Climate Change Administration

The key outcome of COP29 was the adoption of the New Collective Quantified Goal on Climate Finance Agreement, which confirmed:

• Funding commitment: developed countries agreed to provide at least US$300 billion annually by 2035 to support developing countries in addressing climate change challenges
• Diversified funding sources: beyond public funding, the agreement emphasized mobilizing private sector and philanthropic resources, targeting US$1.3 trillion in annual climate finance by 2035
• Use of funds: financing will support mitigation, adaptation, and loss and damage
• Transparency and accountability: a transparency and accountability system will require regular reports on fund allocation and use to ensure effective use of funds
• Expanded contributors: emerging economies and voluntary private contributors are encouraged to participate to expand fund sources and meet global climate action needs

Guidelines for setting GGA indicators, such as standards and timelines, were adopted, alongside the launch of the Baku Adaptation Roadmap and the Baku High-Level Dialogue on Adaptation, providing governance and coordination platforms to implement the GGA framework.

Responding to the first Global Stocktake findings, the “Enhanced Mitigation Pathway” was approved, including:

• All countries must update their NDCs by 2025 to cover all major sectors and net zero timelines
• Parties are encouraged to submit Long-Term Low Emission Development Strategies (LT-LEDS)
• Gradual phase-out of fossil fuel subsidies without carbon capture, with increased energy efficiency and renewable investment
• Support for multilateral initiatives such as the Green Hydrogen Partnership and Methane Action Initiative

With technical systems and institutional frameworks in place, market and non-market mechanisms are now operational. This establishes the legal and procedural foundation for cross-border reduction cooperation and carbon trading. The result marks the full formation of the global carbon market under the Paris Agreement and provides a clear pathway for parties and partners (including non-party economies) to participate in international reduction actions.

COP29 achieved historic breakthroughs in climate finance and implementation, initiating a new era of structured climate funding. The Baku Finance Agreement enhanced predictability for developing country funding and deepened private sector mobilization and multilateral reform. Negotiation focus will now shift to COP30 in Brazil, the Belém Action Phase, expected to center on implementation of the GGA and transparency in execution.

The Dubai Agreement explicitly incorporated “fossil fuels” into COP decision text for the first time, calling to:

• Transition away from fossil fuels, especially unabated coal
• Triple global renewable energy capacity and double energy efficiency improvement rates by 2030
• Encourage countries to cancel inefficient fossil fuel subsidies and scale up clean energy investment
• Reduce methane and other short-lived climate pollutants
• The Global Decarbonization Accelerator (GDA) was also launched, structured around three pillars: (1) renewable energy transition, (2) energy-efficiency doubling, and (3) decarbonization of methane and heavy industry.

COP28 made major advances on adaptation, adopting the Global Goal on Adaptation Framework and outlining key directions and targets:

• Milestones up to 2030:

  key results to reach by 2030 as set by the GGA Framework include

  • Impacts, vulnerability and risk assessment: countries should complete overall climate risk and vulnerability assessments by 2030 to provide bases for adaptation decisions
  • Early warning systems for multi-hazard events: all countries must be equipped with early warning and monitoring abilities by 2027
  • Climate information services: decision-oriented climate information and services should be popularized by 2030
  • National Adaptation Plans, (NAPs): countries should complete inclusive, gender-responsive, transparent NAPs
  • Monitoring, evaluation and learning systems: develop systematic systems to track outcomes of adaptation actions and ensure policy feedback loops

• Thematic Priority Areas:

  the GGA Framework defines seven key fields as global adaptation focuses until 2030

  • Water Resources
  • Food and Agriculture
  • Health
  • Biodiversity
  • Human Settlements
  • Social Protection
  • Culture

• Institutional arrangements and future works:

  to ensure the implementation of the GGA Framework, COP28 agreed to

  • A two-year Indicator Work Program that develops measurable and trackable metrics
  • Explore the applicability of the Common but Differentiated Responsibilities (CBDR) principle in adaptation, ensuring developing countries receive adequate funding and capacity support

  • Loss and Damage Fund

    Following COP27’s decision, COP28 officially launched the Loss and Damage Fund, with the World Bank as interim host. Over US$800 million was pledged on the first day by countries including the UAE, Germany, the UK, US, and Japan. The fund will begin accepting applications from the most vulnerable countries in 2024 for climate disaster recovery, rebuilding, and disaster prevention projects.

