This aligns with the priority set by the President of the Republic of Azerbaijan , Ilham Aliyev , to address the challenges posed by climate change impacts on small island states under the COP29 Presidency .

The establishment of the Loss and Damage Fund was agreed upon during COP27 held in Egypt . The fund aims to provide financial assistance to countries most vulnerable to the impacts of climate change .

During COP28 in the United Arab Emirates , a decision was made to launch the Fund ’ s operations .

The COP29 Presidency has taken significant steps to ensure the Fund ’ s operationalisation , working closely with its Board and the World Bank .

In September of this year , during the Fund ’ s third Board meeting held in Baku , critical measures were taken to commence its

operations , including the appointment of Ibrahima Cheikh Diong as the Fund ’ s Executive Director .

Within the framework of COP29 , several essential agreements related to the Loss and Damage Fund were signed .

These include the “ Trustee Agreement ” and “ Secretariat Hosting Agreement ” between the Fund ’ s Board and the World Bank , as well as the “ Host Country Agreement

” between the Fund ’ s Board and the host country , the Republic of the Philippines .

To date , the total pledged financial support for the Fund exceeds $ 730 million .

With these achievements , the Loss and Damage Fund will be able to start financing projects beginning in 2025 . This marks yet another success of Azerbaijan ’ s COP29 Presidency .

THE COP29 Presidency of Azerbaijan announced the agreement of the Baku Finance Goal ( BFG ), a new commitment to channel $ 1.3tn of climate finance to the developing world each year .

Success on the COP29 Presidency ’ s top priority for the UN Climate Summit represents a significant uplift from the previous climate finance goal of $ 100 billion . It will unlock a new wave of global investment .

The Baku Finance Goal contains a core target for developed countries to take the lead on mobilising at least $ 300 billion per year for developing countries by 2035 .

This represents a $ 50bn increase on the previous draft text and is the product of 48 hours of intensive diplomacy by the COP29 Presidency . It pays special consideration to support the least developed countries and small island developing states , with provisions on accessibility and transparency .

The Baku Finance Goal is the centrepiece of a package of agreements that deliver progress across all climate pillars .

These breakthroughs are the result of months of intensive diplomacy by the Azerbaijani Presidency to deliver some of the most complex and controversial tasks in multilateral climate action .

They mark a critical step in putting in place the means to deliver a pathway to 1.5C .

COP29 ended the decade-long wait for the conclusion of Article 6 negotiations on high-integrity carbon markets under the UN . Financial flows from compliant carbon markets could reach $ 1 trillion per year by 2050 .

They also have the potential to reduce the cost of implementing national climate plans by $ 250 billion per year . When combined , the Baku Finance Goal and Article 6 will forever change the global climate finance architecture by redirecting investment to the developing world .

In the plenary session , Parties in Baku unanimously agreed to an expression of gratitude to the government of the Republic of Azerbaijan and the people of Azerbaijan for the generosity and hospitality they demonstrated in

hosting the 29th Conference of the Parties .

The COP29 Presidency also succeeded in getting the Fund for Loss and Damage up and running and ready to distribute money in 2025 . This decision was long awaited by developing countries , including small island States , least developed countries , and African nations .

This aligns with the priority set by the President of the Republic of Azerbaijan , Ilham Aliyev , to

address the challenges posed by climate change impacts on small island states under the COP29 Presidency .

COP29 President Mukhtar Babayev said : “ When the world came to Baku , people doubted that Azerbaijan could deliver . They doubted everyone could agree . They were wrong on both counts .

“ With this breakthrough , the Baku Finance Goal will turn billions into trillions over the next decade . We have secured a trebling of the core climate finance target for developing countries each year .

“ The Baku Finance Goal represents the best possible deal we could reach , and we have pushed the donor countries as far as possible .

We have forever changed the global financial architecture and taken a significant step towards delivering the means to deliver a pathway to 1.5C . The years ahead will not be easy .

“ The science shows that the challenges will only grow . Our ability to work together will be tested . The Baku Breakthrough will help us weather the coming storms .”