November 25, 2024 - As COP29 concluded on 24 November, the urgency of the climate crisis could not have been clearer. In recent years, the world has experienced some of the hottest summers on record, with global temperatures now nearly 1.2°C above pre-industrial levels (IPCC, 2023). Extreme weather events, from devastating floods to catastrophic wildfires and heatwaves, have caused widespread destruction. The Horn of Africa is facing famine due to severe droughts, while Pacific Island nations are confronted with the existential threat of rising sea levels. Even western countries are increasingly suffering the effects of climate change.

Global injustice and the financial challenge

The financial toll of these climate disasters is significant. According to McKinsey, only 25% of the $300 billion needed annually for climate adaptation is currently being invested, with much of the capital concentrated in wealthier nations. Despite recent commitments made at COP29, including the creation of the Loss and Damage Fund, the funding remains insufficient to meet the pressing needs of the world’s most vulnerable regions. This financial disparity is not just an inequity—it is a glaring global injustice, as low-emission countries bear the heaviest burden of the climate crisis.

The International Energy Agency (IEA) also underscores the urgent need to scale up investments in renewable energy. While renewable energy sources like wind and solar now represent nearly 10% of global energy consumption, fossil fuel subsidies still exceed $400 billion annually, undermining the transition to a low-carbon economy. This continues to present a significant challenge for both energy and climate justice.

Disappointment in COP29’s outcomes

In this context, the results of COP29 were underwhelming. The climate finance deal agreed upon at COP29 falls well short of what is needed, particularly for developing nations. The pledge to provide $300 billion annually by 2035 is insufficient given the urgent need for immediate action. This missed opportunity weakens global efforts to tackle climate change and leaves vulnerable communities increasingly exposed to even greater climate disasters. Additionally, COP29 failed to send a strong message about the critical need to reduce emissions and phase out fossil fuels. The proposed roadmap for increasing climate finance to $1.3 trillion remains vague, and time is quickly running out to transform these commitments into tangible results.

The way forward: Bold action and systemic change

The next decade will be crucial. We must act quickly, decisively and collaboratively. This is not the time for half-measures, but for bold action and systemic change. The question is still: will we, as investors, rise to this challenge? Will we leverage our capital to create long-lasting, positive impact, rather than simply mitigate harm?

At VP Capital, we believe the private sector has a transformative role to play in driving meaningful change. Traditional approaches to climate finance are no longer enough. To meet climate goals, we must invest in solutions that go beyond mitigation, prioritising resilience, regeneration and systemic change. This means directing capital toward renewable energy, regenerative agriculture and ecosystem restoration.

We are committed to turning COP29’s promises into real, tangible actions. The only way forward is through collaboration. Together, we can unlock innovations and solutions, scale up change, and drive the systemic change necessary to build a resilient, regenerative and equitable future for all. The time to act is now.