A Year in Review
Sustainability Highlights of 2024
Tempo di lettura: 4 min
🖊️Gabriella Pinto
Dec 2024
Climate change remained a critical issue throughout 2024, despite increasing global efforts to mitigate its effects. According to the Intergovernmental Panel on Climate Change (IPCC) CO2 emissions will continue to rise and we are on track for a 3.2 increase in temperature by 2030 if all the countries who have signed the Paris Agreement will have a Nationally Determined Contribution (NDCs).Â
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The year witnessed devastating climate events, including catastrophic floods in South Asia, prolonged droughts in the Horn of Africa, and widespread wildfires in Canada and Southern Europe. These disasters highlighted the tangible and escalating impacts of climate change across the globe. Consequently, climate change remained at the forefront of political and regulatory discussions.Â
In addition, 2024 saw a growing focus on broader sustainability issues, such as biodiversity loss, sustainable fashion, and the integration of technology and sustainability—a trend amplified by advancements in artificial intelligence. Social sustainability also gained attention, with significant discussions around gender equality, LGBTQ+ rights, and the pivotal role of Indigenous communities in conservation, spurred by key events on islands worldwide.
Major Developments in Climate Action
Key milestones in climate action were achieved in 2024, with international efforts focusing on reducing reliance on fossil fuels and enhancing climate finance. The G7 nations agreed to phase out coal by 2035 and accelerate the use of renewable energy, marking a significant shift in global energy policies. The G20 summit in Rio emphasized global commitments to sustainable development, including poverty reduction and biodiversity protection, though it fell short of concrete financial pledges for developing nations.
The COP29 summit in Baku was a pivotal moment for international climate cooperation. Countries reaffirmed commitments to the Paris Agreement and advanced carbon credit trading rules under Article 6.4, aimed at funding low-emission technologies in developing nations. Wealthy countries promised to provide $300 billion per year by 2035 to help fight climate change. While this is a step forward, it’s still far less than the $1.3 trillion experts say is needed to deal with global climate problems.Â
Younger generations played a pivotal role in advocating for change. At the Y7 Summit, young leaders urged G7 nations to prioritize their voices in shaping a sustainable future. They emphasized the urgency of taking immediate action, including halting investments in oil and gas sectors, redirecting funds to low-carbon energy solutions, implementing carbon markets and corporate taxes, and embedding environmental standards into public budgeting. The G7 was also called upon to enhance international collaboration on water preservation, eliminate toxic chemicals, enforce sustainable supply chains, and promote biodiversity. Furthermore, G7 countries must accelerate the transition to net-zero emissions by ending fossil fuel subsidies, phasing out coal, supporting renewable energy in developing countries, and investing in green job training and sustainable technologies.
The Importance of the Finance Sector
In 2024, the finance sector became a major force in addressing climate change, as highlighted at COP29. World leaders agreed that much more capital is needed to fight climate change and reach global sustainability goals, including those set by the EU Green Deal.
One announcement was that high income countries promised to provide $300 billion each year by 2035 to help reduce greenhouse gas emissions and adapt to climate challenges. However, government funding alone is not enough. This is where private companies and investors, such as banks and pension funds, play a crucial role by providing additional money.
To encourage private investment in riskier climate projects, COP29 introduced ideas like blended finance. This means combining public money (from governments) with private money to make investments less risky. For example, if public money covers some of the risks, private investors might feel more confident to join in.
This approach is especially important for new companies working on climate solutions, like clean energy technologies. These companies often need a lot of money to grow but struggle to get it because their projects can be expensive and uncertain. For example, they might need to build new types of power grids or test unproven technology. Public funding helps reduce the risks for these projects, making it easier for private investors to contribute.
Looking ahead to COP30, the focus will be on using these tools to direct money toward important climate projects, especially in poorer countries where the effects of climate change are the most severe. The finance sector will play a key role in deciding how quickly we can fight climate change and move toward a greener future.
Geopolitical Dynamics and Sustainability
Geopolitical tensions heavily influenced sustainability efforts in 2024, as disputes over climate finance between high-income and developing nations underscored persistent inequalities in global climate strategies. Many developing nations criticized the slow pace of financial aid and technology transfers, despite repeated pledges by wealthier countries to close the funding gap.
The U.S. presidential election added to the uncertainty, with the election of a climate-skeptic president raising fears of policy reversals, including a potential withdrawal from the Paris Agreement and increased reliance on fossil fuels. However, state-level initiatives such as Vermont’s groundbreaking Climate Superfund Act set a powerful precedent by holding polluters financially accountable for climate-related damages. Simultaneously, the Inflation Reduction Act continued to bolster renewable energy investments, underscoring the fragmented but ongoing progress in the United States.
Since adopting the Green Deal in 2018, the European Union has positioned itself as a global leader in the green transition. This year, significant strides have been made to solidify this leadership. The European Union implemented the Corporate Sustainability Reporting Directive (CSRD) and it was approved the Corporate Sustainability Due Diligence Directive (CSDDD). These initiatives aim to enhance accountability by ensuring companies uphold human rights and environmental standards across their operations and supply chains. They also mandate transparent reporting on sustainability practices, pushing businesses to align with global climate goals.
However, at the opening of COP29, Azerbaijan’s president sharply criticized Western nations for what he called “performative greenwashing,” pointing to inconsistencies between their climate commitments and continued reliance on fossil fuels from non-Western countries.
Meanwhile, China solidified its leadership in renewable energy production, outpacing other nations in the development and deployment of solar, wind, and battery technologies. China’s investments in clean energy were not only domestic but also global, as it expanded its Belt and Road Initiative to include more renewable energy projects in developing nations, further asserting its dominance in the global energy market. This contrasted sharply with Western efforts, which were perceived as slower and less cohesive.
Conclusion
Despite the challenges, 2024 highlighted significant progress in transitioning to a sustainable future. The rise of renewable energy, increasing climate finance commitments, and advancements in technology offer hope for a path forward. However, bold action, equitable financing, and collaboration remain crucial to addressing the challenges ahead.
