What They’re Saying About the COP29 Climate Finance Deal

Current conditions: A California wildfire burned some 400 acres near the site of the Hell’s Kitchen Lithium Extraction Project • Storm Bert in the U.K. killed at least five people and triggered 150 flood warnings • Many parts of the U.S. could see their coldest weather of the season on Thanksgiving and Black Friday.

THE TOP FIVE

1. COP29 ends with $300 billion climate finance goal

The UN COP29 climate summit came to a close Sunday – two days behind schedule – after delegates reached a deal on a sum for a new climate finance goal. Developed countries pledged to give at least $300 billion annually by 2035 to help poorer countries adapt to climate change and transition away from fossil fuels. That’s up from the previous goal, set in 2009, of $100 billion, but well below the $1 trillion economists say will be needed. That a deal was reached at all was seen as a success after two weeks of stalemate. But many from developing nations found it insufficient. Here are some reactions:

• “This deal will keep the clean energy boom growing and protect billions of lives. But like any insurance policy, it only works if the premiums are paid in full, and on time.” –UN climate chief Simon Stiell.
• “The goal is too little. Too distant. The proposed goal shall not solve anything for us.” –Chandni Raina, an adviser with India’s Ministry of Finance.
• “While wealthy, polluting countries should have committed to a higher amount, this is a floor not a ceiling. The pressure to increase funding will only grow over time, as the economic and security rationale for delivering more international climate finance is clear.” –Manish Bapna, president of the Natural Resources Defense Council.
• “This finance goal comes with no assurance that it will not be delivered through loans or private finance rather than the grant-based public finance developing countries desperately need.” –Tracy Carty, a climate politics expert with Greenpeace International.

Beyond the climate finance deal, the summit did not result in a clear plan for how countries will transition away from fossil fuels, as pledged at last year’s COP28, nor details on tripling renewable energy capacity.

2. Final meeting on global plastics treaty kicks off

As one UN summit winds down, another begins. This week delegates from 175 countries will gather in Busan, South Korea, with a goal of cementing a global treaty on reducing plastic pollution. Some nations want to tackle the problem by curbing plastic production, while others – especially petrostates and representatives from the chemicals industry – want to focus on ways to reuse and recycle plastics. Researchers say that without a treaty, plastic pollution will double by 2050. Already the world produces half a billion tons of the stuff every year, and most of that ends up being dumped. A few months ago, the U.S. signalled it would back a treaty to curb production, but experts think Donald Trump’s election win makes such a move less likely.

This fifth round of talks on an international plastics treaty is meant to be the last. Most plastic is made from fossil fuels. The International Energy Agency estimated that this year one-fifth of the world’s oil will go toward industrial and chemical sectors. As the energy transition ramps up, major oil and gas producers see the plastics market as a “plan B.” Indeed, the Financial Times reported today that “the biggest takeover deal in Europe so far this year” – oil company Adnoc’s €15 billion ($15.7 billion) purchase of German polymers producer Covestro – is being driven by a projected growth in demand for plastics.

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3. DOE expected to publish LNG environmental report this week

One to watch for this week: The Department of Energy’s analysis on the environmental and economic impacts of natural gas exports could be released in the next few days, E&E News reported. It’s likely to conclude that U.S. LNG shipments are worse for the climate than coal in some countries where those shipments wind up, and that they drive up domestic prices. “The assumption is that a good time to release such a report would be the Friday after Thanksgiving,” one energy lobbyist told the outlet.

4. Report: Tesla plant in Austin violated environmental rules

Tesla’s massive EV production plant in Austin, Texas, spewed environmental toxins into the surrounding air and water for months back in 2022, according to an investigation by The Wall Street Journal. The hazards were not addressed even after managers were made aware of them, and employees felt pressured by CEO Elon Musk to put production goals ahead of regulatory compliance. “Across his business empire, Musk’s companies show a pattern of breaking environmental rules again and again, federal and state government filings and documents show,” the Journal said. It noted that as co-head of the new “Department of Government Efficiency” under the Trump administration, Musk is likely to try to cut environmental regulations that apply to his own companies.

5. Costs of replacing EV batteries to match ICE by 2030

A recent report finds that the cost of replacing an EV battery pack will soon be lower than the cost of replacing an internal combustion engine. The analysis comes from Recurrent, a startup focused on helping buyers understand battery health in used EVs. (As CNBC explained earlier this year, “Recurrent aims to do for electric vehicle batteries what odometers do for fuel-powered cars: show the wear and tear on the battery and its future value.”) While it’s unlikely that an EV driver would need to replace a battery, this possibility remains a nagging concern, especially among those who might consider buying a used EV. The report found that, as the price of lithium-ion batteries falls, so will the cost of replacing them. By 2030, the cost will be at parity with that of replacing an ICE, and at the same time, used batteries could be sold on. “The takeaway? It will no longer be the case that a 10+ year old EV is worthless,” the report said. “It will be very feasible for someone to buy an inexpensive EV and replace the battery pack for a few thousand dollars.”

Recurrent

THE KICKER

The toxic pollution that shrouds India’s north costs the country’s economy $95 billion each year, or about 3% of GDP.