COP28 Statement
COP28 agreement signals ‘beginning of the end’ for fossil fuels, falls short of decisive climate action
The United Nations Climate Change conference, COP28, concluded in Dubai last month with a first-day agreement to transition away from fossil fuels, triple renewable energy and increase climate finance for vulnerable nations facing the worst impacts of climate change.
Billed as the most significant set of decisions since the 2015 Paris Agreement, COP28 concluded with wins and disappointments, eliciting mixed feelings from experts across the globe. Celebrated in some quarters as the end of the fossil fuel era, the COP28 formal decision falls short of delivering the decisive climate change action that science says is urgently needed to limit long-term global average temperature to 1.5˚C above the pre-industrial era.
With Sultan Ahmed Al Jaber, head of the Abu Dhabi National Oil Company, announced as COP28 president earlier this year, from the outset the conference was plagued with allegations of a possible conflict of interest and secret oil-and-gas deal allegations investigated by The Guardian and BBC.
Further emphasising the perceived conflict of interest, Al Jaber said in his opening speech, ‘We must look for ways, and ensure, the inclusion of the role of fossil fuels.’
Loss and Damage
Climate finance took center stage at the conference, with UN Executive Secretary, Framework Convention on Climate Change, Simon Stiell, calling increased financing the ‘great enabler of climate action.’
The two-week-long conference got underway with the World Climate Action Summit, which brought together 154 Heads of States and Government. Parties reached an agreement on the operationalisation of the Loss and Damage fund, initially to be managed by the World Bank, with a geographically diverse board to be established. Commitments to the fund which started coming in moments after the decision, now total more than USD 792 million to date.
‘Loss and Damage’ describes the harm caused by climate disasters, and dangerous extreme weather that is leading to massive environmental, economic and societal upheaval. The fund remains contentious, however, as unlike other forms of climate finance there is no obligation for wealthy nations to pay into the fund, and pledges will depend on the generosity of developed countries.
Global Stocktake
Considered the central outcome of the conference, the Global Stocktake refers to an assessment of how much progress countries are making toward meeting the Paris Agreement targets. Ultimately, the COP ‘called on all countries to contribute to’ a list of goals, including ‘transitioning away from fossil fuels … accelerating action in this critical decade.’ While the outcome fell short of the full ‘phase out’ the science shows is needed to stay below 1.5C, this is the first time a COP decision has explicitly called out fossil fuels.
Adaptation
Some progress was seen in terms of climate change Adaptation, as delegates agreed on targets for the Global Goal on Adaptation (GGA) and its framework, foregrounding resilience to the impacts of climate change and to assess countries’ efforts towards these goals. The GGA framework reflects a global consensus on adaptation targets and the need for financing and technological support to achieve them.
Increasing climate finance
The Green Climate Fund (GCF) received a boost at COP28 with total pledges of USD 12.8 billion from 31 countries, with further contributions expected. However as highlighted in the Global Stocktake, the funding is short of the trillions that will be needed to support developing countries and vulnerable communities.
‘Whilst we didn’t turn the page on the fossil fuel era in Dubai, this outcome is the beginning of the end,’ said Stiell in his closing speech. ‘Now all governments and businesses need to turn these pledges into real-economy outcomes, without delay.’
Looking ahead
Other key moments from COP28 include a pledge from 130 countries to triple renewables and double energy efficiency improvements. Launched by EU president Ursula von der Leyen, the commitment sets a target to double the rate of global energy-efficiency improvements, from around 2% to 4% per year, by 2030.
‘We must get on with the job of putting the Paris Agreement fully to work,’ said Stiell. ‘In early 2025, countries must deliver new nationally determined contributions. Every single commitment – on finance, adaptation, and mitigation – must bring us in line with a 1.5-degree world.’
ELM Founder and Portfolio Manager Jai Mirchandani said ‘As highlighted in the Global Stocktake at COP28, implementing national climate plans, boosting adaptation efforts and supporting clean energy transitions are crucial in addressing the climate crisis. At this critical moment, we seek to invest in companies making a positive impact and support their sustainable business operations. Our goal is to help steer the world towards a more sustainable future by investing in companies that are facilitating the transition toward decarbonised economies.’
Against the urgency of the global threat of climate change, during the hottest year on record, small gestures are not enough where giant leaps are needed to accelerate the transition to decarbonised economies. For a more credible outcome to next year’s COP29 in Azerbaijan, leaders must fully commit to the phase out of all fossil fuels.
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