From Monday, 11 November to Friday, 21 November 2024, global leaders in government, business and civil society convened in Baku, Azerbaijan for the 2024 United Nations Climate Change Conference (COP29). The international forum’s critical discussions centred on climate finance, adaptation strategies, the acceleration of low-carbon energy technologies and more. For American companies invested in Europe, the conference is key to fostering a successful green transition around the world. 

Why COP29 matters 

The complex negotiations at this year's COP29 underscored the challenges within the international community of achieving consensus on addressing climate change. Convened against the stark reality of accelerating climate impacts and with 2024 on track to be the hottest year in recorded history, the summit emphasised the urgency of limiting global warming – a pivotal test of the Paris Agreement's success. As an international forum, COP29 has the potential to foster partnerships to share knowledge, align strategies and work collectively to reduce emissions, create jobs, develop clean energy sources, invent energy-efficient technologies and invest in circular resources, all in a cost-effective manner. 

The cost of transition 

The transition to achieving net-zero emissions will require trillions of dollars in investment to build new infrastructure, deploy innovative technologies and fund critical research and development. This funding must come from significant increases in both public and private investments. Simplified access to funding tools is essential to accelerate progress and support decarbonising industries, as is ensuring access to grants and preferential financing for viable, technologically neutral projects and breakthrough innovations that reduce greenhouse gas emissions. This clear and accessible funding, combined with a streamlined regulatory environment, is necessary for businesses to confidently invest in decarbonisation efforts. 

US companies’ role 

American companies are major investors in Europe and support the continent's ambitious climate goals through the development of innovative, low-carbon technologies, promoting green finance and minimising their environmental footprints. Many are using hydrogen to decarbonise hard-to-abate sectors, investing in a more sustainable aviation industry, pioneering water resilience initiatives and contributing to green projects across Europe. Their efforts must be supplemented by stronger collective action. No single company, sector or nation can singlehandedly transition to a low-carbon economy or achieve net neutrality, highlighting the urgent need for global collaboration to meet the Paris Agreement’s goals. Only through continued dialogue between international leaders and businesses of all sizes can the world transition to a low-carbon economy and address the climate crisis. 

COP29’s outcomes 

Many COP29 discussions focused on creating the consistent regulatory environments that support innovation and help scale green solutions. Harmonisation at both the EU and international levels can minimise fragmentation and provide stability so businesses can meet ambitious climate targets. Furthermore, by building on agreements like the COP28 Declaration of Intent on mutual recognition of certification schemes, COP29 can facilitate American companies’ investments in sustainable technologies and reducing emissions in Europe. US businesses are encouraged by the cooperation on display at COP29 and by the potential for stronger global partnerships, clearer regulatory pathways and expanded opportunities to contribute to the green transition while fostering resilient and sustainable economies.