How government and business leaders are preparing for COP29

Department of Energy official urges governments to set policies that encourage private investment in renewable energy and other climate-change-related projects

Key Takeaways

• Countries are meeting at COP 29, the 2024 United Nations Climate Change Conference, to consider how much to contribute to climate change mitigation efforts.
• American companies have a role to play, says Heather Evans, deputy assistant secretary for manufacturing at the International Trade Commission.
• Green finance also brings potential economic upsides.

Fifteen years ago, developed nations agreed to contribute $100 billion annually to help developing countries mitigate and adapt to climate change. They hit that number for the first time in 2022.

But United Nations leaders now argue $100 billion annually isn’t enough. At the upcoming COP 29 convening, which will be held in Baku, Azerbaijan, heads of state will consider increasing that number.

Representatives from the U.S.–Azerbaijan Chamber of Commerce, the International Trade Administration, the U.S. Department of Commerce, and the Johns Hopkins Science Diplomacy Hub recently gathered at the Hopkins Bloomberg Center to discuss the current “green finance” landscape.

“As we approach this landmark global climate conference, it’s crucial to recognize the growing importance of addressing the climate challenges ahead,” said Natig Bakhishov, executive director of the U.S.-Azerbaijan Chamber of Commerce. “This event is a unique opportunity to foster collaborations across the public, private, and scientific sector to drive forward sustainable and data driven solutions.”

Public and private efforts

The event focused on “green finance,” financial products and services that support environmentally friendly initiatives and projects. These can be traditional loans and bonds or investment incentives. 

Matthew Manning, a senior advisor at the Department of Energy, urged governments to set policies that encourage private investment in renewable energy and other climate-change-related projects.

“Government needs to be setting down the frameworks to make this possible for the private sectors to kind of take the ball and run with it,” he said.

Innovative financing mechanisms, such as public funding and guarantees, can de-risk investments and encourage private sector involvement in high-potential but uncertain areas, like renewable energy technologies. This approach not only attracts investment but also stimulates economic growth and job creation, aligning financial incentives with sustainability objectives, said Benjamin Todd, vice president of global business development at the Export-Import Bank of the United States.

Heather Evans, deputy assistant secretary for manufacturing at the International Trade Commission, echoed Manning’s statements and added that the Department of Commerce is “leveraging our industry and technical expertise to contribute in substance to the global crisis.”

“The fight against climate change will be won when we all join forces—that includes government, civil society, and the private sector,” she added.

Boon for business

Green finance also has the potential to be a big business for companies in the right sectors.

“We see the energy transition as the largest investment opportunity for this sector over the past 20 years,” said Ferris Hussein, managing director of global infrastructure and energy opportunities at Carlyle, a global investment firm.

But, Todd noted, challenges like permitting delays and the need for long-term investment strategies remain, so de-risking projects is crucial for attracting private capital. He added that collaborative efforts among governments, financial institutions, and private enterprises are crucial for reductions in greenhouse gas emissions and advancing climate goals.