What happened at COP29? Insights for sustainability leadership

Instead, it revealed a widening gap between rhetoric and action, leaving businesses and governments with significant questions about the future of climate policy.

However, it was not all gray skies. We sat down with Nick Nuttall, former UNFCCC Communications Director, who attended the COP29 conference personally, to hear his key takeaways from the summit that can help inform your ongoing strategies for sustainable impact.

The financial divide deepens

Developing nations came to Baku with high expectations for financial support, essential for implementing their climate action plans. The $300 billion pledged annually is a fraction of the $1 trillion experts estimate is needed. According to Nuttall, the delay in delivering sufficient funding has tangible consequences: “By 2025, there will only be four years left to halve emissions. Delays like this cost us the flexibility to act.”

While the commitment fell short, it signaled an acknowledgment of the issue—albeit insufficient. The outcomes set the stage for renewed debates at COP30 in Brazil, where funding will likely take center stage once again.

Carbon markets finally gain clarity

One of the few breakthroughs at COP29 was the agreement on carbon market rules after nearly a decade of negotiations. This long-awaited framework provides much-needed structure to how carbon markets can function globally, potentially unlocking their wider use by businesses.

“With the rules now in place, we might see more companies using carbon markets to offset emissions,” Nuttall observed. However, questions remain about how effectively these markets can drive meaningful emissions reductions versus serving as a compliance tool. processes that align with organizational goals.

“By 2025, there will only be four years left to halve emissions.”

Nick Nuttall, Former Director of Communications, UNFCCC

Methane: The hidden challenge exposed

COP29 also brought methane into sharper focus. Long overshadowed by carbon dioxide, methane is significantly more potent as a greenhouse gas but has historically been underreported. Advances in satellite technology, particularly MethaneSAT, have unveiled the true scale of emissions.

“It’s clear that most methane emissions were underreported,” Nuttall said. “With satellites now able to pinpoint emissions down to 25 meters, there’s nowhere to hide anymore.”

This revelation could lead to regulatory shifts in key sectors such as oil and gas, agriculture, and waste management, forcing businesses to reconsider how they monitor and report methane emissions.

However, it also represents a potential opportunity on the horizon, as gases like methane have 80  times greater global warming potential than carbon dioxide, yet last in the atmosphere for a significantly shorter period of time, by some estimates just 12 years. If emission reduction efforts incorporate methane more tangibly, it could lay the groundwork for more deft climate action in the near term.

The fossil fuel debate remains unresolved

COP29 revealed deep divisions over the global approach to fossil fuels. While some nations and progressive businesses pushed for stronger commitments to phase out fossil fuels, resistance from entrenched industry interests diluted the language of agreements.

“We’ve seen the fossil fuel industry reassert itself in these discussions,” Nuttall noted. “The language around fossil fuels remained a sticking point, showing how far we still have to go.”

The persistence of these debates highlights the challenges of balancing economic and environmental priorities, particularly in regions heavily reliant on fossil fuel industries.

Reporting and accountability gain traction

Corporate reporting frameworks, particularly in Europe, were indirectly bolstered by discussions at COP29. Initiatives like the EU’s Corporate Sustainability Reporting Directive (CSRD) and emerging global reporting standards align with the growing demand for accountability at all levels.

“What happens at COP gets filtered into national legislation and corporate reporting frameworks,” Nuttall explained. With carbon markets gaining clarity and methane reporting under scrutiny, businesses can expect increased regulatory demands on emissions transparency.

Other corporate leaders have expressed this sentiment, too, as Unilever did ahead of COP29, stating that their Climate Transition Action Plan’s (CTAP) success is predicated upon regulations that can level the business-sustainability playing field and help scale adoption of solutions.

What’s on the horizon at COP30?

COP30 in Brazil is already generating anticipation as a potential turning point for climate action. Under the leadership of President Lula, discussions are expected to focus on deforestation, agriculture, and scaling financial support to developing nations.

Nuttall predicted a shift in approach: “Given how close we are to breaching the 1.5°C threshold, annual stocktakes and accountability mechanisms may be necessary.”

The COP29 legacy

While COP29 fell short of delivering on its promise as the “finance COP,” it laid the groundwork for critical conversations on finance, accountability, and methane emissions. For sustainability leaders, it reinforced the importance of staying ahead of regulatory trends and aligning corporate strategies with evolving climate priorities.

“The clock is ticking,” Nuttall emphasized. “Delays now will make achieving our goals harder in the years ahead.”

COP29 may not have been the breakthrough moment many hoped for, but it clarified the stakes—and the work that lies ahead. As the countdown to COP30 begins, the global spotlight remains fixed on how businesses, governments, and civil society can close the gap between ambition and action.