Under2 Coalition at COP29 Azerbaijan report

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The Under2 Coalition at COP29, Azerbaijan

Uniting Leaders, Driving Change

Letter from Champa Patel

Thank you again for joining the ninth annual Under2 Coalition General Assembly at COP29 in Baku. Your passion, dedication and commitment to the Coalition made our presence at these negotiations an incredible success – we know that we face challenging times as some national governments backtrack on their climate commitment. But you all stepped up. This matters more than ever as we approach our upcoming tenth anniversary in 2025 that will bring us together at COP30 in Belem, Brazil.

Despite the geopolitical turmoil that led to a smaller COP29 attendance, over 25 subnational leaders came together to discuss practical solutions to tackle the climate crisis. As the voice of states, regions, and provinces matter now more than ever, our General Assembly was a crucial one in setting a strong leadership agenda for 2025.

Our mission to drive climate action, fast and amplify the voice and profile of subnational governments as key players in the fight against climate change, has not changed. Throughout COP29, in all the events and activities we undertook, states and regions shared case studies, learnings and advocated on our needs, to ensure that the role we play contributes to an acceleration of the global climate agenda on our way to COP30.

The report you are about to read demonstrates the collective power of the Under2 Coalition governments when we come together to influence change, proving to the world why subnational governments are key stakeholders in the race to net

zero. For the year ahead, we urge you to keep the theme of this year’s General Assembly “Subnational Leadership to Global Progress” close to your heart and sustain the subnational momentum of COP29. As always, our promise is to ensure that subnational governments remain at the centre of the global climate discourse.

Subnational governments from California to Nigeria showed true leadership at COP29. The future is indeed local, and we cannot wait to see you all again in Brazil.

Thank you again for your unwavering support, and your drive to meet net zero targets. Thank you for showing the world what true subnational leadership looks like.

Highlights from the Under2 Coalition General Assembly

In a powerful keynote address, Jay Inslee, Governor of Under2 Coalition’s Washington State stressed the importance of continued state-level leadership. He highlighted how the recent U.S. election – and the incoming administration – “won’t halt progress, but can propel us toward even more rapid climate action.”

Giorgio Maione, Minister for Environment and Climate, Lombardy shared regional climate plans and funding mechanisms, underscoring the diversity and importance of subnational efforts in achieving global climate goals.

Under2 Coalition’s Maryland joined the Subnational Methane Action Coalition (SMAC), a global alliance of subnational governments dedicated to reducing methane emissions and demonstrating leadership in climate action.

The Under2 Coalition General Assembly

On the fourth day of COP29 – one of the most important for subnationals –the “finance” day, the Under2 Coalition General Assembly brought together subnational leaders under the theme “Subnational Leadership to Global Progress.” The discussions emphasised the critical role of subnational leadership in climate action and the need for ambitious Nationally Determined Contributions (NDCs) by the February 2025 deadline.

Climate Group’s CEO Helen Clarkson opened with: “Meeting in Baku feels like a contradiction as we’re at the heart of a petrostate with plans to increase its oil production in the coming years. But it’s also a reminder of the reality many nations across the world still face: a system that is heavily reliant on fossil fuels, and questions on how to get away from that.”

Director of the Under2 Coalition and Subnational Governments at Climate Group, Nehmat Kaur, led a panel on the ‘subnational superpower,’ highlighting the strength of subnational governments through their locally led approach. The panel emphasised the need for practical, just solutions to achieve global climate goals. Yana Garcia, Secretary for Environmental Protection, California shared: methane reduction is a key lever for subnational governments, as it significantly cuts both emissions and waste.

In a panel discussion on climate finance, Executive Director Champa Patel spoke with Gillian Martin, Scotland’s Cabinet Secretary for Net Zero and Energy, and Dr. Mahmoud Mohieldin, UN Climate Change High-Level Champion for Egypt and UN Special Envoy.

Both emphasised the critical role of public-private partnerships in mobilizing finance and advancing climate action. Dr. Mohieldin highlighted the necessity of scaling up these partnerships to bridge financing gaps in development and climate initiatives. Gillian Martin stressed the importance of collaborative efforts between governments and the private sector to achieve net zero targets and implement sustainable energy solutions: “The more that we can attract private investment into Scotland… the more money we can free up for our loss and damage program and a climate justice program as well.”

The morning concluded by highlighting the urgent call from subnational governments for practical, equitable, and multilevel solutions to climate change. Collaboration among states and regions remains vital to advance local and national climate goals.

“With the 2025 NDC deadline nearing, our shared goal is clear: turn commitments into tangible action at every level,” said Champa Patel, closing the Under2 Coalition General Assembly alongside leaders from Scotland, California, Pernambuco, and Taraba State.

When they tell us that we’re moving too fast, we respond, we’re moving too slow. And when the federal government decides to pump the brakes, we push the accelerator.
Serena McIlwain, Secretary of Environment, Maryland

Subnational Leadership to Global Progress: The Under2 Coalition at COP29

• Across COP29, our subnational governments showcased innovative financing and budgeting strategies and ideas to combat climate change. Catalonia highlighted its carbon pricing initiatives, including a regional carbon credit system aimed at investing in local forests, farmland, and coastal ecosystems.

