ADVERTISEMENT

Investing

After a Year of Hard Climate Talks, ‘Minilateralism’ Is an Alternative

Climate activists hold banners outside the venue of the COP29 climate conference in Baku, Azerbaijan. Photographer: Andrey Rudakov/Bloomberg (Andrey Rudakov/Bloomberg)

(Bloomberg) -- Protecting the planet is a global endeavor that only works if countries agree to take collective action. Judging by how the most important climate negotiations went this year, things aren’t going well.

In 2024, talks to halt plastic pollution, protect biodiversity and end desertification all failed. Meanwhile, a deal at the COP29 summit left developing nations unhappy with the amount of money agreed upon to help them battle global warming and avoided mentioning the need to move away from fossil fuels.

“It has become increasingly more difficult to come to an agreement that is ambitious yet feasible and that will address the problem at hand,” said Maria Ivanova, director of Northeastern University’s School of Public Policy and Urban Affairs. “Issues like climate change and plastic pollution are inherently systemic, cross-sectoral, and embedded in economic structures.”

Global environmental agreements have never been simple. But political polarization, the growing influence of multinational corporations and strained government budgets have made countries less willing to compromise.

“By the time we get to a text or to an agreement that has a consensus, it is so diluted that ultimately it's almost nothing,” said Juan Carlos Monterrey-Gomez, Panama’s special representative for climate change, who attended all four major international climate negotiations this year.

Here’s a look at how some of the main global talks around climate and the environment fared in 2024.

Climate Change

Nearly 200 countries agreed in Baku, Azerbaijan, to triple funds available to help developing countries confront rapidly warming temperatures at COP29 in November. But the talks were at times openly hostile and produced an agreement that even many supporters saw as insufficient and disappointing.

Rich countries pledged to provide at least $300 billion annually by 2035 through public finance as well as bilateral and multilateral deals. The agreement also calls on nations to unleash a total of $1.3 trillion a year, with most of it expected to come through private financing.

The talks kept “the multilateral system alive,” Monterrey-Gomez said in Baku. Yet the failure to deliver on key promises means efforts to to limit global temperature rise to 1.5C are “dead,” he said.

Plastic Pollution

Despite overwhelming public and business support, negotiators in Busan, South Korea, failed to reach consensus on cutting plastic production and phasing out dangerous chemicals at what was supposed to be the culmination of two years of talks on a global plastics treaty.

Listen to Zero: Why the Plastic Problem Needs a Legally Binding Global Treaty

Progress was blocked by oil suppliers including Saudi Arabia and Russia. Boosting the use of plastics, which are made from fossil fuels, is a crucial growth area for the industry as electric vehicles and renewables erode demand for crude.

Countries fighting for a legally binding treaty admitted they need to do more. “We should have improved our coordination,” Camila Zepeda, Mexico’s chief climate and biodiversity negotiator, said in Busan. “We are realizing that we need the attention of everyone.”

Negotiators aim to reconvene the talks next year. There is rising support among the majority of countries to limit the production and consumption of plastics, restrict harmful chemicals and phase out single-use products like cutlery.

Biodiversity Loss

The COP16 meeting in Cali, Colombia, ended without an agreement to advance a landmark biodiversity-protection pact adopted two years ago. Countries disagreed about the creation of a new global nature fund and delegates started to leave as the meeting ran into overtime.

The summit did achieve some of its goals. Countries will move forward with a new Cali Fund to protect nature, to be paid into by companies that sell products, such as pharmaceuticals and cosmetics, based on genetic data collected from the natural world.

But what was dubbed at the outset as a “COP of implementation” still fell short of ambitions. The majority of parties failed to submit their plans to meet the 2022 pact, and rich nations pledged just a trickle of new money.

Desertification

The COP16 gathering in Riyadh, Saudi Arabia, in December sought to combat desertification, but delegates failed to agree on a global mechanism for tackling drought.

The talks were aimed at financing early-warning systems and resilient infrastructure in poorer countries which are the most vulnerable. Scientists have warned that more than 75% of the Earth’s landmass has become permanently drier over the past three decades due to human activity and climate change.

What’s Next?

The rate at which international environmental agreements are made has slowed significantly from a peak in the early 2000s, says Jean-Frederic Morin, a professor at Laval University in Canada. But that's more likely because so many already exist, rather than talks becoming more challenging, meaning negotiators will need to shift their focus from new treaties to improving and strengthening existing deals.

“We tend to be myopic, seeing recent challenges more clearly while forgetting those of the past,” Morin said. “Negotiations were, and remain, difficult.”

One way to kickstart more ambitious environmental agreements would be to trigger voting among countries instead of trying to reach consensus when negotiating deals, said Panama's Monterrey-Gomez, who noted that many historical conventions were taken through a simple majority or two-thirds vote.

Another alternative is for small groups of states and multi-sectoral coalitions to form alliances that address common priorities, said Northeastern University’s Ivanova.

“‘Minilateralism’ is emerging as an alternative or at least a complement to multilateralism,” she said. “They are more nimble and can create momentum for broader adoption of shared goals.”

©2024 Bloomberg L.P.