  • Climate finance and NCQG

    Climate finance remained a focus in negotiations. Although developed countries approached the US$100 billion annual goal, the funds were still inadequate for a global net zero transition. Parties agreed to finalize the new NCQG by 2024’s COP29, reflecting developing countries’ needs and equity principles, while urging reforms of multilateral development banks to enhance risk-taking and leverage benefits in order to reinforce private investment.

  • International cooperation and market mechanisms (Article 6)

    In terms of market and non-market cooperation mechanisms:

    • Article 6.2, cooperation methods: finalized initial report templates and digital submission system designs, reinforcing national-level adjustment procedures
    • Article 6.4, Sustainable Development Mechanism (SDM): the monitoring institution drafted methodologies for the SDM, though consensus on permanent removal and carbon capture accounting principles were deferred
    • Article 6.8, Non-Market Approaches (NMA): endorsed the framework for the information platform and interim progress report

    Parties were also encouraged to build High-Integrity Carbon Markets to ensure transparency and prevent double counting and greenwashing.

  • Overall observations

    COP28’s “UAE Consensus” marked the Paris Agreement’s shift to full-scale implementation and oversight, linking the GST with energy transition, adaptation frameworks, and finance mechanisms. The first inclusion of “phasing out fossil fuels” signaled a turning point in global energy restructuring. For Taiwan, these developments provide crucial alignment points for carbon market engagement, climate finance flows, and just transition strategies. These may be important references to Taiwan’s efforts in international action, enhancing global cooperation and exchange under Article 6 mechanisms to advance net zero and sustainability goals.

The landmark outcome of COP27 was the decision to establish the Loss and Damage Fund, signaling the transition of the issue from concept to operational finance. The creation of a Transitional Committee was agreed to propose funding sources, governance framework, and allocation principles before COP28 in 2023. The Santiago Network was also activated to provide technical support and capacity-building for vulnerable Parties confronting climate change impacts.

The Glasgow-Sharm el-Sheikh Work Programme (GlaSS) was established in COP26, and the GGA process was also launched to balance endeavors between adaptation and mitigation. Parties agreed to propose specific methodologies and evaluational frameworks before COP28 for further collective progress assessment under the first Global Stocktake (GST). The Adaptation Fund received US$230 million in new investments, with a goal of reaching US$40 billion by 2025, while the functions of Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF) were strengthened to support vulnerable and island countries’ adaptation actions.

Responding to the IPCC 6th Assessment Report (IPCC AR6), the Mitigation Work Programme was adopted in COP27, pursuing stronger pre-2030 mitigation actions and assessing progresses through convening biannual Global Dialogues. The MWP covers energy transition, governance management of non-CO₂ greenhouse gases (such as methane), just transition, and cross-sectoral cooperation, which emphasizing in voluntary basis, non-punitive principles, in light of different national circumstances. Parties were urged to update existing NDCs by the end of 2023 to enhance efforts toward the 1.5℃ target.

Climate Finance remained a focus of negotiations. The decisions of COP27 noted that annual investments of US$4-6 trillion is required for global low-carbon economic transition and called for financial reform to redirect finance flows toward sustainable investments. It expressed serious concerns over developed countries’ unmet yearly US$100 billion pledges and decided to set up a new NCQG by 2024 to reflect needs and priorities on developing countries. Meanwhile, the G7 nations also launched the Global Shield Financing Facility to strengthen resilience in nations affected by disasters.

The COP27 negotiation conclusions under Article 6 of the Paris Agreement were including:

Regarding Article 4.10 of the Paris Agreement on Common time frames (CTF) for NDCs, it is decided that Parties are encouraged to submit updated NDCs covering the period up to 2035 by the year 2025, and to submit NDC updates concerning the 2040 targets in 2030. The CMA also decided that, starting from CMA4 in 2022, a high-level ministerial roundtable will be convened annually to discuss pre-2030 ambitions.

