Insights from COP28: Shaping the Future of Global Climate Action

As we reflect on the conclusion of COP28 in Dubai, it’s imperative to take a look at the key takeaways that are likely to shape the future of global climate action. This event was hosted under the CEO of a prominent UAE-based state-owned oil company, Sultan Ahmed Al Jaber. The insights are likely to shape strategies governing ESG for Businesses in the coming years.

Here are the key insights from COP28 that readers would be interested to know.

The Move Towards Sustainable Energy Sources

In a historic move, around 200 countries decided to sign a new climate deal. This strategy is to emphasize a shift “away from fossil fuels in energy systems in a just, orderly and equitable manner”. While the demand to “phase out” fossil fuels faced opposition, this agreement encourages countries to contribute to global efforts to achieve net zero by 2050. The new strategy involves a shift away from fossil fuels and embracing sustainable energy.

Debate over the Climate Deal

The agreement can be deemed as imperfect, with critics voicing their concerns about the loopholes that still allow the production of fossil fuels. Eyebrows were raised on the inclusion of carbon capture and storage technology. Critiques questioned the global effectiveness of this technique. A strong plea was raised to re-evaluate the extensive approach of planting trees, as the focus lay on genuine efforts to reduce emissions rather than going for greenwashing tactics.

Challenges with Climate Finance

The conference opened with a focus on the financial challenges of climate change, particularly in developing countries. Although a climate damage fund is necessary, the pledges received are far from satisfactory. Notably, $17 million was committed by the US, while Germany and UAE promised $100 million each. This marks the urgent need for larger financial contributions, particularly from key players like China.

Commitment to Renewable Energy

More than 100 nations have committed to grow their renewable energy capacity three-fold by 2030. This is an ambitious goal that calls for faster development of solar and wind-powered projects. These projects are largely encountering local opposition and supply shortages. The growth trajectory of the industry looks promising despite these challenges.

Reducing Methane

The Global Methane Pledge gained support from over 150 countries, aiming to reduce methane emissions by 30% by 2030. Major countries emitting methane outlined viable strategies. The involvement of the public sector was significant, with gas and oil companies pledging to reduce methane generation to near zero by 2030. A substantial fund was also announced to support methane abatement projects in developing economies and emerging markets.

Failure of Carbon Offset Negotiations

Efforts to establish new rules for carbon offset trading faced a setback. The deal was rejected by the Latin American Ailac bloc, Mexico, and the EU. Talks will resume in 2024, presenting a critical opportunity at COP29 in Azerbaijan in 2025.

Why Do Companies Need ESG Services?

Post-COP28, national policymakers are likely to translate these climate priorities into legislative actions. Beyond oil and gas, other industries will be closely monitoring and adapting to the evolving regulations, considerations on supply change, and ESG norms. Forward-thinking businesses consult professionals like the IMC Group for ESG Services. With dedicated assistance, businesses can avoid reputational and legal challenges, embracing sustainability practices in every department.