Call from Dubai: COP28 results – my assessment

Things got hectic again at the end when the COP presidency presented the first final draft of a conclusion on Monday evening. There was no fossil fuel phase-out, no real ambition. Crisis diplomacy and a tough struggle behind the scenes later, the global community has now agreed on an outcome that the majority supports.

For the first time, a COP final communiqué mentions the transition away from fossil fuels. Renewable energy capacity is to be tripled, and energy efficiency doubled by 2030. This is not a clear "phase-out" of fossil fuels – as many have called for. But it is a realistic step in the right direction, and the document's commitment to "accelerating" the promotion of zero- and low-emission technologies is what matters now.

The fact is that fossil fuels will be needed for the foreseeable future to meet the world's growing energy demand. It is important that their share is consistently reduced and replaced. And where they are necessary, they must be used as efficiently and sustainably as possible. We also need a massive expansion of renewable energies and a vast improvement in energy efficiency everywhere.

This is precisely what 西门子能源 stands for. With our positioning along the entire energy value chain, we offer the technologies needed to achieve the goal reaffirmed in Dubai of reducing global greenhouse gas emissions by 43 percent by 2030.?

Now it is up to governments around the world to take decisive action to make the first-ever commitment to phase out fossil fuels into reality. After all, the targets agreed on in Dubai are not enough to meet the 1.5-degree target agreed on in Paris.

I would like to highlight a couple of points to enable energy transition:

1. A lot of Investment?

There is no getting around it. Driving meaningful climate action forward will cost a lot of money. These investments will need a business case, meaning energy cannot continue to get cheaper. Funding all the necessary energy projects across industries will, therefore, require a shift in mindset.?

At the same time, a system must be put in place to help the poorest countries in the world to finance this transition. COP27's takeaway to provide loss and damage funding for vulnerable countries hit hard by climate disasters was an important step in the right direction. At COP 28, a positive outcome was already achieved on the first day of the conference. About 700 million dollars have been pledged. This is more than the vague intentions of the past – even if the amount can only be a start.

2. Effective Implementation

The need to carry out new grid infrastructure and renewable projects is greater than ever. Making this possible will require a ramp-up of resources, factories, and infrastructure. Since the volumes we are talking about are so huge, it will be necessary to set boundary conditions for energy projects as effectively as possible. It is not just about easier, faster, and more predictable permitting procedures but also more standardized equipment and concepts and a predictable implementation plan.?

3. Innovation

45% of all emissions savings in 2050 will come from technologies that have yet to reach the market. The question, therefore, is how do we make innovative technologies commercially viable in the energy market? Because energy projects have such a long life span, it is tough to implement technologies that, despite being innovative, haven't been proven in the long term.?

4. Global Trade

There is no doubt that pushing for diversification of supply chains and technologies is the right approach. However, we should not fool ourselves. Diversification comes at a cost and requires time. While diversifying, we also need to ensure that we keep global trade open and viable. Everything that slows the implementation of energy technologies will also slow the fight against climate change.

5. Industry Involvement

We have taken a big step forward here in Dubai, and in my discussions with political, business, and financial leaders, there was a clear desire to work much more closely together. COP28 will hopefully serve as an example for future COPs that all stakeholders need to act if we want to make the energy transition happen.