• Article 6.2: The negotiations of the Cooperation Approaches are decided to complete guidance on tracking and reporting, expert review, and templates of the Initial Report.
• Article 6.4: The negotiations of the Paris Agreement Crediting Mechanism (PACM) are decided to confirm operational rules for the Supervisory Body of the A6.4M, while the rules of removal activities and A6.4M registry will be decided before COP28.
• Article 6.8: The negotiations of the Non-Market Approaches (NMA) are decided to launch of the 2023-2024 working program for establishing the NMA platform to promote practical experiences sharing.

In response to the UN secretary-general’s call, during the COP27, main stakeholders also echoed to strengthen anti-greenwashing principles, setting five net zero pledge criteria that require corporations and countries to disclose transparent, verifiable mitigation actions and avoid nominal declarations. Meanwhile, the US launched the Energy Transition Accelerator (ETA) as a new public-private cooperation mechanism to facilitate renewable energy investment in developing countries.

Under demands on Article 14 of the Paris Agreement, the GST is to be conducted every five years to assess collective progress. The first GST began in COP26 and advanced to its second-phase technical dialogue in COP27, focusing on mitigation, adaptation, loss and damage, finance, and capacity-building. Final outcomes were scheduled for publication in COP28 in 2023 to inform Parties for their consideration of 2025 NDC updates.

The COP27 outcomes of the Sharm el-Sheikh Implementation Plan marked the Paris Agreement’s transition into a full implementation phase. Institutionalizing Loss and Damage signified a markable outcome that the UNFCCC progress turn from endless negotiation to action. The greening of financial systems and rise of anti-greenwashing standards highlight a new phase of climate governance emphasizing transparency, accountability, and just transition. These achievement provide significant governance directions in future to strengthen green finance frameworks, carbon market integration, and international cooperation planning for adopting mitigation and adaptation strategies evenly in promoting net zero transition and sustainable development in Taiwan.

The pact emphasized the expansion of actions and support, including finance, capacity-building, and technology transfer, to enhance adaptive capacity, strengthen resilience, and reduce vulnerability to climate change, taking into account the best available science and national development priorities. In terms of adaptation communications, parties were required to submit their communications before CMA4 in 2022. Meanwhile, to understand the global adaptation goal and its importance, a two-year “Glasgow-Sharm el-Sheikh Work Programme” was to be established.

In terms of adaptation finance, the pact welcomed commitments by major developed country parties and strengthened the functions of the Adaptation Fund and the Least Developed Countries Fund. It called on multilateral development banks to leverage climate finance to drive private sector investment and encourage innovative methods and tools. Developed country parties were also urged to double their 2019 levels of adaptation finance by 2025.

The pact reiterated the long-term global goal of limiting temperature rise below 2°C above pre-industrial levels and pursuing efforts toward 1.5°C, which would significantly reduce impacts brought on by climate change. To achieve the 1.5°C goal, rapid, deep, and sustained global reductions are required. A 45% reduction must be made from 2010 levels by 2030 so that net zero can emissions be achieved by around mid-century. Actions should be based on the best available science and equity, recognizing common but differentiated responsibilities, respective capabilities, sustainable development, and poverty eradication.

Parties were welcomed and encouraged to submit new or updated NDCs and submit long-term strategies (LTS) or other actions to contribute to the Paris Agreement’s temperature goals and progress. With the completion of the Paris Agreement Work Programme rulebook, a new work program would be established to accelerate and scale up mitigation action between 2021 and 2030.

To enhance global greenhouse gas reduction, countries were urged to target non-CO₂ gases such as methane by 2030 and to develop, deploy, and promote technologies and policies for the low-emission energy system transition, including by accelerating clean energy power generation, improving energy efficiency, phasing down coal, and eliminating inefficient fossil fuel subsidies to enable a just transition.

