As the critical Conference of the Parties (COP) 28 summit in Dubai approaches its conclusion on Day 5, the controversies surrounding COP28 President Sultan Al Jaber continue to captivate attention. Amidst sessions focusing on “Finance, Trade, Gender Equality, and Accountability,” with the rallying slogan “Unite, Act, and Deliver,” Monday (December 4) unfolded with a mix of controversies, deals, and significant announcements.
Controversy Over COP28 Presidency:
On Monday, COP28 President Sultan Al Jaber addressed and defended his role in hosting this year’s UN climate summit. Responding to a report in The Guardian on comments made last month about the phase-out of fossil fuels, Al Jaber insisted on his understanding and respect for climate change science. The controversy stems from a November 21 online event where he remarked that there is no scenario suggesting the phase-out of fossil fuels is the key to achieving the 1.5°C target. Al Jaber expressed disappointment at the misrepresentation of one statement taken out of context, asserting the COP28 presidency’s commitment to reducing 43% of global emissions by 2030.
The broader controversy lies in the host country, the UAE, being one of the world’s top oil-producing nations and Al Jaber, the CEO of the state-owned oil company, presiding over COP28 talks. Reports indicate that the COP28 Presidency, in collaboration with Saudi Arabia, launched the Oil and Gas Decarbonisation Charter (OGDC). This global industry charter garnered signatures from 50 oil and gas companies, representing over 40% of global oil production. The signatories committed to net-zero operations by 2050, ending routine flaring by 2030, and achieving near-zero upstream methane emissions.
Key Announcements on Day 5:
UAE Banking Federation’s Pledge: During the Global Climate Action Through Fostering Sustainable Finance event at COP28, HE Abdul Aziz Al Ghurair, Chair of the UAE Banking Federation, unveiled a significant commitment. The UAE Banking Federation collectively pledged to mobilize AED 1 trillion, equivalent to nearly $270 billion, by 2030 for sustainable finance initiatives.
Future Declarations by COP28 President: COP28 President Sultan Al Jaber announced that three more declarations would be made in the coming days, focusing on hydrogen, cooling, and gender. He expressed pride in delivering the first-ever declarations on health and food systems during the COP28 Presidency.
UK’s Climate-Resilient Debt Clauses: The UK announced the introduction of climate-resilient debt clauses in Africa, starting with Senegal. In collaboration with 73 countries, a call to action was issued for the adoption of these clauses. The United Kingdom, along with France, the World Bank, the African Development Bank Group, the European Bank for Reconstruction and Development (EBRD), and the Inter-American Development Bank (IDB), expanded the use of climate-resilient debt clauses in their lending. These clauses aim to pause debt when countries are impacted by natural disasters.
France and Japan’s Support for African Development Bank: France and Japan pledged to lead in supporting the African Development Bank’s breakthrough facility to leverage Special Drawing Rights (SDRs) for climate and development. SDRs, foreign exchange reserves held at the International Monetary Fund, backed by major currencies, will be channeled for climate-related initiatives.
ReNew Energy Global’s Funding Pact with ADB: Renewable energy firm ReNew Energy Global Plc inked an initial pact with the Asian Development Bank (ADB) for a funding of $5.3 billion. The memorandum of understanding (MoU) was signed during COP28, emphasizing collaboration for sustainable energy transition.
Arab Energy Fund’s Investment in Decarbonisation: The Arab Energy Fund, formerly known as APICORP, announced plans to invest up to $1 billion over the next five years in decarbonisation technologies. This initiative aligns with the institution’s strategy to support the regional energy transition towards net-zero goals.
Rockefeller Foundation’s Pilot Initiative: A consortium led by the Rockefeller Foundation launched the Coal to Clean Credit Initiative (CCCI). This pilot initiative aims to use carbon credits to retire a coal power plant in the Philippines before its natural life ends. The CCCI plans to finance the early closure of the South Luzon Thermal Energy Corporation (SLTEC) plant by as early as 2030, leveraging carbon credits.
ADB’s Climate Finance for the Philippines: The Asian Development Bank (ADB) committed $10 billion in climate finance for the Philippines between 2024 and 2029. These funds will support the Philippines in implementing its climate action commitments under the Paris Agreement.
Methane Regulations: Canada, Brazil, and Egypt announced new methane regulations at the COP28 climate summit. As part of the Global Methane Pledge, 155 countries have committed to collectively reducing methane emissions by 30% from 2020 levels by 2030.
Insights from Key Speakers:
- UN Secretary-General Antonio Guterres emphasized the need for developed countries to double adaptation finance to $40 billion a year by 2025 and clarify the delivery of the promised $100 billion.
- Razan Khalifa Al Mubarak, UN Climate Change High-Level, announced the launch of COP28 gender-responsive trust transition and climate action partnership, acknowledging the crucial role of women in climate action.
- IMF Managing Director Kristalina Georgieva stressed the urgency of swift, quality, and deep action to fulfill duties to future generations.
- UN Special Envoy for Climate Action and Finance, Mark Carney, underscored the critical role of reducing emissions without waiting a decade.
Day 5 of COP28 in Dubai unfolded with a mix of controversies, groundbreaking announcements, and commitments shaping the global climate agenda. From financial mobilization to sustainable finance pledges and innovative initiatives, the spotlight remains on the collective efforts to address climate challenges and fulfill international climate targets. The action agenda of “Unite, Act, and Deliver” is guiding principles, signaling a commitment to scale up sustainable finance and manage financial risks effectively. The COP28 summit continues to serve as a platform for meaningful discussions, collaborations, and tangible actions towards a more sustainable future.