Today's Edition
Sharifa Al Raeesi*
The conclusion of the COP28 climate conference in the UAE in late 2023 signalled a promising moment in the history of climate summits. Negotiations in that conference reached a historic agreement to transition from fossil fuels and establish a ‘Loss and Damage Fund,’ along with a series of initiatives to support green solutions and vulnerable communities. The UAE, with its leading position in clean energy and sustainable development, led these international climate efforts with concrete steps toward global progress in combating climate change.
The UAE’s agreement has become the frame of reference for global climate ambition, as it focuses on mitigation, adaptation, and financing. It outlined the path for a fair and orderly transition in the energy sector in a way that makes the goal of limiting global temperature rise to 1.5°C within reach.
The agreement also underlined increasing clean renewable energy production and supporting countries that are most vulnerable to the impacts of climate change by initiating and activating a global climate fund to address the negative effects of climate change. This fund was endorsed at COP27 but without a clear management structure for compensating developing countries for climate-related damages. Furthermore, 50 of the world’s largest energy companies, responsible for over 40% of global oil production, committed to a “Decarbonisation of Oil and Gas” pact.
As financing is the cornerstone of the energy transition, one of the major financial commitments at COP28 was a pledge of approximately $1.2 billion in targeted climate finance to reduce emissions. In 2023, renewable energy sources grew at a record speed, increasing by 16.6% in the Middle East alone to reach 35.5 gigawatts, and doubled over the past decade. However, we still need much more.
As we prepare for COP29 in Azerbaijan in November 2024, there is a global aspiration for new initiatives and commitments that build on COP28’s outcomes regarding fossil fuels, renewable energy, and the Loss and Damage Fund. The focus should be on mobilising finance from wealthier countries to help affected countries adapt and mitigate climate impacts. Also, priorities should include increasing battery storage capacity, expanding power grids, improving food systems, and reducing methane emissions from organic waste, as these are the third largest human-made sources of methane after the energy and agricultural sectors.
To achieve the target of 11 terawatts of renewable energy production by 2030, a $6 trillion investment over six years is needed, along with investments in upgrading power grids in developing countries. However, resources are limited, and developing nations are burdened by debt. Ensuring access to affordable financing for emerging markets and the most vulnerable economies is crucial for making significant global progress in combating climate change. The annual $8 trillion climate financing that is required should be high on the agenda at the climate conference in Baku.
Given the serious effects of climate change on every part of the world, cooperation between all concerned stakeholders is needed to combat it, both at national and international levels. The UAE is playing a leading role in this effort by fostering cooperation between the presidencies of upcoming climate conferences in Azerbaijan and Brazil to ensure the implementation of COP28 outcomes and the achievement of global ambitions for emission reductions.
There should also be national plans that focus on making use of technology to improve energy and water efficiency and reduce emissions.
Combating climate change requires reforms that include all economic sectors to transition toward a resilient and secure climate for our life on Planet Earth. Expanding the scope of climate action and financing must also include food systems and agriculture, addressing food insecurity through resilience-building initiatives, and protecting vulnerable communities. COP29 provides a real opportunity to accelerate climate action through cooperation and commitment to building a more sustainable future for both our present and future generations.
*The author is a researcher and deputy head of advisory sector at TRENDS
