COP29: Financial Commitments or Status Quo? What to Expect for Indigenous Rights and Climate Action

By Bryan Bixcul (Maya-Tz’utujil), SIRGE Coalition Global Coordinator 

Last year at COP28, civil society came together in Dubai with a clear call to end fossil fuel dependency. Despite widespread consensus on the need for a transition, the influence of powerful oil companies and petrostate interests loomed large, shaping the outcome of the event's first Global Stocktake. This assessment reaffirmed a disappointing reality: current actions fall short of the 2015 Paris Agreement targets to limit global warming. Emissions continue to rise and actions around fossil fuel phase-out are simply not enough. In fact, oil producing countries are expanding production and extracting record numbers of oil. 

Here are some of the most important developments to watch for at COP29 this year: 

Finance: The New Collective Quantified Goal (NCQG) and the Need for Indigenous Peoples’ Direct Access to Financial Resources

At COP29, establishing the New Collective Quantified Goal (NCQG) on climate finance is at the top of the list of priorities for negotiations amongst countries. This new target aims to move beyond the shortcomings of the previous $100 billion annual pledge, which fell far short of meeting the actual needs of developing nations.  Research by McKinsey Sustainability showed that an additional two trillion dollars are needed, by 2030, to meet the goals of the Paris Agreement. Similarly, the Loss and Damage Fund, a mechanism established to support vulnerable countries experiencing severe climate impacts, remains a focal point at COP29. Despite initial pledges totaling around $700 million, this amount falls far short of the estimated $400 billion needed annually by 2025 to address climate-related loss and damage effectively. 

While the New Collective Quantified Goal (NCQG) aims to increase climate finance to meet the pressing needs of developing nations, the quality of this funding is just as critical as the quantity. Since 2016, approximately 70% of public climate finance has been provided as loans. Furthermore, UN figures reveal that at least one-fifth of these loans are “non-concessional,” meaning they are offered at market rates, offering no benefits to developing countries. This reliance on non-grant finance raises concerns about the genuine benefit to recipient countries, who often bear financial burdens rather than receiving direct climate aid. Additionally, transparency in how countries report climate finance remains a challenge, as analyses show that billions in reported climate finance have been rerouted from existing aid budgets rather than representing new money. Such practices distort the actual contributions and hinder true progress. For the NCQG to make an effective impact, it must establish clear standards for equitable and accessible funding that directly benefits the countries and communities most affected by climate change.

For Indigenous Peoples, one of the primary challenges in climate finance is the lack of direct access to resources and adequate level of funding. Despite a $1.7 billion pledge made at COP26 to support Indigenous-led climate initiatives, only 2.1% of the funds disbursed so far have gone directly to Indigenous communities, with 48% of the pledge delivered. This lack of access hinders Indigenous communities from fully implementing effective climate adaptation and mitigation strategies that are grounded in their Traditional Knowledge systems.

To address these issues, Indigenous leaders are advocating for the NCQG to include mechanisms ensuring direct access to climate finance for Indigenous Peoples. This involves dedicated funding streams that recognize the unique role Indigenous-led initiatives play in climate adaptation and mitigation. Such provisions would not only promote equity in resource distribution but also support climate actions rooted in Indigenous knowledge and stewardship. Further, the NCQG should enshrine safeguards that protect Indigenous rights, particularly Free, Prior, and Informed Consent (FPIC). Incorporating FPIC into NCQG projects would guarantee that any initiatives affecting Indigenous lands and resources are conducted with full Indigenous participation and respect for Self-determination. 

Carbon Markets: Protecting Indigenous Lands and Rights

COP29 will be pivotal for defining the operational standards of Article 6 mechanisms, a key aspect of the Paris Agreement’s carbon market framework. Indigenous leaders are pressing for protections within carbon markets to avoid the encroachment of Indigenous lands under the guise of carbon offsets. Specifically, there is a call for mandatory Indigenous participation at all levels of decision-making, explicit requirements for Free, Prior, and Informed Consent (FPIC), and transparency standards to prevent human rights abuses.

Carbon market structures under Articles 6.2 and 6.4 allow for international trading of carbon credits. However, Indigenous leaders emphasize that these mechanisms often lack oversight and sufficient safeguards to protect Indigenous lands and rights. This year, Indigenous leaders at COP29 will demand that Article 6 mechanisms honor Indigenous knowledge, preserve lands, and protect biodiversity, advocating that so-called nature-based solutions should not commodify or control Indigenous territories without obtaining Indigenous Peoples’ consent.

