COP29, held last month in Baku, Azerbaijan, brought global leaders together to address critical climate challenges. Among the key takeaways were a focus on carbon markets, climate finance, and a push for increased financing of $300 billion (€285 billion) annually by 2035, alongside the urgent need for robust measurement, reporting, and verification (MRV) systems. The conference also highlighted agriculture’s dual role in contributing to and mitigating climate change. For businesses in the food supply chain, the outcomes of COP29 reinforce the importance of accountability and the adoption of data-driven solutions to enable real, measurable change.
Agriculture: Balancing Emissions with Solutions
Agriculture is both a major contributor to greenhouse gas emissions and a key part of the climate solution. Discussions at COP29 emphasised sustainable farming systems as vital tools for reducing emissions and restoring ecosystems. Pasture-based systems, when managed responsibly, can sequester carbon in soils and support biodiversity preservation, offering a viable alternative to fossil fuel-dependent, intensive farming methods.
A key discussion at COP29 was the need to adopt more accurate metrics to measure emissions. The Global Warming Potential Star (GWP*) model, for example, recognises the short-lived nature of methane compared to carbon dioxide, providing a better understanding of its impact. This emphasis on accurate measurement aligns with the broader COP29 focus on integrating transparent MRV systems across industries, ensuring credibility in emissions reporting.
Key Outcomes of COP29: Financing and Carbon Markets
Two significant outcomes of COP29 were pledges surrounding climate finance and the growth of carbon markets. A major commitment was to mobilise $300 billion annually in climate finance by 2035, helping nations fund sustainable practices. Increased reliance on carbon markets was also highlighted as a pathway for industries, including agriculture, to invest in verifiable emissions reductions.
Food companies must be prepared to track and demonstrate their reductions through MRV systems, ensuring credibility and compliance with evolving global standards. This includes aligning with the forthcoming international frameworks for carbon credit integrity under the Paris Agreement, where accuracy and transparency will be essential for any business claiming carbon offsets.
Meeting Regulatory and Consumer Demands
COP29 placed a strong emphasis on accountability, aligning with tightening regulations like the EU’s Green Claims Directive and anti-greenwashing measures. Businesses across the food supply chain now face increasing demands from regulators and consumers to back up their sustainability claims with verifiable data.
Consequently, these regulatory frameworks push companies to provide transparent and quantifiable metrics on carbon emissions, biodiversity impact, and supply chain efficiency. Failure to meet these standards can result in reputational damage and financial penalties, highlighting the critical need for robust measurement and reporting tools to meet evolving compliance requirements.
The Role of Data in Driving Climate Action
The overarching message from COP29 was clear: meaningful climate action is built on reliable, ground-truth data. Discussions centred on advancing carbon markets and climate finance, emphasising the need for verifiable metrics to track emissions reductions and evaluate environmental impact effectively. For example, carbon markets rely on accurate measurement, reporting, and verification (MRV) systems to ensure that investments in emissions reductions are credible and impactful.
Data-driven solutions allow companies to move beyond pledges, implement tangible changes, and validate their progress. Tools such as Senus’s MRV systems empower businesses to measure key metrics, from farm-level carbon sequestration to soil health and biodiversity improvements. These systems align with COP29’s focus on data transparency, ensuring companies can optimise operations, meet regulatory expectations, and contribute to global climate goals.
The Path Forward
Looking ahead, businesses will need to increasingly rely on these data-driven solutions to remain competitive and compliant with future regulations and voluntary sustainability goals. The food industry has a clear opportunity to lead in sustainability; transparency, accountability, and innovation will shape the sector’s response to climate challenges. With the right tools to measure, report and verify progress, such as those provided by companies like Senus, businesses can create more resilient, environmentally friendly food systems, contributing to a sustainable future for our planet. COP29 reinforced the importance of not only adopting innovative solutions like MRV systems but also positioning the food sector as a leader in climate action by effectively integrating finance, carbon markets, and regulatory compliance into their operations.
