a new collective quantified goal for climate finance, replacing previous commitments of $100 billion per year that were often not met. With key themes such as sustainable energy transition, building a global carbon market, and increasing mitigation commitments, COP29 was also a platform for developing countries to push for climate justice and strengthen international cooperation in achieving carbon neutrality targets. The conference recorded the attendance of more than 40,000 delegates, including heads of state, scientists, and environmental activists, although some major economic leaders were absent.
The main purpose of COP29 is to discuss the new collective quantified goal, which is the new annual climate finance target. So far, developed countries are committed to providing US$100 billion (Rp 1,578 trillion) in financial assistance to developing countries. However, sometimes not all countries have fulfilled these promises since 2020, causing distrust among developing countries. Therefore, through COP29, delegates will look for new ways to increase funding apart from rich country aid, while setting much higher funding targets for the next few years. In addition to funding, the country delegates will discuss the issue of energy transition. This is because at last year's COP28 in Dubai, United Arab Emirates (UAE), it was agreed to switch from fossil fuels. In fact, until now, the use and sale, especially foreign exports of fossil fuels, are still massive. Through this conference, each country will also present solutions to deal with climate change.
Global climate change has demonstrated real and urgent impacts that need to be addressed through collective action such as at COP29. Rising global temperatures have triggered increasingly frequent and intense natural disasters, such as tropical storms, floods and droughts. A clear example is the severe flooding in Pakistan in 2022 that submerged a third of the country, affecting more than 33 million people. In addition, sea level rise due to melting ice in Greenland and Antarctica threatens the existence of small island states and densely populated coastal areas, such as Jakarta and the Maldives, which are in danger of sinking. Climate change also poses a serious threat to biodiversity, with thousands of species at risk of extinction due to shifting ecosystems and habitats. These phenomena demonstrate the importance of global action on climate mitigation, adaptation and finance, which is at the heart of discussions at COP29 to ensure the sustainability of ecosystems and the protection of the most vulnerable communities.
An estimated 40.000 to 50.000 delegates are expected to attend COP29 in Baku. The delegates include heads of state, diplomats, climate scientists, trade union leaders and environmental activists. Among them are British Prime Minister Sir Keir Starmer, Turkish President Tayyip Erdogan, and UN Secretary-General Antonio Guterres. Meanwhile, Indonesia itself was represented by Hashim S. Djojohadikusumo as the President's Special Envoy. In this meeting, there were several leaders of countries with the largest economies and carbon emitters who were not present for various reasons. Starting from US President Joe Biden, Chinese President Xi Jinping, and French President Emmanuel Macron. European Commission President Ursula von der Leyen, German Chancellor Olaf Schulz, and Indian Prime Minister Narendra Modi were also absent.
Indonesia will focus on 3 main things. The first is increasing contributions to nationally determined emission reductions (NDCs). Second, securing sustainable climate financing, and third is building resilience in areas vulnerable to climate change. Through this conference, Indonesia also presented its achievements in reducing greenhouse gas emissions. According to the Ministry of Environment's report, the presentation is important because so far Indonesia has shown an example in its ambition to reduce carbon emissions and has been recognized internationally as a super power in controlling climate change. Therefore, the Indonesian delegation will encourage and ensure that all countries carry out their obligations to control global climate change. On the other hand, Indonesia is also fighting for the issue of climate finance, especially related to the funding of 83 billion US dollars (Rp 1,2 quadrillion) that has been agreed at COP 28 in the United Arab Emirates in 2023. With this funding, Indonesia has the opportunity to utilize this fund to support renewable energy projects such as solar energy, wind, and biomass. In addition, the implementation of cutting-edge technologies such as Carbon Capture and Storage (CCS) is a priority to reduce emissions from fossil-based industries. The Indonesian government has also prepared strategic initiatives to increase renewable energy capacity, strengthen international collaboration in technology transfer, and focus on green investments in the forestry, marine and sustainable land management sectors. These steps will not only accelerate the achievement of national climate targets but also strengthen Indonesia's role as a key player in global climate action.
Indonesia, as a major greenhouse gas emitter that is also prone to climate change impacts, can utilize this forum to increase commitments in its Nationally Determined Contributions (NDC), access global funding such as the Green Climate Fund, and strengthen environmental governance, including stopping deforestation. Technology transfer support for the development of renewable energy such as wind, solar, and bioenergy can also help economic diversification as well as job creation in the green sector. However, challenges such as impacts on the coal industry need to be anticipated through firm national policies, active climate diplomacy, private sector engagement, and increased public awareness. With these measures, Indonesia can play a strategic role in ensuring environmental sustainability and global climate justice. In addition to direct impacts such as strengthening emission reduction commitments and access to global funding, COP 29 also has the potential to bring a number of interesting impacts for Indonesia, including:
Carbon Credit Export Potential: With increasing attention on global carbon trading mechanisms, Indonesia could utilize its vast tropical forests to offer carbon credits to international markets. This could potentially be a new source of revenue, especially if carbon governance and domestic regulations are strengthened.
