Huda Said‏‏

Amid the increasing challenges facing the world economy due to severe climate change, the events of the 28th Conference of the Parties on climate change (COP28) have come to a close. The conference was held from November 30 to December 13, 2023, in the UAE’s Expo City Dubai. The UAE Minister of Industry and Advanced Technology, His Excellency Sultan Al Jaber, presided over the conference, which hosted about 70,000 world leaders and public- and private-sector representatives. The conference activities yielded unprecedented outcomes leading to extraordinary agreements and financial commitments.Furthermore, for the first time, there was agreement on a statement confirming the start of complete elimination of fossil fuels. As the host of the latest session of the climate change conference, the UAE played a prominent role in mobilizing efforts to reach a global consensus among the 198 countries that participated in drawing up a road map and action plan that will contribute to enabling fair and equitable global climate action, thus reducing the impacts of climate change and preserving the rights of the coming generations to a secure and sustainable future.Positive OutcomesCOP28 received special attention from all countries at various levels, thus raising the ceiling of hopes and ambitions for extraordinary outcomes representing a new phase in international efforts to agree on binding decisions and results that reduce the expected effects of climate change. COP28’s particular significance sprang from the variety and importance of its topics, the global repercussions of climate change in 2023, and the trend toward supporting clean energy in many countries in order to evaluate their progress toward achieving the goals of the Paris Agreement to reduce greenhouse gas emissions and reach 1.5 degrees Celsius.The importance of COP28 also increased by hosting, for the first time ever, a day for global trade, business, and charity. The conference also addressed health and the environment, with the goal of discussing their contribution to global carbon emissions and how to enhance the role of trade in the transition to clean energy. In general, the most important outcomes of the conference include the following:1. Wide range of issues addressed: The conference highlighted the dangers of the geopolitical unrest that threatens world stability, the rapid growth of low-cost renewable energy, low-emission innovations, fears concerning energy security and rising demand for fossil fuels, the worsening climate disasters and ongoing food crisis, unprecedented public support for climate action, the lack of support directed to the countries most affected by climate change, and follow-up of the activation of the financing arrangements for the Loss and Damage Fund, which was agreed upon at the conclusion of COP27.The conference’s action plan focused on four main objectives: accelerating an orderly, responsible, fair, and reasonable transition in the energy sector; developing climate funding mechanisms; preserving people and improving lives and livelihoods; and supporting the previous pillars by fully including all developing and advanced countries, which necessarily reflects on sustainable development goals by addressing a program of specialized topics at the conference, including new work fields, such as health, trade, relief, recovery, and peace.COP28 relied on four general themes that support the effective implementation of sustainability plans and engagement with climate change. In the area of technology and innovation, the conference emphasized the role of technology as a main factor in the global move to renewable energy and the achievement of gas emissions reduction goals. In the area of funding, COP28 identified the urgent need to provide financing to combat climate change, with a focus on the need to increase annual investments in climate solutions. In the area of inclusion, the conference aimed to create a comprehensive process that allows the participation of all parties, thus helping to stimulate innovation and empower communities to introduce sustainable changes. Finally, in the area of frontline communities, the conference focused on supporting communities directly affected by climate change, especially in the most vulnerable developing countries.2. Activation of the Loss and Damage Fund: On the first day of the conference, there was an announcement about activating the Loss and Damage Fund, which was agreed upon during COP27 in 2022, to compensate the countries of the South most harmed by climate change and to ease funding tensions between the countries of the North and the South. The total contributions to the fund reached about USD 726 million, with both the UAE and Germany pledging USD 100 million. The US pledged to pay USD 17 million, on the condition that it can reach an agreement with Congress, and the UK also pledged GBP 60 million (about USD 76 million) to the fund.3. Announcement of unprecedented financial contributions: COP28 mobilized nearly USD 83.9 billion in funding for climate action, which represents a shift to a new era of global climate cooperation. These amounts include first-of-their-kind pledges, including transformation of food systems and the health sector, in addition to announcements concerning renewable energy and its efficiency, and initiatives aimed at eliminating carbon from heavy industries. Among the most important of these pledges is the World Bank’s announcement of an increase