The 28th annual Conference of Parties, COP28, took place in the United Arab Emirates (UAE) to monitor, review, and update global implementation of the United Nations Framework Convention on Climate Change. The 2023 conference started on November 30th and was scheduled to end on December 12th. However, a landmark climate agreement was signed into effect by 197 countries and the European Union on December 13, 2023, one day after the conference was expected to conclude. While the agreement, dubbed the ‘UAE Consensus’ has garnered most of the attention in the aftermath of COP28, notable commitments and funding for climate change remediation also occurred as an outcome of the conference.

While the conference was the most attended Conference of Parties to date with 100,000 attendees, it also had a larger presence of fossil fuel industry representatives and lobbyists than in other years. There were 2,456 registered conference delegates officially representing companies from the fossil fuel industry, an increase from the roughly 600 delegates who attended COP27. At a time when GHG emissions due to travel are assessed by corporations and governments, it could also be argued that 100,000 people traveling to attend COP28 works against the very nature of such a conference.

Assessing the ‘UAE Consensus’: Landmark Climate Agreement or Compromised Compromise?

Despite the rocky start and the controversies around various aspects of the conference, notable progress was made toward addressing and mitigating climate change globally.

The heralding achievement at COP28 was the ‘UAE Consensus’ which saw nearly 200 countries come together to ratify a landmark agreement setting out an ambitious climate agenda with the aim of keeping the pathway towards a 1.5°C temperature increase in reach. The agreement is historic in that it is the first time a UN climate change text has explicitly recognized the need to transition away from fossil fuels in energy systems. In the nearly three decades of COP conferences before this, participating countries have shied away from directly acknowledging the oversized role that fossil fuels have played in climate change.

Alongside language covering the agreement to transition away from fossil fuels, are ambitious targets to triple renewable energy output and double the average annual rate of energy efficiency globally by 2030. The agreement commitment surrounding energy follows the voluntary Global Renewables and Energy Efficiency Pledge, led by the European Union and signed by 129 countries including the United States, the United Kingdom, Japan, and most EU-member states. China and India rejected the pledge as it called for ending investments in new coal-fired power plants.

Supporters of the ‘UAE Consensus’ praise the deal as a landmark achievement that marks the beginning of the end for fossil fuels. However, critics argue that the agreement will not be nearly as effective as it needs to be due to the agreement language being tampered down significantly to allow reaching an agreement between global parties. The tamed-down language in the final agreement disappointed many of the participating countries and delegates who were hoping to see “phase-out” or even “phase-down” language surrounding fossil fuel abatement. In the final COP28 agreement draft, definitive committal language such as “commit” or “declares” was replaced with phrases such as “acknowledges,” “notes,” “express concern,” “welcomes,” and “emphasizes” – all of which may be interpreted as non-committal phrases and, therefore, lacking authority.

Additionally, the agreement only commits to transitioning away from fossil fuels used in energy systems, failing to take into consideration fossil fuels used in the plastic production, transportation, and agriculture industries. Transportation and Agriculture were responsible for 29% and 10% of U.S. GHG emissions, respectively, by sector in 2021. Failure to address fossil fuel emissions arising from these economic sectors will severely hamper efforts to keep global warming at the targeted 1.5°C temperature increase.

Filling the Financial Gap: A Closer Look at COP28 Climate Financing Initiatives and Pledges

The United Nations currently estimates a conservative financing gap of over $500 billion a year for climate-related projects in emerging markets and developing countries over the next decade. According to The Independent High-Level Expert Group on Climate Finance, global climate investment has reached roughly 1% of global GDP but is not on track to deliver the change needed, particularly in emerging and developing economies. In the UN Adaptation Gap Report 2021, it was projected that countries will need to spend $300 billion a year by 2030 and $500 billion a year by 2050 to sufficiently adapt to climate change. The UN has also estimated that developing countries will need roughly 10 to 18 times more funding for adaptation to climate change compared to what is currently allocated.

Several fund initiatives were set up or revisited during the conference to address financing sustainable development and climate change loss and damage remediation. Over $85 billion in funding was committed to various climate financing initiatives at the summit.

