By: Jacob Kim
COP29, the 29th annual United Nations climate summit in Baku, Azerbaijan, is underway with a vital focus on securing climate finance to support developing nations facing severe climate impacts. Dubbed the “finance COP,” this year’s summit aims to strengthen financial commitments from wealthy countries, helping poorer nations build climate resilience and transition to clean energy. Yet, COP29 arrives in a period of significant geopolitical uncertainty, largely shaped by the recent U.S. election that re-elected Donald Trump—a result that casts doubt on America’s continued commitment to global climate agreements and renewable energy investments.
Renewable energy is central to the mission of COP29, as shifting from fossil fuels to clean energy sources is essential to reducing global emissions. Many developing countries face high upfront costs in adopting renewable energy infrastructure, making climate finance crucial. Without financial support from wealthier nations, poorer countries may struggle to make this transition, despite being among the hardest hit by climate change.
The U.S. has historically played a substantial role in funding renewable energy and climate adaptation, often providing essential backing for international initiatives. Under the Biden administration, substantial progress was made in supporting renewable energy through measures like the Inflation Reduction Act (IRA), which spurred private investment in green infrastructure and helped drive down costs. However, the Trump administration’s return could mean a potential rollback of these federal investments, threatening the progress made in recent years and creating uncertainty around future renewable energy projects in the U.S. and beyond.
The re-election of Donald Trump signals a potential U.S. shift away from current climate commitments. Trump’s stance on climate has previously included skepticism toward climate science, the promotion of fossil fuels, and withdrawal from the Paris Agreement. His team has even hinted at a possible U.S. exit from the UN’s entire climate framework, the UNFCCC (United Nations Framework Convention on Climate Change). Such a departure could disrupt international unity and weaken the financial support that many countries rely on for climate adaptation and clean energy projects.
A U.S. withdrawal from these commitments could create a leadership vacuum, as the U.S. has long been a driving force behind global climate initiatives. Without American participation, other nations—such as those in the European Union and Asia—would likely need to step up, but matching the scale and influence of U.S. leadership is challenging. The absence of U.S. support would also affect global renewable energy supply chains and technological development, potentially slowing down the green transition worldwide.
As the world experiences record-breaking temperatures and escalating climate disasters, the need for decisive climate action is clear. The U.N. warns that without immediate cuts to emissions, the 1.5 degrees Celsius warming limit set by the Paris Agreement will be breached, leading to irreversible consequences. For developing countries, increased climate finance at COP29 is not just about mitigation but survival. Ensuring that these nations can access renewable energy will be essential to curbing global emissions and protecting vulnerable communities.
Despite potential challenges from shifting U.S. policies, the renewable energy movement has strong momentum. Falling technology costs, private sector investments, and proactive state and city-level climate policies across the U.S. have bolstered the clean energy transition. However, federal support remains essential for achieving large-scale progress, especially in developing technologies like green hydrogen and carbon capture, which require significant upfront investment.
COP29 represents a pivotal moment for the world’s commitment to climate action and renewable energy. Mukhtar Babayev, COP29 President-Designate, emphasized the urgency of climate finance, stating that “billions of people are counting on us to deliver climate finance at a scale that is adequate to the urgency and scale of the problem.” The summit is a test of global resolve, particularly in the face of uncertainties about U.S. involvement. Other countries, businesses, and local governments may need to step forward and lead in the renewable energy transition, ensuring that climate progress continues despite political shifts.
The outcome of COP29 will likely determine whether the world’s renewable energy efforts can keep pace with the climate crisis. While the future of U.S. involvement remains uncertain, this summit is an opportunity to solidify commitments, align funding with climate goals, and sustain the momentum of clean energy investments. The path set at COP29 will shape the future of the global response to climate change, making it a defining moment in humanity’s fight to secure a sustainable and resilient future.
Sources
Energy Outlook 
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