From Targets to Action: How COP29 Sets the Stage for #CTS2025

Despite mixed reactions to the outcomes of COP29, one message came through loud and clear: successful decarbonization requires cooperative solutions, shared ambition, and transparent, industry-wide standards. As we look ahead to the Climate Transformation Summit 2025 (#CTS2025), we are committed to moving beyond data collection and towards building climate-smart supply chains together - because real progress can only be achieved through collective action.

Read this article to get a breakdown of what the COP29 outcomes mean for European businesses and how #CTS2025 will bring together 100+ thought leaders, companies, and policy-makers to navigate the post-COP29 landscape and transition from targets to action.

COP29 Key Outcomes and Implications for European Companies

COP29 in Baku concluded amidst a challenging geopolitical backdrop. Despite limited breakthroughs, the results provide both challenges and opportunities for European companies. The focus on climate finance, carbon trading rules, and emission reductions shapes a new landscape for corporate engagement and responsibility. Here’s a breakdown of what the outcomes mean for European businesses:

1. Financial Commitments and the Role of the Private Sector

Key Outcome:
The conference set a new collective climate finance goal of at least $300 billion annually from developed nations by 2035, contributing to a broader target of $1.3 trillion per year. This funding is intended to address climate protection, adaptation, as well as loss and damage.

Implications for European Companies:

Increased Participation in Climate Financing: Businesses will likely face new incentives or mandates to contribute through taxes, levies on fossil fuels, or private-sector investment in climate projects.
Opportunities for Innovation and Investment: Companies engaged in clean energy, carbon capture, and sustainable supply chains can benefit from this shift as global demand for low-carbon solutions grows.
Pressure to Integrate ESG Goals: Firms with transparent and proactive environmental strategies may gain access to new financing streams or partnerships with development banks.

2. Advances in Carbon Trading Rules

Key Outcome:
Negotiations on Article 6 of the Paris Agreement concluded, providing a clearer framework for international carbon trading. This opens the door to globally regulated carbon markets, enhancing trust and scalability.

Implications for European Businesses:

Efficient Compliance: Companies can now integrate international carbon credits into their emissions reduction strategies, creating cost efficiencies in achieving net-zero targets.
Revenue Potential: Participation in carbon trading systems like the EU Emissions Trading System (EU ETS) now aligns more closely with global mechanisms, enabling European businesses to monetize surplus carbon reductions.
Competitive Advantage: Early adoption of robust carbon trading practices positions companies as leaders in this evolving market.

Source: Carbon Streaming: How an Emissions Trading System Works

3. Momentum for Emission Reduction and Clean Energy

Key Outcome:
Despite geopolitical challenges, COP29 reinforced commitments to the Global Stocktake (GST) goals, including scaling renewable energy, doubling energy efficiency, and transitioning from fossil fuels.

Implications for European Businesses:

Leadership in Renewables: With renewable energy capacity growth surging by 50% in 2023, European firms at the forefront of clean energy technologies are well-placed to meet global demand.
Policy Alignment: Stricter emissions targets in updated Nationally Determined Contributions (NDCs), such as the UK’s 81% cut by 2035, demand proactive compliance and innovation.
Supply Chain Transformation: The emphasis on Scope 3 emissions highlights the importance of decarbonizing supply chains. Collaboration with suppliers in emerging markets will be crucial.

Source: Annual electricity Data, Ember (other renewables include bioenergy and hdydro)

4. Innovation in Hard-to-Abate Sectors

Key Outcome:
Heavy industries, responsible for a third of global emissions, saw progress in green hydrogen and decarbonization technologies. Total investments in clean hydrogen have grown sevenfold since 2020, reaching $75 billion.

Implications for European Businesses:

Accelerating Adoption: Companies in energy-intensive sectors must prioritize the transition to green hydrogen and other emerging technologies.
Digital Tools: AI-driven platforms for carbon tracking and climate action, as discussed during COP29, can optimize corporate decarbonization efforts.
Collaborative Research: Partnerships with academia and industry coalitions can drive breakthroughs in decarbonization solutions.

5. Finance and Supply Chain Resilience

Key Outcome:
Discussions highlighted the growing risks of climate change to food security and supply chains, emphasizing the need for adaptation investments.

Implications for European Businesses:

Supplier Sustainability: Businesses reliant on imports from vulnerable regions must prioritize sustainable sourcing to mitigate risks.
Investment in Resilience: Supporting climate adaptation among suppliers strengthens value chains and aligns with broader corporate climate goals.
Capitalizing on Opportunities: Climate-related disruptions also open markets for innovative supply chain solutions and climate-resilient infrastructure.

Key Takeaways for European Companies

Lead on Climate Action: European businesses are well-positioned to meet the rising demand for sustainable products and services. This is the time to develop integrated transition plans that align corporate strategies with climate goals, regulation, and stakeholder expectations.
Adapt to Financing Shifts: Companies will need to integrate climate goals into their financial strategies to accelerate emission reduction, integrate digital decarbonization tools, and attract investments from banks and customers alike.
Strengthen Global Partnerships: Building resilient supply chains and fostering international collaboration will help firms navigate the increasingly interconnected impacts of climate change.

While COP29 showcased slow progress, it reinforced the momentum toward a decarbonized economy. European companies have a critical role to play—not just as participants but as leaders driving transformative climate solutions ahead of COP30 in Brazil.

#CTS2025: Moving from Targets to Action

2025 marks the midpoint to the UN 2030 Agenda and the Paris Climate Agreement, making it more urgent than ever to transition from targets to action.

To further these discussions and accelerate progress, the Climate Transformation Summit 2025 (#CTS2025) will bring together 100+ thought leaders, companies, and policy-makers to navigate and shape the post-COP29 landscape for European companies. Under the theme of “5 Years to Deliver: From Targets to Actions,” #CTS2025 will focus on climate transition planning and scalable supplier engagement for Scope 3 impact - recognizing that successful decarbonization demands shared ambitions, cooperative solutions, and inclusive frameworks. This is our invitation: Let’s jointly move beyond data to build climate-smart supply chains.

Join us to explore practical, replicable solutions, form impactful partnerships, and shape the future of Scope 3 climate action. Continuing the journey from Baku, #CTS2025 is your chance to be part of the next big step.

Don't miss out - secure your Christmas Special Ticket now and join us in Berlin on June 4th and 5th to help shape a sustainable future. Find out more and apply today!