Gowling WLG, corporate partner at our CBI Midlands Business Dinner 2025, looks at some of the key takeaways from the major environmental conferences of 2024 and considers the growing importance of commercial voices in environmental matters.
In the coming year, environmental risks will almost certainly worsen. The prospect of increasing short-term concerns, coupled with the geopolitical climate, could influence the commercial world to take a larger step forward as advocates for commercial action. 2024 saw four major international efforts to secure agreement on a range of environmental matters but negotiations were not as successful as had been hoped earlier in the year.
1. The 2024 United Nations Biodiversity Conference (CBD COP16)
The first meeting of the Parties to the Convention on Biological Diversity (1992) since reaching agreement on the Kunming-Montreal Global Biodiversity Framework at COP15 in 2022 took place in Cali, Colombia in October 2024. The Framework set parties four ambitious goals for 2050 and 23 targets for 2030 - the details of which are summarised in our article on how global agreements, nature markets and corporate disclosure can help protect and enhance the natural world.
Time ran out before all decisions could be reached at CBD COP16, so the parties will reconvene in Rome in February 2025. CBD COP16 was not without success though and the US$ 1 billion Cali Fund to help developing countries and Indigenous Peoples and local communities to share the benefits from uses of digital sequence information on genetic resources and the discussions around nature markets to secure investment into the restoration or conservation of nature were strong examples.
2. The 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29)
COP29 in Baku, Azerbaijan in November 2024 only just reached agreement in terms of financial settlement to assist those countries considered most vulnerable to the effects of climate change. The financial goal was raised to US$300 billion, replacing the previous US$100 million, but still lower than the US$1.3 trillion sought by the developing countries.
Despite the challenges, there were several highlights, as details were agreed on how carbon markets will operate under the Paris Agreement, with new rules underpinning carbon trading and the establishment of a centralised crediting mechanism allowing for country-to-country trading of high-integrity carbon credits.
Nationally Determined Contributions were also clarified with national governments needing to submit their updated roadmap to carbon reductions to the UN. This provides a forum for business leaders to congregate and collectively petition for ambitious NDCs to be submitted just as carbon markets open up opportunities for businesses to get involved.
3. The UN Plastics Treaty
Busan in the Republic of South Korea hosted the 5th session of the UN Intergovernmental Negotiating Committee (known as INC-5) in November 2024.
Whilst no agreement was reached to end plastic pollution, UK businesses involved in the plastic value chain published a statement in advance of INC-5 highlighting the power of the commercial voice, calling for "an ambitious treaty" and that they are "ready to mobilise significant investments".
4. The 16th session of the Conference of the Parties of the United Nations Convention to Combat Desertification (UNCCD)
In relation to business, UNCCD COP16 in Saudi Arabia in December agreed to mobilise the private sector to a much greater extent.
While steps forward were made on this, a legally binding agreement is yet to be reached and it is estimated by the UNCCD that US$ 2.6 trillion will be required by 2030 to restore more than one billion hectares of degraded land, globally.
Why business leaders can be strong advocates for environmental change
The role of the private market mechanisms to addressing environmental harms is clear and they will be critical to securing investment. The call for advocacy from businesses has been loud and clear to push for further improvement in policies, but also to signal an appetite for regulation, stronger policy and to step forward.
Business leaders are in post longer than political leaders, often operating globally across vastly different environments and communities. The insight and perspective this provides is important to policymakers with the decisions made being implemented by businesses. The commercial world can lend its voice in response to planned changes and advocate for ambitious climate policy, indicating the commercial sector's support towards new environmental goals. It's important that businesses are involved in the 'design stage' of new policies and legislation by offering constructive and honest feedback.
There are reasons to remain hopeful when reflecting on the outcome of these discussions. Business leaders have a crucial role in setting the climate agenda in 2025 alongside national governments.
For more information on how you and your business can impact future climate policy, speak to our UK Head of Gowling WLG ESG team and Sustainability Partner, Ben Stansfield.
