Anticipating COP 28: Five Topics to Keep an Eye on

COP 28: 30 November to 12 December in Dubai

On the 17th of November, Copernicus, the European observatory, has recorded the global average temperature at 2.06° above pre-industrial level. The results from record temperature from June to October this year. This has led to increasing both the frequency and the intensity of extreme weather events, such as droughts, fire forests. As a result, physical damages have resulted from these natural catastrophes, but sadly also in human casualties.

To achieve the goal of keeping temperature rise below 1.5 degrees by 2100, it is necessary to reduce greenhouse gas emissions by 50% by 2030 and achieve net-zero emissions by 2050. The world is currently falling behind in achieving the goals set by the Paris Agreement, and efforts are needed to mitigate the devastating impacts of climate change.

The anticipation for COP28 in Dubai, led by Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Company and Masdar Chairman, permeates the business community. Al Jaber asserts the energy industry's prowess in steering the necessary energy transition.

Amidst global tensions, COP28 sets its sights on pivotal pillars, including fast-tracking the energy transition, fixing climate finance, addressing adaptation funding, and incorporating nature into the agenda.

This comprehensive agenda includes a meticulous review of the global stocktake. It not only tracks nations' progress on Paris Agreement goals but also fosters agreement on pathways to 2050 and more ambitious targets. The survey of countries' emission reduction targets aims to assess the viability of the 1.5°C Paris Agreement goal.

To effectively meet these global targets, a cohesive policy roadmap is paramount, encompassing financial, policy, and market levers. Empowering corporations and investors to mobilize capital, the IRA and Green New Deal frameworks play a crucial role.

In the realm of the energy transition and market transformation, the emphasis is on accelerating and scaling up. However, the challenge lies in the phased-out transition from fossil fuels, given the industry's significant presence. To tackle this, COP28 ambitiously sets targets to triple renewable energy output and double hydrogen production by 2030.

While navigating carbon markets, a trust crisis impacts credit value. The coexistence of around 70 carbon pricing approaches necessitates finalizing language around article 6.4 and deciding on methodologies to bring credibility to the carbon offset market.

Turning attention to finance and adaptation, COP28 urges a serious commitment to financing adaptation, recognizing the escalating financial impacts of physical climate risks. Encouraging robust adaptation and resilience plans globally becomes imperative.

Amidst these efforts, setting a climate goal for 2030 and beyond gains prominence. Advocacy for a global goal on the adaptation framework further solidifies the commitment.

The interconnectedness of nature and climate is a prevailing theme. Acknowledging biodiversity loss as both a consequence and contributor to climate change, COP28 underscores the significance of restoration measures like reforestation and soil regeneration.

Markets are increasingly at risk from the impacts of climate change and biodiversity loss. Businesses and investors must integrate their impacts and dependencies on nature into transition planning. The interconnection between nature and climate change is recognized, and biodiversity restoration is considered a part of the solution.