Energy Transition: Beyond “Green” Extraction

Last year, countries agreed on a goal to triple global renewable energy capacity by 2030. This will drive massive amounts of investment into extractive industries. Mining projects for transition minerals, used for renewable technologies and electric mobility, have led to land encroachments, biodiversity loss, and ecosystem destruction on Indigenous territories, in addition to contributing to even more carbon emissions. According to the UN Environment Programme Global Resources Outlook 2024: “To stay below a 2°C temperature rise by 2050, we will need over three billion tonnes of energy transition minerals and metals for wind power, solar, and more. Aiming for 1.5°C to maximize climate justice would mean even greater demand. Right now, however, resources are extracted, processed, consumed, and thrown away in a way that drives the triple planetary crisis – the crisis of climate change, the crisis of nature and biodiversity loss, and the crisis of pollution and waste. We must start using natural resources sustainably and responsibly.”

The current extraction-based model, which is an exact replica of the fossil fuel economy, remains problematic as over 50% of projects currently extracting transition minerals are on or near the lands of Indigenous Peoples. Indigenous leaders are urging that any transition be genuinely just, meaning it must prioritize Indigenous Self-determination, enforce the right to Free, Prior and Informed Consent, and fundamentally transform the current development models from extractive to regenerative to protect our vital ecosystems. 

At COP29, we have an opportunity—and a responsibility—to collectively challenge the notion that mining is inevitable to enable the just transition. The idea that “mining is essential for climate action” overlooks the costs to ecosystems, communities, and future generations. Instead, we should prioritize creating spaces for meaningful discussions around topics such as overdevelopment and overconsumption, and the different dynamics like geopolitics surrounding this increased demand for transition minerals. We must question not just how we transition, but how we can do so without repeating the same mistakes of the past. Indigenous voices will be central to this dialogue, reminding the world that a truly just transition respects the land, honors sustainable ways of life, and embraces paths to climate action that do not sacrifice the planet or its people.

Read about the vision of Indigenous Peoples for a Just Transition here.

Join SIRGE Coalition at COP29:

SIRGE Coalition, Batani Foundation, International Work Group for Indigenous Affairs (IWGIA), and Earthworks will be at COP29 engaging in discussions important to Indigenous rights and the just transition. Join us at the following events:

Challenging Energy Transition Paradigms: Indigenous People's Principles and Protocols for a True Just Transition
Date: 11/12/2024
Time: 1:00 - 1:30 PM
Location: Press Conference Room
Organizations: IPGCC, SIRGE Coalition, IWGIA, Batani Foundation, IITC
Description: Press conference to communicate the outcomes of the Indigenous Summit on Just Transition held in Geneva, Switzerland, on October 8-10, 2024.

The Summit on Just Transition: Outcomes of the Summit, Lessons Learned and Next Development
Date: 11/14/2024
Time: 14:50 - 16:05
Location: Indigenous Peoples Pavilion, Blue Zone
Organizations: Batani application jointly with IP Global Coordinating Committee
Description: Outcomes of the Summit on the Green Economy, lessons learned, and next developments. 

Transition Minerals Briefing: Progress and Challenges in Upholding Indigenous Peoples’ Rights in the Energy Transition
Date: 11/15/2024
Time: 16:30 - 17:50
Location: Indigenous Peoples Pavilion, Blue Zone
Organizations: SIRGE Coalition, Earthworks, Batani Foundation, IWGIA
Description: Over the last few years, there have been a myriad of developments throughout the transition minerals supply chains impacting Indigenous Peoples' rights and livelihoods. Mining companies keep pushing harmful narratives that look to position mining for minerals like lithium, copper, cobalt, and nickel as an essential part of the transition to a low-carbon emissions economy. Reignited geopolitical tensions, as a result of efforts to control transition minerals supply chains, are putting Indigenous communities at risk. Several mining standard-setting platforms are emerging, but not all of them offer full and equitable participation, access to information for Indigenous communities, as well as true implementation of Indigenous Peoples' rights including the rights to FPIC. At the same time, technology is rapidly evolving, which may offer alternative solutions when done right.

At this briefing, we will delve into these pressing issues and explore the latest developments in transition mineral extraction, particularly its intersections with Indigenous Peoples’ rights. We will discuss actionable strategies for defending and upholding Indigenous Peoples’ rights throughout the energy transition and foster capacity-building and solidarity among affected communities, ensuring their voices are at the forefront of shaping a just and sustainable future.

Winning Big for Just Transition at COP30
Date: 11/20/2024
Time: 11:30 – 12:30
Location: Just Transition Pavilion (Blue Zone)
Organizations: Climate Action Network International; SIRGE Coalition