COP28: Energy and Industry, Just Transition and Indigenous Peoples

Recognition of hydrogen schemes, clean cooking and the cooling pledge were among some of the key takeaways from Day 6 of COP28. A just transition remains at the centre of these conversations.

Rising global temperatures mean that more of us than ever are relying on cooling systems such as air-conditioners (ACs) and refrigerators to cool our food, buildings and vaccines. These technologies also consume a huge amount of energy and emit climate-warming gases.

Cooling is estimated to be responsible for over seven percent of the global greenhouse gas emissions, according to a report published by the UN Environment Programme. The first ever Global Cooling Watch Report indicates that the cooling demand could triple by 2050 which would lead to a doubling of greenhouse gas emissions.

On Tuesday, over 60 countries signed up to the cooling pledge to help tackle this important issue and agreed to reduce their cooling-related emissions by at least 68 percent by 2050.

The Global Cooling Pledge aims to promote the passive cooling dubbed “smart building” by the United Nations Environment Program Executive Director Inger Andersen, which includes insulation, natural shading, ventilation and reflective surfaces. The Pledge also encourages higher energy efficiency standards and a phase down of climate-warming hydrofluorocarbon (HFC) refrigerants.

31 partners, including 25 global utilities and power companies which serve collectively more than 250 million customers, have joined to advance electrification, renewables-ready grids and clean energy deployment in line with the goal of net zero by 2050. The alliance aims to use IRENA’s World Energy Transitions Outlook as a pathway moving forward which includes tripling renewable power capacity by 2030.

The focus of the alliance is to promote the adoption of renewable energy and enable the flow of finance to the power sector transformation in the global south. EDF, National Grid, RWE and Siemens are some of the members of the alliance.

UNEZA aims to develop plans to mitigation energy transition challenges including capital mobilisation, supply chain de-risking, capabilities and talent building and facilitating policy and regulatory support.

A mutual recognition of hydrogen certification scheme was launched at COP28 with the Hydrogen Declaration of Intent. The declaration was signed by more than 30 countries with a goal of boosting the production and trade of low-carbon fuel. Under the Declaration, the states have agreed to endorse a global certification standard for hydrogen and acknowledge existing certification schemes.

Hydrogen which can be produced from natural gas and renewable energy is anticipated to be a vital future fuel with its ability to efficiently store energy. Hydrogen can be more expensive than natural gas due to a lack of production and supply constraints. Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, at the hydrogen roundtable highlighted this issue: “The consumer is going to be the judge of how good a work we are doing in helping to ensure that it’s affordable. If it's not affordable, no matter what we do, it's not going to have the success that we aspire for.”

COP28 has seen the announcement of several hydrogen agreements, with Abu Dhabi’s clean energy company Masdar and Spain’s Iberdrola signing a $16.25 billion partnership to evaluate the development of offshore wind and green hydrogen projects in key markets such as the UK, US and Germany. Masdar has also signed a joint development agreement with Jordan to develop a 1-gigawatt wind project with battery storage and an agreement to explore the feasibility of establishing a green hydrogen plant.

A stocktake is required under the Paris Agreement to identify gaps in emission reduction targets. The first Global Stocktake High-Level committee published three key areas of focus moving forward:

1. There is an urgent need to mitigate greenhouse gas emission use and move toward to net zero;

2. The pressing need to enhance and strengthen the adaption and increase the capacity and resource of developing countries, including those countries that are most vulnerable;

3. Increase global finance flows especially in developing countries, acknowledging that capability building and technology development and transfer is vital to innovation.

The UK and Canada have led the Powering Past Coal Alliance (PPCA) since 2017 and at COP28, Malta, the UAE and the US have joined. The PPCA now has 59 countries has members which represents over a quarter of the world’s governments.

Announcing the UAE’s new membership of the Alliance, the Chief Executive Officer of COP 28 UAE, HE Adnan Amin reflected that PPCA is vital if the 1.5 degrees is “our North Star”.

The PPCA reflects a commitment to phase out existing unabated coal power plants and to avoid developing new facilities.

In short, the just transition is the concept that no one should be left behind as the world transitions to net zero and the most vulnerable communities, indigenous peoples and workers should be supported during the transition. The burdens and benefits of a transition to net zero should not disproportionately affect the poorest in society and there should be protection for low-income earners and workers that are directly affected by the decline of fossil fuel production.

Ina Parvanova, Director of Communications and Engagement at UN Climate Change highlighted on Tuesday that a just transition and promotion of gender equality are “intrinsically linked” by offering women equal employment opportunities in affected and emerging labour markets created by clean energy and new technologies.

It was acknowledged that more needed to be done to ensure female voices are part of the transition conversation and are able to help shape the green economy.

COP28 has seen an emphasis on clean cooking on the climate action agenda, encouraging electrification for those developing countries where clean cooking is simply not possible. People in such countries are forced to rely on solid fuels such as wood and charcoal to cook which leads to significant indoor air pollution and associated health issues. The Second Lady of Ghana, Her Excellency Mrs Samira Bawumia, said that clean cooking saves lives and in Ghana, eight out of ten people cook with solid fuels. The issue of clean cooking also disproportionately affects women.

The Global Electric Cooking Coalition announced a goal to accelerate electrical cooking in developing countries to elevate access to affordable and reliable access to electrical cooking in order to combat the above issues.

BOGA, which was established at COP26 in Glasgow welcomed Spain, Kenya and Samoa as members. The Alliance pledges to phase out domestic oil and gas production and has doubled in size since COP36 and now 24 national and regional countries are members or “friends” including France, Sweden, Wales and Ireland.

BOGA announced £1m grants to members Kenya and Colombia to enable the counties to achieve a just, managed, and orderly transition from oil and gas dependency. These are the first grants to be handed out by the $10 million dollar seed fund launched by the Alliance.

COP28 is an important stepping stone in our path to net zero, with the first Global Stocktake since the Paris Agreement taking place. In a COP that is focussed on a ‘just transition’, it is great to see the output of this Committee focussing on adoption by developing countries and the vital nature of increasing finance globally. This has been a key demand for some time now, but there is real momentum to ensure that this impacts all countries – the alliance of global utilities to enable renewable energy and flow of finance to the global south will deliver momentum. As ever, the delivery time periods extend too far and allow incumbent governments to defer the issue – a ‘just transition’ also requires an ‘accelerated transition’.

• Indonesia Investment Authority (IIA), a sovereign wealth fund of Indonesia has agreed to shut the country’s largest coal-fired power station. David Elzinga, the energy principle at Asia Development Bank, stated “If we don’t address these coal plants, we’re not going to meet our climate goals”; and
• COP leaders, including The President of the International Monetary Fund (IMF) Kristalina Georgieva have pushed for a global carbon price, claiming that this will be a vital incentive to accelerate decarbonisation.