Loss and Damage Fund

Originally agreed upon in 2022 at COP27, the Loss and Damage Fund aims to provide financial assistance to vulnerable nations impacted by climate change at a disproportionate level. At COP28, the fund was operationalized by securing $792 million in early pledge commitments. The United States contributed a $17.5 million pledge to the fund, while France, Germany, Italy, and the UAE contributed the largest commitments to the fund, each pledging at least $100 million.

ALTÉRRA Climate Fund

The newly formed ALTÉRRA Climate Fund was announced by the UAE at COP28. The $30 billion fund intends to steer climate financing in private markets and increase awareness and focus on transforming emerging and developing markets. To bring more private finance to the Global South, the fund aims to invest $250 billion by 2030.

Green Climate Fund

The Green Climate Fund is the largest international fund for climate action in developing countries, and during COP28, $12.8 billion in replenishment funds was pledged to the fund. The United States was the largest contributor to the Green Climate Fund, matching the initial pledge of $3 billion. France, the UK, and Germany were the next largest contributors pledging roughly $2 billion each. COP28 marks the second time the fund has been replenished since its generation in 2014. The initial armament of the fund and the first replenishment garnered roughly $10 billion each.

Other Climate Financing Funds

The five multilateral development banks, responsible for encouraging and facilitating international economic development measures, pledged a total of $31.6 billion towards various climate funds. The UAE pledged a further $200 million in special drawing rights toward the International Monetary Fund (IMF) Resilience and Sustainability Trust, a trust dedicated to developing and supporting climate resilience in lower-income countries. Other notable financing that arose from the conference includes $134 million in new commitments to the Adaptation Fund, $129.3 million in new pledges to the Least Developed Countries Fund, and $31 million in funding to the Special Climate Change Fund.

COP28 Breaks Ground on Sustainable Agriculture and Climate-Resilient Food Systems

In the same fashion that agreements on fossil fuel transition planning have been historically left out of the summit conversations, the impact of food systems on our climate has not been a topic of discussion at COP conferences in the past. However, this year’s Conference of Parties opened with the COP28 UAE Delegation on Sustainable Agriculture, Resilient Food Systems, and Climate Action which was signed by over 150 participating countries throughout the conference. Nations that signed the pledge effectively agreed to fully incorporate food and agriculture systems into the next round of nationally determined contributions which are re-evaluated every five years.

Food was an integral topic of focus at the conference this year with a whole day dedicated to discussing sustainability issues and innovation across the food and agriculture sectors. Additionally, the UN Food and Agriculture Organization (FAO) laid out a food systems roadmap aiming to outline the pathway to bringing global food production in line with global climate goals. The roadmap will be further developed and finalized at COP30 in Brazil.

Sustainability professionals in the food industry hope the FAO food roadmap will help countries integrate sustainable food systems into their climate goals. Professionals also hope that the increased attention sustainable food systems have garnered at this year’s conference will help to increase access to funding for food-sector-based climate solutions, which currently only receive roughly 3% of public climate financing.

Closing Thoughts

In summary, COP28 marked a historic commitment to climate action with the ‘UAE Consensus’ signed by almost 200 nations and the European Union. While the progress is commendable, concerns persist about diluted language and fossil fuel-intensive sector omissions in the agreement, emphasizing the need for more definitive actions. The conference addressed climate financing with over $85 billion committed to various funding initiatives, including notable climate funds for developing nations and emerging markets. COP28 also spotlighted the impact of food systems on climate change, laying the groundwork for the integration of food production, transportation, use, and disposal into climate strategies – including the importance of food on human health. While recognizing the achievements of the conference, it is critical to emphasize that meaningful change requires ongoing and collaborative global efforts.

For more information on how KERAMIDA can assist your organization in meeting its Sustainability and Climate targets, contact us or call (800) 508-8034 to speak with one of our Sustainability professionals today.

Author

Lauren Besser, MBA
Sustainability Analyst
KERAMIDA Inc.

Contact Lauren at lbesser@keramida.com

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