Eurochambres views on COP28 UAE
COP28 UAE in Dubai marks a critical point for assessing global progress under the Paris Agreement. The first Global Stocktake (GST) will provide a detailed review of achievements since the agreement's inception. This evaluation is key to directing effective climate action and identifying measures to address progress gaps. The fusion of the private sector's innovation and commitment with supportive policies is crucial for driving the green transformation.
Described as the "implementation COP," COP28 UAE stands as a pivotal event, marking the culmination of the Global Stocktake (GST) and setting a roadmap for intensified climate action. This conference is not only a venue for operationalizing the loss and damage fund—a critical support for countries grappling with irreversible climate impacts—but also a forum for finalizing frameworks that bolster climate resilience and adaptation.
A key focus of the negotiations at COP28 is climate finance, spotlighting the report by the Standing Committee on Finance on the commitment of developed nations to double adaptation finance by 2025. The discussion extends beyond fulfilling the $100 billion pledge, delving into how the private sector can amplify adaptation finance. Significantly, COP28 aims to establish the foundations for a post-2025 global climate finance goal, advancing from the existing $100 billion target.
This intersection of global climate policies and the business landscape is critical. Decisions at COP28 are poised to shape regulatory frameworks, policy commitments, and investor expectations. This highlights the urgency for businesses to align their strategies with global climate goals, offering a pragmatic, optimistic, and ambitious path forward.
The business sector is already transforming in response to corporate sustainability demands. This evolution is evident in innovative, sustainable products and services and a fundamental shift in operating models to respect planetary boundaries. Driven by value creation, risk management, and the need to reconfigure economies within these boundaries, this change is profound.
In recent years, the business sector's commitment to renewable energy has surged. In 2022, investment in energy transition technologies reached a record $1.3 trillion. Although this falls short of the required investment for the 1.5°C scenario, the International Energy Agency projects a significant increase in clean energy investment in 2023, signaling a decisive shift in investment priorities.
The interplay between government policy, political will and proactive steps by businesses underlines the essence of COP28 as the "implementation COP". The private sector's commitment and innovation capability, combined with supportive policies, regulations, and infrastructure, is pivotal for this transformation.
