COP28: Final negotiations continued

The COP28 summit concluded in Dubai, United Arab Emirates, extending into Wednesday morning instead of the initially planned Tuesday finish. Wednesday, 13 December, marked the end of nearly two weeks of continuous discussions addressing significant environmental issues. Notably, this year’s conference is the first time where there was a Global Stocktake, which is a review of each nations’ progress to reducing GHG emissions and meeting the goals of the Paris Agreement.

Overview of COP28

In a historic move marking the first of its kind in nearly three decades of global climate discussions, diplomats representing almost 200 countries have unanimously approved a comprehensive pact at COP28 dubbed as the UAE Consensus. This groundbreaking agreement explicitly advocates for the "transitioning away from fossil fuels," including oil, gas, and coal, which pose significant threats by contributing to the planet's escalating temperatures. Many leaders and nations pressed for language endorsing a complete "phaseout" of fossil fuels. However, this proposal encountered staunch opposition from a number of countries.

Ultimately, there was a compromise: The newly adopted UAE Consensus urges countries to expedite a global shift away from fossil fuels throughout this decade in a manner that is "just, orderly, and equitable." The agreement sets the ambitious goal of striving for a net-zero path by 2050 to keep the 1.5°C goal under the Paris Agreement within grasp. Furthermore, it also introduces a target to triple renewables and double energy efficiency by 2030.

The overall sentiment is that reaching an agreement on transitioning away from fossil fuels is a notable achievement. However, there is a widespread acknowledgment that the text of the agreement contains certain loopholes related to adaptation, cleantech, carbon markets, and finance. On this, COP28 President Al Jaber said “an agreement is only as good as its implementation. This historic consensus is only the beginning of the road.”

Other highlights from COP28

1. The establishment of the loss and damage fund, designed to aid climate-vulnerable developing nations, took place on the inaugural day of the COP. Countries have collectively committed in excess of $700  million to support the fund.

2. In total $83 billion of public and private capital has be mobilized for climate finance, including:

a. pledges totaling $3.5 billion have been made to replenish the resources of the Green Climate Fund

b. New announcements have been made, amounting to over $150 million, to contribute to the Least Developed Countries Fund (LDC) and the Special Climate Change Fund (SCCF)

c. The World Bank has committed to an annual increase of $9 billion to finance climate-related projects in 2024 and 2025

d. the UAE announced the creation of ALTÉRRA, a $30 billion fund focused on climate investment in the global south. Partners in ALTÉRRA include Blackrock, Brookfield, and TPG, and the fund is seeking to raise up to $250 billion for climate solution by the end of the decade.

3. The COP28 UAE Climate and Health Declaration, aimed at accelerating actions to safeguard people's health from mounting climate impacts, has garnered support from nearly 120 countries.