Concerns over Azerbaijan’s oil-dependence, logistical challenges, and the looming US election are prompting businesses to scale back their presence at COP29 in Baku
The once-thriving corporate presence at the annual United Nations climate talks is set to diminish this year as businesses express concerns about COP29, scheduled for November in Azerbaijan. Companies across various sectors are either skipping the summit altogether or sending smaller delegations, wary of the event’s location, the host nation’s autocratic regime, and the possibility of Donald Trump winning the U.S. presidential election just days before the summit begins, says Politico.
This expected decline in corporate attendance marks a sharp contrast to last year’s COP28 in Dubai, where industry figures flocked to the event, eager to secure access to the summit’s prestigious “Blue Zone” and to host lavish events.
Several factors are contributing to this pullback. On a logistical level, companies are worried about securing hotel rooms and navigating access to the venue on the outskirts of Baku. Policy-wise, COP29 is anticipated to be more subdued than the Dubai summit or next year’s talks in Brazil, leading businesses to focus their attention on future events where nations will finalise climate strategies through 2035.
The potential return of Donald Trump to the White House also looms large. The prospect of a climate-sceptic U.S. president could severely disrupt the global climate agenda, casting doubt on the outcomes of COP29. “The prospect of a second Trump presidency has raised questions in boardrooms worldwide about how ambitiously corporate players might engage in the next COP,” said Kevin Book, managing director of ClearView Energy Partners.
Despite these concerns, some corporate showmanship is still expected in Baku. Big oil and gas firms, along with other companies, are likely to attend to promote their interests. The annual climate talks have become a platform for energy firms, financiers, and technology startups to vie for a slice of the expanding green market, showcasing their products and making announcements to enhance their climate credentials. However, this year’s attendance is likely to be more restrained.
Environmental groups have long criticised the corporate presence at COP for potential greenwashing and undue influence, particularly as oil-dependent Azerbaijan prepares to host. President Ilham Aliyev of Azerbaijan has openly advocated for continued investment in fossil fuels, a stance at odds with the global push towards renewable energy. Azerbaijan’s reliance on oil and gas revenues has raised concerns among companies about being associated with greenwashing.
The capacity for COP29 is also a factor. The United Nations Framework Convention on Climate Change (UNFCCC) has agreed with Azerbaijan to limit attendance to 40,000, similar to COP26 in Glasgow. The reduced capacity, along with logistical challenges, has made this year’s summit less appealing to some businesses.
Another critical issue is the proximity of COP29 to the U.S. presidential election. Many companies fear that the election results could overshadow their planned announcements. As a result, businesses are shifting their climate-related events to other forums, such as New York City Climate Week in September, which coincides with the U.N. General Assembly, and the U.N. biodiversity conference, COP16, in Colombia in October.
Dan Byers, vice president for policy at the U.S. Chamber of Commerce’s Global Energy Institute, noted that corporate America is more focused on these alternative events. “This COP is so uncertain, especially with our election,” Byers said, explaining the decision of many companies to redirect their efforts.
The Climate Group, which organises New York City Climate Week, has reported a surge in applications for speaker slots, reflecting the shift in corporate focus. “We’re seeing an increase in seniority and prestige among speakers,” said Rik Goverde, the group’s director of corporate communications.
However, scepticism about Azerbaijan’s ability to host a quality conference remains. Brazil, which is preparing for COP30 in 2025, is already lending a hand, underscoring doubts about Azerbaijan’s capacity. The country’s heavy dependence on fossil fuels and President Aliyev’s statements in support of continued oil and gas investments have further deterred companies.
Logistical concerns have also played a role. The lack of direct flights to Baku and the city’s less appealing tourism prospects have made it less attractive to U.S. companies. These issues were highlighted during a June meeting hosted by the U.S. Chamber of Commerce. Ogtay Mammadov, a coordinating board member of the COP29 organising team, attempted to reassure business leaders about the event’s logistics. However, doubts persist.
As COP29 approaches, it is clear that businesses are approaching the summit with caution, balancing the risks associated with Azerbaijan and the potential global impact of the U.S. election. The outcome of COP29 remains uncertain as companies weigh the benefits of participation against the significant challenges posed by this year’s event.