Coal Industry Transformation through CCS Technology: COP 29 is likely to encourage the adoption of Carbon Capture and Storage (CCS) technology in the coal sector. If implemented, this technology could extend the transition period of Indonesia's coal sector while reducing its emissions impact, providing room for economic diversification.
Sustainable Tourism Opportunities: With growing pressure on environmental sustainability, Indonesia can utilize COP 29 to encourage sustainable tourism. Regions such as Bali, Raja Ampat, and National Parks can be held up as examples of eco-friendly destinations to attract tourists while supporting conservation.
Strengthening the Role of Green MSMEs: The outcome of COP 29 can motivate investment in the development of green-based Micro, Small, and Medium Enterprises (MSMEs), such as small-scale renewable energy production, recycling, and environmentally friendly products. This can create jobs while supporting national climate targets.
Changing Domestic Consumption Trends: With the increased awareness of sustainability driven by discussions at COP 29, Indonesians may prefer environmentally friendly products and services. This could encourage companies to adopt sustainability-based business models, accelerating the domestic market's transition to a green economy.
Strategic Position as a Bridge to Climate Diplomacy: As one of the largest developing countries and a member of the G20, Indonesia can play a unique role as a diplomatic bridge between developed and developing countries. This can strengthen Indonesia's position on the international stage as a leader in global climate action.
At COP29, major countries set different climate targets to support climate change mitigation. The European Union continues to lead with ambitious policies, such as the Fit for 55 package, which aims to reduce emissions by at least 55% by 2030 compared to 1990 levels. In addition, they are targeting carbon neutrality by 2050, reinforcing their commitment to a green energy transition. Japan plans to reduce greenhouse gas emissions by 46% by 2030 (compared to 2013) and is developing a long-term strategy to achieve net zero emissions by 2050, including increasing renewable energy use to more than 30% by 2030. African countries face a huge challenge despite contributing only a small fraction of global emissions. They are making an ambitious request of $1,3 trillion per year from 2025 for adaptation, mitigation and dealing with the impacts of climate change. This replaces a previous target of $100 billion per year that was deemed insufficient to address their needs. Initiatives such as the Great Green Wall are also in focus, although delays in funding and global commitments are an obstacle.
At COP29 in Baku, ASEAN demonstrated its growing leadership in the global carbon market. His Excellency Nik Nazmi bin Nik Ahmad, Malaysia's Minister of Natural Resources and Environmental Sustainability, opened the event with an ambitious keynote speech. He highlighted ASEAN's potential as a collective force, with a population of 670 million people and its position as an emerging economic power that is expected to rank fourth globally by 2030. Malaysia, which will take over the ASEAN Chairmanship next year, aims to formulate a unified strategy for carbon neutrality. The exchange of ceremonial memoranda at COP29 signaled this commitment, paving the way for accelerated low-carbon investment and deeper regional cooperation. At the heart of ASEAN's strategy is the ASEAN Common Carbon Framework (ACCF), designed to address unique challenges and capitalize on opportunities in the region's carbon market. By standardizing carbon methodologies and encouraging collaboration, the ACCF aims to lower costs, increase transparency, and improve market efficiency. Key initiatives under the ACCF include:
Mutual recognition of methodologies: Simplify project development in ASEAN countries.
Build regional talent: Develop a skilled workforce for validation and verification services.
Capacity building: Promote technical training and knowledge sharing.
The ACCF serves as a collaboration hub, connecting ASEAN carbon market associations to drive impactful projects and enhance market integration.
Five major carbon market associations from Malaysia, Indonesia, Singapore, Thailand and ASEAN formalized a historic partnership at the COP29 event in Baku, Azerbaijan, with the signing of a Memorandum of Cooperation (MoC) represented by the following key leaders:
Malaysian Carbon Market Association (MCMA), represented by Dr. Renard Siew
ASEAN Alliance of Carbon Markets (AACM), represented by Dharsono Hartono
Indonesia Carbon Trade Association (IDCTA), represented by Dr. Riza Suarga
Thailand Carbon Market Club (TCMC), represented by Gloyta Nathalang
Singapore Sustainable Finance Association (SSFA), represented by Kavitha Menon
The MoC exchange was conducted and witnessed by Malaysia's Minister of Natural Resources and Environmental Sustainability, His Excellency Nik Nazmi Bin Nik Ahmad, marking an important milestone in advancing regional cooperation on carbon markets.
The follow-up to COP29 will ensure real implementation at the global and regional levels through regional forums that discuss commitments, technical needs and financing, and promote decarbonization projects. The UNFCCC will also publish annual reports to monitor progress and measure countries' commitment to climate targets. Developed countries and international financial institutions are required to report climate finance contributions overseen by an ad hoc committee to ensure transparency. The ASEAN Carbon Common Framework (ACCF) will monitor projects and accelerate the integration of the regional carbon market. This approach is expected to be the cornerstone of more coordinated and sustainable climate action.
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