in climate funding to represent 45% of its total loans, which involves an annual increase of nearly USD 9 billion.The Inter-American Development Bank also announced an investment of more than USD 2 billion annually to combat climate change in Latin America until 2030. The Asian Development Bank announced the allocation of about USD 10 billion to invest in climate activities in the Philippines between 2024 and 2029, and Japan and France also made financial pledges to support the plan of the African Development Bank and the Inter-American Development Bank to benefit from the Special Drawing Rights of the International Monetary Fund for climate and development. In addition, Emirati banks pledged to mobilize a total of USD 270 billion in green financing, as well as USD 5 billion to the Green Climate Fund (the world’s largest fund devoted to supporting activities to combat climate change in developing countries).The UAE also launched a climate fund (ALTÉRRA), valued at USD 30 billion, aimed at stimulating the collection and investment of USD 250 billion by the year 2030. Moreover, the country has allocated USD 150 million to solve issues concerning lack of water resources and water security in poor communities. 4. Consensus on the UAE Declaration on Sustainable Agriculture: COP28 achieved an unprecedented global consensus and commitment on various topics and issues proposed at the negotiating table. About 11 declarations and agreements were reached, covering various aspects of climate action, including financing, agriculture, and health. Among the agreements reached on the agriculture sector and food security was the Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action, signed by approximately 153 countries. The declaration will help build resilience against climate change, strengthen food systems, reduce global emissions, and help in the global fight against hunger.New funds pledged to combat climate change in the global food system exceeded USD 7 billion, and funding was promised to help farmers reduce their footprint and adapt to climate change, including through innovation and renewable agriculture. The UAE signed a partnership with the Bill and Melinda Gates Foundation to the tune of USD 200 million for agricultural research and innovation, especially in climate-sensitive regions; the investment will ensure food security for vulnerable populations. In partnership with the US, the UAE also launched the Agricultural Innovation Mission for Climate (AIM for Climate), which has received support from more than 600 governmental and non-governmental partners and seen an investment increase of more than USD 17 billion, compared to USD 8 billion at COP27.5. Interest in developing the health sector to confront climate change: The UAE Declaration on Climate and Health was approved by 141 countries, with USD 2.7 billion pledged to the health sector. The Global Cooling Pledge was also approved by 66 countries, with USD 1.2 billion allocated for relief, recovery, and peace with the approval of about 78 countries and 40 organizations.6. Pledge to fund water and sanitation initiatives: During the conference, funding worth USD 45 million was pledged for the initiative to stimulate the technical and financial aspects of water and sanitation facilities in urban areas. The funding also included USD 34 million from the German Federal Ministry for Economic Cooperation and Development, and USD 11 million from the Dutch Ministry of Foreign Affairs. The UAE pledged about USD 150 million to fund innovations aimed at addressing water scarcity, while eight multilateral development banks announced they will work to double the number of annual beneficiaries of their technical and financial support in hydrology over the next three years.7. Trend toward increasing the production capacity of renewable energy sources: In the energy sector, about 130 countries signed a declaration on tripling the production capacity of renewable energy sources and doubling energy efficiency. About USD 2.5 billion was pledged for renewable energy sources, and nearly USD 568 million to push investments in clean energy production. In addition, a large number of oil and gas companies, for the first time, made a commitment to address methane gas emissions, pledging about USD 1.2 billion to reduce such emissions. The Industrial Transition Accelerator was endorsed by 35 companies and six industry associations, including the World Steel Association, International Aluminum Institute, Global Renewable Energy Alliance, Global Cement and Concrete Association, Oil and Gas Climate Initiative, and International Air Transport Association. In addition, 52 companies, representing 40% of global oil production, joined the COP28 Oil and Gas Decarbonization Charter.Thirty-one global entities and corporations formed Utilities for Net Zero Alliance (UNEZA), led by the Abu Dhabi National Energy Company (TAQA), as an executive tool to support the transition toward the use of electric power, expand the use of clean energy, accelerate dependence on renewable energy, build the necessary infrastructure, develop transmission and distribution lines to speed up the transition to electric energy within the energy system, support capital expenditures for transition projects in the electric energy sector in Global South countries, and promote partnerships with policy-makers and regulatory agencies to achieve climate neutrality by the year 2050.8. Adoption of Joint Statement on