Developed country parties were urged to support developing countries in strengthening mitigation and adaptation efforts through finance, technology transfer, and capacity-building. The decision recognized that the COVID-19 pandemic had increased developing countries’ need for such support. Building on the Paris Agreement, developed countries were expected to collectively mobilize US$100 billion per year in climate finance by 2025 (a goal originally set for 2020). The “Climate Finance Delivery Plan: Meeting the US$100 Billion Goal” would be promoted, and financial entities, multilateral development banks, and institutions were urged to scale up investments in mitigation and adaptation actions (Paris Agreement Article 9.5), including technology development and transfer for various mitigation and adaptation actions, thereby fostering an environment beneficial to innovation and providing predictable and sustainable finance. In terms of capacity-building, the pact welcomed the “COP26 Catalyst for Climate Action” for its commitments and efforts in this area.

Acknowledging that climate change was already causing and increasing loss and damage from both extreme and slow-onset events that would lead to even bigger threats to society, the economy, and environment, the pact sought to enhance the role of financial entities, UN organizations and funds, bilateral and multilateral bodies, and the private sector in supporting loss and damage-related activities. The “Santiago Network” would facilitate cooperation and coordination among institutions.

Many parties had submitted updated or second NDCs, increasing their reduction ambition for 2030. Parties that had not yet done so were strongly urged to submit updated NDCs by 2022 (under Articles 3, 4.3, 4.4, 4.5, and 4.11 of the Paris Agreement). The Secretariat was to annually review and update its synthesis of NDCs. At COP28 in 2023, another global leaders’ summit was expected be held to further strengthen mitigation ambition. All efforts should ensure a just transition, promote sustainable development, eradicate poverty, and create decent jobs. Under Article 4.19 of the Paris Agreement, a synthesis report on long-term strategies would be prepared before CMA4 in 2022 to assess parties’ long-term ambition.

In regards to Article 4.10 on Common Time Frames, parties would be encouraged to submit updated NDCs covering up to 2035 by 2025, and new NDCs in 2030 covering up to 2040. CMA also decided to hold annual high-level ministerial roundtables from CMA4 onward to discuss pre-2030 ambition.

In terms of transparency, consensus was reached on the formats and principles for electronic reporting tables under Article 13 (Enhanced Transparency Framework). The rulebooks for the public registries of NDCs (Article 4.12) and adaptation communications (Article 7.12) were also completed.

Under Article 6, the framework for “cooperative approaches” (Article 6.2) would allow participating parties to generate “Internationally Transferred Mitigation Outcomes (ITMOs)” through verified and certified bilateral or multilateral cooperation. Article 6.4 established the “Sustainable Development Mechanism (SDM)” for cross-border reduction projects between parties would that generate A6.4ER credits, which, once first transferred to a host country’s registry, could be converted to ITMOs for international trading. According to the design of the Article 6 mechanism, once the emission reduction activities under a country’s NDC have been completed and the resulting ITMOs or transferred A6.4ERs (i.e., converted into ITMOs) have been certified, they may be recorded in the Article 6 Database. Subsequently, a “corresponding adjustment” to the national emissions inventory can be made, registering the units for “other international mitigation purposes,” transferring them to another country’s national registry or deducting them, without causing double counting, thereby ensuring compliance with transparency requirements. Both Article 6.2 and 6.4 would operate under centralized oversight for registration and accounting, meaning the registration and deduction records of relevant credits must go through the database to prevent double counting. Article 6.8, on non-market approaches, established the “Glasgow Committee on Non-Market Approaches (Glasgow NMA Committee)” to identify relevant NMA activities such as clean energy technology development, mitigation measures focusing on climate change and accelerated sustainable development, standard setting, capacity-building, financial assistance, and adaptation projects.

The “Marrakech Partnership for Global Climate Action” would continue to enhance ambition and coordination among high-level champions, strengthening the role of non-state actors in climate action platforms. Meanwhile, immediate implementation of the “Glasgow Work Programme on Action for Climate Empowerment” was required to promote human rights and gender equality-related issues. For local communities and Indigenous Peoples, a three-year work plan (2022-2024) would be carried out under their platform.