COP28 Overview: Key Milestones in Global Climate Efforts
Highlighting the pivotal developments and agreements at COP28
This Week in Sustainability update highlights the groundbreaking outcomes of the COP28 summit held in Dubai, where a historic agreement, the "UAE Consensus," was reached. The article delves into the significant steps taken by nearly 200 countries towards reducing fossil fuel consumption, the notable pledges in climate finance, and the strides made in standardizing sustainability reporting. Join us as we explore these pivotal developments and their implications for the global fight against climate change.
A historical agreement: the UAE Consensus
At the COP28 summit in Dubai, a momentous decision was made by representatives from nearly 200 countries to substantially reduce global fossil fuel consumption1. This agreement, which emerged from two weeks of rigorous negotiations, represents a global effort to shift away from fossil fuels, thereby addressing climate change. Despite facing resistance from influential oil-producing entities like OPEC, the agreement gained support from major oil and gas producers as well as several small, climate-vulnerable island nations.
The COP28 agreement outlines a plan to transition away from fossil fuels, aiming for net zero emissions by 2050. Key aspects of this plan include a substantial increase in renewable energy capacity, targeted to triple by 2030, and the development of technologies like carbon capture and storage. However, the agreement has faced criticism for certain compromises and loopholes that seem to cater to the interests of oil-producing countries. Moreover, it is noted for its lack of strong commitments from wealthier nations to provide financial aid to developing countries in their shift towards cleaner energy sources.
Climate finance
During the COP 28, significant commitments were made by various national governments and organizations towards climate finance, focusing on funds like the Loss and Damage Fund, Green Climate Fund, Adaptation Fund, Least Developed Countries Fund, and Special Climate Change Fund2. The Green Climate Fund saw an increase in its second replenishment, with pledges reaching USD 12.8 billion3 from 31 countries. Additional commitments totaling over USD 160 million were made to the Least Developed Countries Fund and Special Climate Change Fund. The Adaptation Fund also received pledges nearing USD 134 million, and the Loss and Damage Fund USD 792 million.
Despite these contributions, the global stocktake at COP28 highlighted that these funds fall short of the trillions needed for developing countries to transition to clean energy, implement national climate plans, and adapt to climate change. The need for reforming the multilateral financial architecture and finding new, innovative sources of finance was emphasized to meet these substantial financial requirements. Moving forward, COP28 set the stage for further action and planning in climate finance and mitigation. Discussions revolved around setting a 'new collective quantified goal on climate finance' by 2024, starting from a baseline of USD 100 billion per year.
This goal is aimed at supporting the design and implementation of national climate plans due by 2025. The mitigation work program, initiated at COP27, will continue until 2030, including at least two global dialogues each year. This continued focus signals a collective effort towards transitioning to decarbonized economies and societies, underscoring the importance of sustained and increased global financial commitments to combat climate change effectively.
Sustainability reporting
The European Financial Reporting Advisory Group (EFRAG) and the Global Reporting Initiative (GRI) have formed a new cooperation agreement to enhance sustainability reporting4. This collaboration focuses on aligning the European Sustainability Reporting Standards (ESRS) with GRI standards to eliminate the need for double reporting. Additionally, it includes efforts in developing reporting standards and guidance, ensuring proportionate reporting for SMEs, and providing education and training for those preparing and using ESRS. This collaboration, which includes the creation of a GRI-ESRS Interoperability Index, is a significant step towards standardized and efficient sustainability reporting in Europe.
At COP28, nearly 500 organizations, including major companies and investors representing over $120 trillion in assets5, pledged support for the International Sustainability Standards Board’s (ISSB) climate-related reporting standards. This commitment, involving 140 companies from 64 jurisdictions, underlines the global importance and urgency of adopting consistent sustainability reporting standards.
Emmanuel Faber, the chair of ISSB, responded to the declaration saying:
“Signatories to this declaration represent organizations of all sizes from every continent. We recognize this as a signal of the urgency behind our work and confirmation that the ISSB Standards can deliver a vital global solution in the need for better information about the risks posed by climate.
Faber will continue his role as chair of ISSB until 2027, guiding the board's efforts in shaping global sustainability reporting standards.
Take away of the COP28
In conclusion, the COP28 summit in Dubai was a testament to the power of intense negotiations and collective resolve in the face of a global challenge. While significant progress was made, with historic agreements and commitments signaling a shift towards a more sustainable future, it is evident that the journey ahead is still fraught with challenges. The financial pledges, though substantial, fall short of the vast sums required to fully support the transition to clean energy and climate adaptation, especially in developing nations. As we move forward, the world will be watching closely to see how countries meet their commitments and effectively utilize the funds collected. The expectations are high, and the need for action is urgent, underscoring the importance of continued diligence and collaboration in the ongoing battle against climate change.
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https://www.reuters.com/sustainability/climate-energy/cop28-presidency-wants-historic-mention-fossil-fuels-text-up-nations-2023-12-12/
https://unfccc.int/sites/default/files/resource/Summary_GCA_COP28.pdf
https://unfccc.int/news/cop28-agreement-signals-beginning-of-the-end-of-the-fossil-fuel-era
https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FSiteAssets%2FFinal%20Press%20release%20-%20GRI-EFRAG%20MoU%20and%20interoperability%20tool_final.pdf&utm_source=substack&utm_medium=email
https://esgclarity.com/cop28-firms-representing-120trn-declare-support-for-advancement-of-issb/?utm_campaign=ESGCA%20News%205%20Dec%202023%20ROW%20ex%20HK%20SG&utm_content=&utm_term=https%3A%2F%2Fesgclarity.com%2Fcop28-firms-representing-120trn-declare-support-for-advancement-of-issb%2F&utm_medium=email&utm_source=ESG%20Clarity