The impact of COP29

The 29th Conference of the Parties to the United Nations Framework Convention on Climate Change took place in November 2024 in Baku, Azerbaijan, lasting two weeks. More than 56,000 attendees, including government representatives, climate scientists and representatives from the private sector, gathered to discuss international collaboration on addressing climate change. Key developments at COP29 This year at COP, we saw positive progress towards a greener built environment. Buildings were formally recognised in the collectively agreed text at COP for the first time, marking a significant milestone for the sector in climate negotiations. The importance of reducing operational emissions, improving energy efficiency, reducing embodied carbon, electrification of buildings including switching to clean and low-emission technologies, and encouraging collaboration was noted. Alongside broader developments that will have follow-on impacts on our sector, this milestone was accompanied with numerous sector-specific updates, including new commitments, international collaboration forums and showcasing of private sector momentum, demonstrating a cause for optimism for climate action in our sector globally. Growing on the momentum from the Buildings and Climate Global Forum in Paris in April 2024 and the Declaration de Chaillot, where more than 60 nations committed to climate-aligned building practices, COP29 saw the establishment of the Intergovernmental Council on Buildings and Climate. The council will be a platform for fostering greater international co-operation on these initiatives. Organisations responsible for delivering progress on the Buildings Breakthrough – a global commitment to near-zero emission and resilient buildings by 2030 – also shared advancement updates at COP across the priority actions of standards and certifications, demand creation, finance and investment, research and deployment, and capacity and skills. Further collaborative efforts were made in COP29’s host country of Azerbaijan, with the launch of the Sustainable Built Environment Blueprint. Building on the success of a similar initiative in the UAE around COP28, this blueprint aims to stimulate regional decarbonisation action by bringing together local developers and government stakeholders to unlock climate action through public-private collaboration. Climate finance was a primary focal point of discussions throughout the conference. A new collective goal committed developed countries to provide $300bn (£244bn) annually by 2035 to developing countries. This also includes up-scaling finance from public and private sources to $1.3tn annually by 2035. We anticipate to see this commitment impacting funding for real estate projects. Nationally determined contributions – country-specific climate action plans submitted to the UNFCCC every five years – were also high on the agenda. With NDC updates due in February, numerous NGOs provided guidance to ensure plans are ambitious, investible and sector-specific, while the UAE’s NDC set a global benchmark with a target of reducing emissions in the buildings sector by 79%. The importance of advocacy JLL plays a key role in leading the built environment agenda at COP through our partnership with the Climate Champions Team, supporting the UN Climate Change High-Level Champions since 2020. JLL seconds two staff annually to work alongside the Climate Champions in the capacity of senior adviser and associate for the built environment, in a highly collaborative effort with Arup. Their year-round efforts focus on raising ambition among cities, regions, businesses and investors, empowering governments to take more decisive climate action. In support of the climate finance theme, JLL attended COP to advocate for the commercial case for a green transition. The business rationale for enhancing building sustainability and resilience is growing stronger, as it can yield a comprehensive return on sustainability with financial, social and environmental advantages. These include reduced operating costs, safeguarded property values, avoidance of stranded assets, new revenue streams, improved tenant wellbeing and job creation. Our recent research report, Banks can save the world by unlocking climate finance, demonstrates the necessity for a fundamental shift in climate finance deployment to mobilise investment into decarbonising buildings at scale while creating economic benefits. Although we possess many of the elements required to deliver low-carbon and climate-resilient buildings – commitments, tools, technology, expertise and regulatory frameworks – the crucial missing link remains how to finance the transition. Progress and future outlook Despite mixed reviews, COP29 demonstrated tangible progress towards the Paris Agreement goals for our sector. Amid global challenges and political change, developments continued to move the international green agenda forward. Private sector leadership in the green transition continues to be evident, which is often able to outpace national governments in implementation. Conversations have notably shifted from setting ambitions to planning how to scale up and deploy solutions. This momentum must be sustained through increased consensus-building and collaboration. It is crucial that we transform commitments into action, focus on implementation and unlock finance to ensure buildings contribute to a sustainable, equitable and low-carbon future. The way forward involves radical collaboration across supply chains, addressing the green skills gap and regionalising solutions to enable a just, prosperous and resilient green transition. Celine Harborne is a sustainability consultant at JLL and a built environment associate on the Climate Champions Team Photo by ANATOLY MALTSEV/EPA-EFE/Shutterstock (14896384v)