In 2024, there were four major international efforts to secure agreement to address biodiversity loss, climate change, desertification and plastic pollution.
The outcome of these kind of international negotiations is rarely binary (in terms of defining what constitutes success or failure) but it is clear that, overall, efforts to address the big environmental issues of the day were not as successful as might have been hoped for earlier in the year.
In 2025, environmental risks will almost certainly worsen, increasingly presenting short-term concerns rather than the medium- to long-terms harms. This trend, coupled with the current geopolitical climate, might open up opportunities for the commercial world to step forward more as advocates for environmental action.
In this article, we look at some of the key takeaways from the four major environmental conferences of 2024 and consider the growing importance of commercial voices in environmental matters.
1. The 2024 United Nations Biodiversity Conference (CBD COP16)
COP16, the Biodiversity COP, took place in Cali, Colombia in October 2024 and was 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. 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.
CBD COP16 ran out of time before all decisions could be reached and so it's been agreed that the parties will reconvene in Rome in February 2025 to ensure outstanding items are addressed. Notwithstanding this, there were notable successes from this year's negotiations on biodiversity:
The Cali Fund
A US$1 billion fund is being set up to share the benefits from uses of digital sequence information on genetic resources (DSI - in essence, nature's DNA) with developing countries and Indigenous Peoples and local communities. It will be funded by the pharmaceutical, cosmetics, agri-business and nutraceutical industries that use DSI in their products, applying a model whereby 1% of profits or 0.1% of revenue is allocated to the fund.
Nature markets
Although no formal decisions were taken, CBD COP16 was alive with discussions as to the possibility of nature markets - finding ways to secure investment into the restoration or conservation of nature. Participants at the conference shared case studies of mandatory markets, such as biodiversity net gain in England, discussed the significant potential for voluntary markets for both businesses and individuals to participate in, and collaborated on the market principles that would attract institutional investment.
2. The 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change
The United Nations Framework Convention on Climate Change (UNFCCC) had its 29th conference of the parties (COP29) in Baku, Azerbaijan, in November 2024. COP29 ran longer than scheduled and agreement was only just reached in terms of the financial settlement to assist those countries considered most vulnerable to the effects of climate change. This saw the previous finance goal of US$ 100 billion in funds replaced with a goal of US $300 billion annually by 2035, which although much increased is lower than the US$ 1.3 trillion that had been sought by the developing countries.
But despite the challenges of these negotiations, there were a number of highlights for the commercial world.
International carbon markets
For nearly a decade, participants at previous conferences had been unable to unlock agreement on the carbon markets. At COP29, the position changed and details were agreed to in terms of how carbon markets will operate under the Paris Agreement; an international treaty that set the goal of limiting the rise of global temperature to 1.5 degrees Celsius. As a result of the new rules underpinning carbon trading and the establishment of a centralised crediting mechanism, country-to-country trading of high-integrity carbon credits will now be possible. In turn, that will create opportunities for business to get involved in these markets.
Nationally Determined Contributions
By February 2025, national governments around the world will need to submit their updated Nationally Determined Contributions (NDCs) - essentially, their national roadmaps to carbon reductions - to the UN. The UK Government has been among the first to do so, announcing (at COP29) an NDC that will deliver an 81% reduction in greenhouse gas emissions by 2035 (compared to 1990 levels).
Similar to CBD COP16, alongside the focus on achieving formal agreement on a number of priorities, COP29 provided a forum for business leaders to congregate and collectively petition for ambitious NDCs to be submitted next year.
3. The UN Plastics Treaty
The 5th session of the UN Intergovernmental Negotiating Committee (known as INC-5) took place in Busan, Republic of South Korea in November 2024. It was expected that INC-5 would culminate in an agreed text on a legally binding instrument to end plastic pollution, particularly in the marine environment. The session ended, however, without agreement and so negotiations will continue in 2025.
Areas of debate included the target on reducing the production of primary plastic polymers, bans and restrictions of chemicals of concern in plastic products, as well as avoidable plastic products.
In advance of INC-5, a number of leading UK businesses involved in the plastic value chain published a statement. While not binding and, ultimately, not sufficient to persuade agreement between nations, it demonstrates the power of the commercial voice - signatories called for: "an ambitious treaty" and "[acknowledged] the critical role of the private sector, alongside the public sector, in addressing the root causes of plastic pollution. As businesses and financial institutions, we stand ready to mobilise significant investments, and engage with the companies we invest in, towards achieving the objectives of the legally binding instrument, including towards innovation and infrastructure".
