COP28: World Climate Summit

The World Climate Action Summit took place over Friday 1 December and Saturday 2 December 2023 with more than 170 world leaders present. Heads of state each gave short speeches to deliver their views on the planet's climate crisis, what their nation is doing and what they think others should do. King Charles III said in his speech that “Earth doesn’t belong to us, we belong to the earth.” Key takeaways from over weekend:

• UAE announced a USD 30 billion fund to bridge the financing gap. The fund named ALTÉRRA will focus on climate investment in the Global South. Partners include BlackRock, Brookfield and TPG.
• 134 world leaders signed the ‘COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action’, addressing global emissions and protection of the lives and livelihoods of farmers. The signatory countries are home to over 5.7 billion people and almost 500 million farmers, produce 70 percent of the food we eat, and are responsible for 76 percent all emissions from global food systems or 25 percent of total emissions globally.
• The UAE pledged USD 200mn to the IMF Resilience and Sustainability Trust. The trust helps low income and vulnerable middle income countries build resilience to external shocks and ensure sustainable growth, contributing to their longer-term balance of payments stability.
• Japanese PM has pledge to end new construction in Japan of unabated coal-fired power plants.
• Prime Minister Rishi Sunak unveiled how more than £1.6bn in climate funding would be spent, as well as confirming a new £11bn investment partnership for the Dogger Bank offshore wind farm.
• Prime Minister Narendra Modi reiterated India’s commitment to reach net zero by 2070 and proposed that India hosts COP33 in 2028.
• India introduced a ‘Green Credit' Initiative which aims to go beyond carbon credits and focuses on creating carbon sinks. Prime Minister Modi, along with Sweden's PM Ulf Kristersson, President of Mozambique Filipe Jacinto Nyusi and European Council president Charles Michel, launched the web portal of Green Credits Programme during the event.

Renewable deployment has been ascending for years, but challenges such as escalating costs, workforce constraints, and supply chain disruptions have led to project setbacks and cancellations. At the COP28 climate summit on Saturday, 118 governments pledged to triple the world's renewable energy capacity by 2030, as a route to cut the share of fossil fuels in the world's energy production.

• Supporters included Brazil, Nigeria, Australia, Japan, Canada, Chile, and Barbados.
• China and India indicated backing the tripling of renewable energy by 2030, however neither supported the overarching commitment that pairs the surge in clean energy with a reduction in fossil fuel usage.

Other key takeaways from Saturday include:

• 50 oil and gas companies representing 40 percent of global production pledged to decarbonise their operations by 2050. Saudi giant Aramco and ADNOC were among 29 national companies to sign the non-binding agreement that also envisaged zero methane emissions and eliminating routine flaring this decade.
• The executive director of the IEA has said oil and gas producers must convert their operations to renewable energy or face steep economic decline. Methane emissions from fossil fuel operations would need to fall by around 75% between 2020 and 2030, according to the IEA, to meet net zero by 2050.
• US outlined measures to cut methane emissions by 80% in next 15 years.
• Vice President Kamala Harris announced that the US will contribute $3bn to a climate fund for developing countries.
• US joins Powering Past Coal Alliance working to advance the transition from unabated coal power generation to clean energy. Other new members include the Czech Republic, Cyprus, Dominican Republic, Iceland, Kosovo and Norway.
• Colombia will formally join the bloc of nation-states seeking to negotiate a Fossil Fuel Non-Proliferation Treaty.
• COP28 secures more than $420mn to seed loss and damage fund: The Financial Times reports that COP28 has secured over $420mn to seed its "loss and damage" fund aimed at helping developing nations cope with climate change. Negotiators faced challenges including the fund's location, contributors, and beneficiaries.

We reported on Friday that pledges include: - The UAE pledged $100 million to the fund. - Germany pledged a contribution of $100 million. - The UK pledged $50 million. - The United States pledged $17.5 million. - Japan pledged $10 million. - Canada pledged $16 million. - An EU representative said it would give $145mn on top of Germany’s contribution on behalf of the 27-member bloc.