• Without finance, climate action cannot happen. That is why Lombardy’s Minister of Environment and Climate, Giorgio Maione, discussed the “Next Generation Budgets” project. The project was recently launched in partnership with the Government of North Rhine Westphalia. It’s a two-year-long technical training project on green budgeting for state and regional governments from Europe and North America.

• At the Local Governments and Municipal Authorities (LGMA) press conference, California’s Natural Resources Secretary, Wade Crowfoot, emphasised the crucial role of subnational governments in climate action: “Subnational governments need to be seen and need to be treated as the effective partners that we are.”

• The UK Government announced an ambitious 81% reduction in emissions by 2035. First Minister with responsibility for Climate Change for Wales, Huw Irranca, welcomed the new UK Government’s leadership at COP29. Cabinet Secretary for Net Zero and Energy for Scotland, Gillian Martin, said she looks forward to “continuing to work with the UK Government on the critical UK-wide actions that need to be taken which will support our climate ambitions.”

We are not just subnationals, we are supernationals, because we always go faster than the federal level.
This recent election can spur us to more rapid action.
Governor Jay Inslee of Washington State

• Edu Effiom highlighted Cross River State’s responsibility as home to over 50% of Nigeria’s forest. With severe droughts fuelling illegal deforestation, building resilience while respecting local contexts is essential –and networks like the Under2 Coalition are critical.

• At the Subnational Climate Action Leaders Exchange (SCALE) event, subnational leaders launched the Zero Emissions & Resilient Buildings (ZERB) Accelerator, which aims to reduce emissions in the building sector. Under2 Coalition members Maryland, Washington State, and Bogotá committed to the initiative, emphasising enhanced coordination between subnational jurisdictions and national governments.

• North-Rhine Westphalia and UN Action for Climate Empowerment (ACE) announced the launch of the next phase of their collaboration. ACE Hub 2.0 that focuses on collaboration and multistakeholder engagement in climate action.

• Climate Group signed a letter coordinated by We Mean Business Coalition and Mission 2025, urging G20 leaders to show decisive leadership at COP29. This collective appeal emphasised the necessity for ambitious Nationally Determined Contributions (NDCs) and robust climate finance commitments.

• Climate Group’s Senior Manager, International Advocacy, Toby Walker led an Under2 Coalition intervention on behalf of LGMA during the AZE COP29 open dialogue on scaling adequate and urgent climate finance. He said: “The NCQG text emphasises an all-of-government approach, requiring active involvement of local and subnational governments for effective implementation.”

Media highlights:

• Climate Group and the Under2 Coalition pushed for stronger NDCs, efficient climate finance and bolder climate action. See some media highlights in the Press Association, IANS, Euronews, and The New York Times

• Champa Patel, Helen Clarkson, California and New Mexico spoke with The Energy Gang Podcast about climate finance and what the U.S. election means for climate.

• Under2 Coalition member Veronica Geese, Secretary for Energy Santa Fe was featured alongside Andrew Forth, Climate Group’s Head of International Policy and Advocacy, in Deutsche Welle commenting on the far-reaching impacts of Argentina pulling out of the Paris Agreement.

• The Under2 Coalition’s General Assembly was featured as a key event in POLITICO’s Global Playbook

• COP29 stakeholders including the COP presidency and UN Climate Chief Simon Stiell urged G20 leaders to ‘move swiftly.’ Leading the climate group delegation at the G20 in Rio, Champa Patel in her reactive statement called out the lack of global leadership.

Interested in becoming a member of the Under2 Coalition? Learn more.

What COP29 achieved

What were the key outcomes agreed at COP29 in Baku?

The main focus of the UN climate talks in Baku was finance, and precisely how much is needed for the world to stay within the 1.5C degree limit. The least developed countries, including those disproportionately affected by climate change, require US $1.3tn a year in climate finance from developed countries. 2024 is on track to be the warmest year on record. With extreme weather conditions from wildfires to floods damaging infrastructure and impacting lives, climate finance has never been more significant.

So, what was the deal? After intense negotiations including walkouts and protests, developed countries pledged US $300bn each year with the aim to scale up to $1.3 trillion by 2035. That’s completely divorced from the reality of what is needed now. Developed countries turned up empty handed while developing countries are already on the frontlines of climate impacts.

COP29 also failed to stand behind the breakthrough decision to transition away from fossil fuels, which was agreed by nations at UN climate talks in Dubai last year. There were reports that Saudi Arabia attempted to sabotage the fossil fuel phaseout discussions in Baku. Despite progress made at COP28, COP29 President Mukhtar Babayev failed to adopt a deal. This will now become a key issue through 2025.

For more on the outcomes and next steps read our COP29 analysis

The next big moment in your climate calendar:

US Climate Action Summit

April 22-29, Washington, DC

Followed by:

Climate Group Asia Action Summit
The Bonn Climate Change Conference June, Bonn

Thank you

Thank you for your unwavering commitment and collaboration throughout 2024. Your leadership on key initiatives has been invaluable, and we extend our deepest gratitude to the co-chairs and steering group for their stewardship.

Together, we’ll continue to embody global climate leadership—advancing the just transition from fossil fuels, reducing methane emissions, mobilizing subnational finance, and driving impact through multilevel climate action.

As we approach the Under2 Coalition’s 10th anniversary in 2025, we take pride in our shared progress and look forward to continuing our journey toward a sustainable and equitable future. With your partnership, we’re shaping the next decade of progress.

Under2

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