4. The 16th session of the Conference of the Parties of the United Nations Convention to Combat Desertification
The United Nations Convention to Combat Desertification (UNCCD) held its 16th conference in Saudi Arabia in December 2024.
Like the other 2024 international environmental summits, there were a number of successful outcomes - for example, securing US$ 12 billion to combat land degradation, desertification and drought. 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.
Of interest to business, UNCCD COP16 agreed to mobilise the private sector to a much greater extent. According to the UNCCD, the private sector contributes just 6% of global finance towards land restoration and drought resilience, and the newly established "Business4Land Forum", which includes businesses in the finance, insurance, fashion, agri-food and pharmaceuticals sectors (all interested in sustainable land, soils, and water management), has called for companies to contribute to one or more of its pillars: promoting sustainable practices across business operations; supporting finance solutions; and advocating for better land and water management policies.
What are the key themes for business from these global summits?
While not all of the international summits from these past few months reached an agreed text that all parties were happy with, there were two clear themes for businesses:
The importance of market mechanisms
Both CBD COP16 and UNFCCC COP29 highlighted the role of the private market mechanisms as a means to addressing environmental harms. Whether through carbon markets or nature markets, and whether the mechanisms are mandatory or voluntary, it's clear these important markets will play a critical role in securing investment.
Business as environmental advocates
Another clear message across these international negotiations is the opportunity for business to signal an appetite for regulation and stronger policy and to step forward. That call for advocacy was certainly loud at CBD COP16 and UNFCCC COP29, but it can also be seen in the statement from business prior to INC-5 and the call at UNCCD COP16 where businesses are encouraged to advocate for further improvement in policies.
Why are business leaders so well-placed to push for environmental action?
So having established that there is a leading role for businesses to take, should they do so - what makes the private sector so well-placed to speak up on environmental matters and why is the collective voice of business welcome?
The importance of longevity among business leaders
On average, business leaders are in post longer than political leaders - according to the Harvard Law School Forum on Corporate Governance, the average tenure of a Chief Executive Officer is just over seven years, whereas the average tenure of a Prime Minister in the United Kingdom, for example, is five years and around two years for Secretaries of State. While business leaders clearly need to think about the short term and meeting the needs of their existing stakeholders, they also have the opportunity to focus on the longer-term. In addition, succession planning within a business can often see a CEO handover to a successor from within the existing director ranks, which allows a period of adjustment and also continuity.
In looking to the longer-term, business leaders need to think about and take decisions on developments such as low carbon investments, which may not see their costs recouped for a number of years.
The business community has a powerful voice
The detail of new national policy or legislation will generally follow a period of consultation, which provides an opportunity for the commercial world to lend its collective voice in response to planned changes. In this way, businesses can act as advocates for ambitious climate policy - whether by engaging with government and trade associations, submitting evidence in response to consultations or through their day-to-day operations and investments. Their advocacy can help to inform decision-making at a national level and indicate the commercial sector's support towards new environmental goals.
Businesses have international footprints
Governments can only set policy or legislation for their own territories and while that may have influence elsewhere, global reach is limited. Many businesses, in contrast, operate internationally, or across regions - they operate in multiple markets with global supply chains - and so they directly 'touch' different corners of the globe.
As a result of their large footprints, businesses interact with vastly different local environments and communities, beyond where they're headquartered. The broad vision this provides, and the insights they bring from operating in markets with different approaches to environmental protection, means that the perspectives of businesses on environmental matters - and their commitment to sharing best practices - are important to global policymakers.
Supporting the outcomes of these climate summits and beyond
Many of the decisions that were made at these international summits, or even just discussed, will ultimately be implemented by businesses - for example, through paying into the Cali Fund, participating in voluntary nature markets or the international carbon markets, or providing finance for climate adaptation and mitigation measures etc.
Given this important role in putting into operation the decisions being made in this area, it is important for business to get involved in the 'design stage' of new policies and legislation, providing constructive, honest feedback to support the development process. The outcome of this collaboration will act to support policymakers and enable the wider perspective the commercial world can bring to be taken into account.
Reflecting on the outcomes of discussions across these international summits, there are reasons to maintain hope in our collective ability to negotiate globally-binding targets and objectives with respect to environmental issues. Alongside the work being done by national governments to meet NDCs and climate goals, business leaders have a crucial role in setting the climate agenda in 2025 and beyond. Together they can innovate, invest, implement and inspire - and, in doing so, they will carry tremendous influence.
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