context: Last year's COP29 adopted 20 decisions under the United Nations Framework Convention on Climate Change, Kyoto Protocol and Paris Agreement frameworks, setting post-2025 climate finance goals to support the actions of developed countries. Rules for international carbon markets and arrangements for mitigation work programs and global adaptation goals were also established.
With less than a month remaining before the opening of COP30 (UN climate conference), PRC experts discuss the importance of the conference for converting climate commitments into concrete action. The conclave must achieve real progress in three areas, argues Tang Renhu 唐人虎 Sinocarbon Innovation and Investment general manager
- enacting new financing goals equitably, transparen and with adequate oversight
- toughening transaction rules for the international carbon market, ensuring high quality and traceability
- urgently member states to be more ambitious, aligning NDCs (nationally determined contributions) with the 1.5 degree goal
Raising nature and biodiversity to the core agenda is crucial, argues Liu Feng 刘锋 International Institute of Green Finance chief economist. Hosting COP30 in the Amazon signals that protecting climate entails protecting nature. Nature-based solutions like Brazil's Tropical Forest Forever Fund will take centre stage.
2025 marks the tenth anniversary of the Paris Agreement and the deadline for countries to submit new, more stringent NDCs; yet progress remains slow. Only 32 percent of countries have to date submitted updated targets, less than 6 percent of emissions required to stay on the 1.5 degree pathway.
Beyond NDCs, the development of a global carbon market will be another focus. Core issues lie in integrity and trust, noted Liu. Current carbon-credit quality varies widely, making standards essential. Additionally, translating complex rules of Article 6 into workable, cost-effective mechanisms will also be crucial.
The host country has proposed forming a voluntary alliance to link existing carbon-pricing systems. This could integrate dispersed mechanisms into a more liquid, low-cost and credible carbon market, providing financing and mitigation pathways, argues Tang. However this requires solving issues of rules alignment, credit quality and cross-border legal coordination to reduce risk and attract private capital.
Finance remains a central topic. COP30 must achieve breakthroughs in unlocking private capital, says Liu, including
- implementing Article 2.1 of the Paris Agreement to align financial flows with low-emission and climate-resilient development
- creating a framework to track financing progress and reorient investment strategies
- promoting reform of multilateral development banks and innovative financing
- expanding risk mitigation tools such as blended finance and sustainability-linked bonds
The PRC's NDC 3.0 provides a practical example for global climate governance, proving that large-scale low-carbon transformation is feasible and can balance economic growth, energy security and a just transition, adds Tang.