Confronting Climate Crisis at COP28: A Critical Juncture for Global Action and Accountability

The annual United Nations Climate Summit, COP28, is currently underway in Dubai, running from November 30 to December 12, 2023. This year’s summit is set against a backdrop of record low levels of Arctic sea ice and the warmest year on record. Further, 2023 saw the fourth-most active hurricane season on record, despite it being an El Nino year, which typically suppresses hurricane activity in the Atlantic.

History of the COP (Conference of the Parties):

For years, climate issues went long unrecognized by international bodies. In 1992, the United Nations Conference on Environment and Development, also known as the “Earth Summit,” led to the creation of the United Nations Framework Convention on Climate Change (UNFCCC), which provided a framework for climate negotiations at the annual COPs. The first Conference of the Parties took place in 1995, and has led to binding treaties and agreements such as the Kyoto Protocol in 1997 and the 2015 Paris Agreement, which set a target of limiting global warming to well below 2 °C - ideally 1.5 °C - above pre-industrial levels. 197 countries have signed the UNFCCC, and COP28 will see representatives from each country debating and negotiating on these critical climate issues.?

This Year’s Summit:

Despite climate commitments from previous summits, just a few weeks prior to the start of COP28, the UN timely reported that global carbon emissions by 2030 will be cut by only two percent compared with 2019 levels, falling well short of the 43 percent reduction needed to limit warming to 1.5 °C. A report from the World Meteorological Organization also found there is a 66 percent chance that the annual average global temperature in 2023-2027 will breach the 1.5 °C threshold.

These figures and climate events not only signify the urgent need for climate action, but also make clear that government commitments from previous UN climate summits have been largely unfulfilled.

Goals of COP28:

The main task of COP28 is the Global Stocktake (GST), a first-time assessment of countries’ progress toward the 2015 Paris Agreement's goal of limiting the global temperature rise to “well below” 2 °C, preferably 1.5 °C.

Ideally, this will push countries falling short of their commitments to correct course, and strengthen their actions to reduce greenhouse gas emissions, as parties’ climate action plans are due in 2025.

Another main discussion topic will be the phase-out of fossil fuels. At COP26, more than 40 countries agreed to phase out coal, but did not agree to phase out other fossil fuels, such as oil and gas.?

Countries including the United States and many in the European Union are insisting on a commitment from COP28 to phase out fossil fuels, but other countries such as Russia have stated they would oppose a fossil fuel phase-out. This will undoubtedly lead to a difficult and contentious discussion of the issue.?

Tulipshare’s Action:

Tulipshare continuously engages with some of the world’s most influential companies, addressing material risks associated with the climate crisis and the clean energy transition.

For instance, in 2022, Tulipshare called on Tesla to link ESG metrics to Elon Musk’s compensation package, incentivizing improvements regarding climate change.?

This engagement came after Transition Pathway Initiative ranked Tesla’s management quality as a one out of six, stating that the company does not recognize climate change as a relevant risk Moreover, a 2022 report from As You Sow found that, out of 55 companies assessed, Tesla is actually making the slowest progress to reach net zero emissions - ranking dead last.

As the events and reports leading up to COP28 have made evident, there is no time to waste to address the climate crisis. Corporations must be held accountable for their role in reducing global greenhouse gas emissions. Tulipshare empowers investors to confront the climate crisis and engage with these corporate offenders, creating a lasting impact beyond financial returns. Visit our campaigns for more information on how Tulipshare can help you align your investments with your values and create tangible change at the companies in your portfolio.