The 29th UN Climate Change Conference of the Parties (COP29), held last week in Baku, was heralded as a pivotal moment for global climate finance. Instead, it left many deeply disappointed. For developing nations like Malaysia, striving to balance ambitious climate action with equitable growth, the diluted outcomes on financing were a stark reminder of the fragility of international consensus. COP29 underscored the urgent need to reimagine how signatories to the Paris Agreement approach these negotiations.
At the heart of the disappointment was the refusal of many developed nations to meaningfully address climate finance. While the operationalisation of the “Loss and Damage Fund” was a long-overdue step forward, its pledged US$730 million falls far short of the level of ambition required. Meanwhile, commitments to deliver the long-promised US$100 billion annual climate financing funds – first pledged in 2009 – remain unmet. The new target of US$300 billion by 2035 is grossly insufficient to keep the 1.5°C target within reach.
Climate change is not an isolated issue, but a crisis intertwined with health, food security, energy, and social systems. Linking climate finance to outcomes such as reduced health costs and strengthened economies creates a more compelling case for action. Yet, as impassioned appeals echoed from the world’s most vulnerable nations, responses from wealthier countries felt rehearsed and lacking in genuine accountability. Those most responsible for the climate crisis continue to shirk their fair share of the burden.
Malaysia, while faring better than many, stands in solidarity with nations unable to scale up adaptation and mitigation efforts due to financial constraints. Recognising our relative privilege, we have sought to lead by example. Malaysia’s National Climate Change Policy 2.0, approved in September 2024, integrates Paris Agreement principles and sets a pathway for a low-carbon economy. Plans like our National Adaptation Plan (NAP) and the soon-to-be-finalised National Determined Contribution (NDC) Roadmap demonstrate our commitment to climate resilience.
However, national efforts alone are insufficient. International climate funds such as the Global Environment Facility (GEF) and the Green Climate Fund (GCF) need revitalisation to accelerate funding distribution for mitigation and adaptation projects. Climate change is a global challenge requiring collective action, and Malaysia is acutely aware of the limitations faced by many Global South nations without adequate resources.
One promising outcome of COP29 was the operationalisation of Article 6 of the Paris Agreement, which establishes global carbon market mechanisms. Malaysia is aligning this framework with its own National Carbon Market Policy to mobilise financing for carbon projects. Similarly, our National Planetary Health Action Plan (NPHAP) – the first of its kind globally – aims to integrate climate resilience with biodiversity conservation, food security, and public health outcomes, framed through an equity-driven lens.
Baku also highlighted the critical need for greater unity among Global South nations. For too long, our voices in climate negotiations have been fragmented. Rising temperatures, erratic weather patterns, and biodiversity loss know no borders, and countries in the Global South must stand together to negotiate more effectively. As Malaysia prepares to assume the ASEAN chairmanship in 2025, we see an opportunity to amplify regional voices and priorities on the global stage.
One area of significant progress at COP29 was the strengthening of regional cooperation. For example, major carbon market associations across Malaysia, Indonesia, Singapore, and Thailand formalised a historic partnership on a unified carbon framework. This initiative aims to increase the supply of high-quality carbon credits and enhance regional demand, fostering economic growth and climate action.
Climate action cannot be achieved through national or regional efforts alone. Multilateralism remains our best hope for addressing the climate crisis. However, the shortcomings of COP29 – particularly the lack of inclusivity and transparency in decision-making – have exposed the imperfections of this process. To succeed, the multilateral framework must be robust, transparent, and centred on justice. We have work to do to reinject a sense of trust and rekindle genuine respect for all nations involved in the negotiations.
COPs should not be arenas where the powerful dictate terms to the powerless. Instead, they must be platforms for genuine partnership, where the collective strength of the Global South can compel more ambitious commitments from wealthier nations. Climate justice demands not only the participation of all nations but also recognition that those with greater historical responsibility must do more.
As we approach COP30, the shortcomings and failings of Baku must galvanise renewed determination. For Malaysia, this means continuing to integrate planetary health into our climate agenda, fostering regional solidarity, and pressing for fairer, more ambitious outcomes in multilateral forums. The clock is ticking, and the world cannot wait. For the sake of our planet and future generations, we must rise above inaction and seize this critical moment to secure a just and sustainable future.
Nik Nazmi bin Nik Ahmad is Malaysia’s Minister of Natural Resources and Environmental Sustainability.
Jemilah Mahmood is the executive director of the Sunway Centre for Planetary Health at Sunway University, Malaysia.