Climate, Nature, and People: The COP28 Joint Statement on Climate, Nature, and People was adopted by 18 countries. Some 30 countries joined the Mangrove Alliance for Climate, launched in partnership between the UAE and Indonesia at COP27 with the goal of building global momentum to promote climate action—bringing the total number of member states in the alliance to 37 countries containing more than 60% of the world’s mangroves. About 21 countries have officially signed the Mangrove Development Initiative, tasked with protecting and developing 15 million hectares of mangroves globally by 2030, with funding of USD 4 billion.Likewise, the Ocean Development Initiative was launched, aimed at supporting marine life while reducing emissions. Meanwhile, 86 countries joined the Global Alliance on Green Economy, which provides a platform for unifying global efforts, especially with the current growing climate pressures and the increasing need for countries to integrate their efforts.9. Consensus on gradual transition away from fossil fuels: On Wednesday, December 13, the UAE government succeeded in reaching the final wording of the concluding statement of COP28. The final statement received global consensus, with representatives of 197 countries participating in COP28 approving the UAE Consensus on climate action, which pushes countries, for the first time, to transition away from the use of fossil fuels. The third amended version of the draft text was approved, which included a reference to a complete, fair, orderly, and equitable transition from fossil fuels in the current decade, and an accelerated transition to clean energy, with the goal of net zero greenhouse gas emissions by the year 2050.In this vein, the final statement document calls on countries to take emissions-reduction measures. The document recognizes the need for deep, rapid, and sustainable reductions in greenhouse gas emissions, consistent with the goal of 1.5 degrees Celsius, through certain actions, such as accelerating zero and low emissions technologies, the use of carbon-free fuels, decarbonization by 2050, the use of low-carbon hydrogen, and accelerated efforts towards gradual reduction of coal production and use. The document calls on countries to triple renewable energy capacity and double energy efficiency rates by 2030, as agreed to by 130 countries at COP 28.Key ImperativesThe UAE’s COP28 Presidency had remarkable success in achieving the goals of the conference, and it exceeded the ambitions set for the international climate action process. For the first time, the UAE succeeded in incorporating comprehensive provisions concerning traditional fuels, so as to achieve a balance between growth requirements and climate action. The UAE was also successful in overcoming climate action inertia and achieving international consensus among nearly 198 countries, thus strengthening its leading global status in mobilizing international efforts and contributing to building a sustainable future for humanity.It is worth noting that the conference’s success in reaching these results and recommendations remains dependent on the political will of the major countries and their desire to implement the conference outcomes. It is also necessary to provide and mobilize the appropriate soft funding by reforming the financial systems of international financial institutions, such as the World Bank and the International Monetary Fund, and reduce reliance on debt. It will be important to provide the means to implement the funds and pledges and effectively monitor the progress of the action plan drawn up at COP28, which in turn contributes to paving the way for achievements at the upcoming Conferences of the Parties. Azerbaijan will host the next UN Climate Change Conference (COP29) from November 11-22, 2024, while COP30 will be held in Brazil, from November 10-21, 2025. Australia’s bid to host COP31 in 2026, will be decided during next year’s conference events, while the Albanian government and its partners in the Pacific Islands are competing with Turkey to host the conference.Sources1. Weise, Z., &amp; E&amp;E News. (2023, December 7). The world got failing grades on climate action. Here’s how COP28 aims to fix that. Scientific American. <a href="https://rb.gy/z4q6p7" rel="noopener noreferrer" target="_blank">https://rb.gy/z4q6p7</a>2. Shine, I. (2023, November 29). COP28: These are the key talking points for the 2023 climate summit. World Economic Forum.&nbsp;<a href="https://rb.gy/fzungy" rel="noopener noreferrer" target="_blank">https://rb.gy/fzungy</a>3. Lakhani, N. (2023, June 12). $700m pledged to loss and damage fund at Cop28 covers less than 0.2% needed. The Guardian. <a href="https://shorturl.at/bnG89" rel="noopener noreferrer" target="_blank">https://shorturl.at/bnG89</a>4. Del Bello, L., Dlouhy, J.A., &amp; Rathi, A. (2023, December 12). New COP28 draft demands swifter fossil fuel transition. Bloomberg. <a href="https://shorturl.at/glrRT" rel="noopener noreferrer" target="_blank">https://shorturl.at/glrRT</a>5. COP28: Hoped-for "extraordinary" outcomes. (2023, December 13). Sky News Arabia. <a href="http://tinyurl.com/mrx22txr" rel="noopener noreferrer" target="_blank">http://tinyurl.com/mrx22txr</a>6. COP28: Historic "UAE agreement" consolidates the future of climate action. (2023, December 13). Sky News Arabia. <a href="http://tinyurl.com/bdeamcez" rel="noopener noreferrer" target="_blank">http://tinyurl.com/bdeamcez</a>

What Came of the COP28 Negotiations?