UNFCCC's COP 28: main outcomes and failures

 The 28th  conference under the United Nations Framework Convention on Climate Change (UNFCCC) came at a critical moment in time, with 2023 set to be the warmest year on record and the impacts of climate change rapidly accelerating. International climate change negotiations at the COP28 conference in Dubai concluded on 13 December 2023.

Below are the main outcomes and failures of the COP 28:

The agreement on the EU Emissions Trading System and the Social Climate Fund

 The European Council and the European Parliament reached a provisional political agreement on legislative proposals of the ‘Fit for 55’ package that will allow the EU to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality in 2050 while making sure the most vulnerable citizens and micro-enterprises are effectively supported in the climate transition.

The Council and Parliament agreed to increase the overall ambition of emissions reductions by 2030 in the sectors covered by the EU ETS to 62%.

EU funds the energy efficiency improvements in buildings

 Around EUR 25 billion have been allocated in energy efficiency investments in buildings from EU funds over the period 2014-2020, while more than half of these fundings (EUR 12.7 billion) have been invested in the public sector, according to the recent JRC report " Financing energy renovations at local and regional levels. European status and good practices".

Public procurement and grants & subsidies represent more than 80% of all financial instruments adopted and reported by local authorities for the achievement of the 2030 target within the Covenant of Mayors (CoM) initiative.

Source: https://lnkd.in/ghf8kAK9

Federal government will invest $183 million in Low Carbon Cities Canada

                        Source: http://lc3.ca/

Low Carbon Cities Canada (LC3)  is an initiative that will support and accelerate urban carbon emission reduction actions, helping Canada meet the 2030 and 2050 climate change mitigation targets. LC3 is a partnership between  the Federation of Canadian Municipalities and seven local centers located in largest metropolitan areas -  Vancouver and the Lower Mainland, Edmonton, Calgary, the Greater Toronto & Hamilton Area, Ottawa, Montreal Metropolitan Community, and the Halifax region, representing 43 per cent of the country’s population, and working in partnership with the Federation of Canadian Municipalities. These centers will be serving more than 100 cities and towns all over the country. 

European Investment Bank launches fund to support the circular bioeconomy

The new EIB fund will provide access to finance – in the form of equity, debt or quasi-equity – to innovative circular bioeconomy companies and projects of various sizes. 
ECBF Management GmbH and Hauck & Aufhäuser Fund Services S.A. will act as the Alternative Investment Fund Manager.  ECBF Management will raise funds from public and private investors with a target fund volume of EUR 250 million and aims for a first close in Q1 2020. 
It is expected that EIB also will invest up to EUR 100 million in the fund.

What to expect from COP25?

The key issues to be discussed and resolved at COP25 include:
- Strengthening Climate Ambition, Long-Term Decarbonization and Resilience.
At COP25, countries must not only reiterate but strengthen their commitments regarding  enhanced NDCs by 2020 and launch national inclusive and multi-stakeholder enhancement processes.
- The rules, modalities, procedures, and guidance developed under Article 6 must be in line with the highest standard of environmental integrity.
Recommendations should be prepared on far more ambitious NDCs based on the findings of the three recent IPCC special reports on 1.5°C, land, and oceans and cryosphere. Rich countries must use the Pre-2020 

Outcomes of UN Climate Action Summit in New York

United Nations Climate Action Summit, which was held in New York on September 23, 2019, boosted climate action momentum, and demonstrated growing recognition that the pace of climate action must be rapidly accelerated.
 Among major outcomes of the Summit:

• 65 countries and  sub-national economies committed to cut GHG emissions to net zero by 2050
• Over 100 business leaders delivered concrete actions to align with the Paris Agreement targets,  including asset-owners holding over $2 trillion in assets and leading companies with combined value also over $2 trillion

Energy Efficiency Investment Toolkit presents a new perspective on boosting investments

The G20's Energy Efficiency Investment Toolkit, published by International Partnership for Energy Efficiency Cooperation, provides a set of collaborative and voluntary options for G20 countries to boost energy efficiency investments and realize the significant economic, environmental and social benefits of energy efficiency in their economies. 

Green Climate Fund contributes US$ 378 million to EBRD projects

This contribution will be made in support of sustainable energy financing facilities the Bank is offering in Armenia, Egypt, Georgia, Jordan, Moldova, Mongolia, Morocco, Serbia, Tajikistan and Tunisia. The program, with overall cost of more than US$ 1.4 billion in the 10 countries, is expected to leverage a five-fold additional financing by participating private sector banks to reduce greenhouse gas emissions by about 2 million tonnes a year.

Extreme weather disasters, induced by global warming, cost U.S. $67 Billion

Between 2005 and 2015, the presidents of the U.S. issued 832 separate emergency or disaster declarations for which Federal Emergency Management Agency (FEMA) provided either public assistance—defined as funding for state, tribal, and local governments—or individual assistance in the form of grants typically made to homeowners and renters whose home damage was not covered by homeowners insurance.

How climate finance can be transformational factor towards low-carbon economy

A working paper, published by World Resource Institute, examines the most critical elements for transformation by reviewing 20 case studies from both developed and developing countries and across all regions. A transformation is defined as a long-term fundamental shift in a system, whether political, economic, social, or biological.

The Environmental Protection and Energy Efficiency Fund - Croatian experience

The Fund was established in 2003 as an extra-budgetary fund, what means that financial sources for the Fund’s operation are secured from different kinds of environmental fees, all of which are following the ‘polluter-pays’ principle. The annual incomes of the Fund are at the level of approximately €200 million.

World Bank approved financing for the first phase of the Climate Resilience Program in Central Asia

WB's Board of Executive Directors recently approved an allocation of US$38 million from the International Development Association to finance the first phase of the Climate Adaptation and Mitigation Program for Aral Sea Basin (CAMP4ASB). The program includes US$9 million for Tajikistan, US$14 million for Uzbekistan, and US$15 million for regional  activities.

UNDP Administrator on aggregating financing for low-carbon energy

More than 1.1 billion people around the world currently lack basic access to electricity. Huge investments will be required to meet these needs and to enable developing countries to meet rapidly growing electricity demand  - and to do so in sustainable ways. UNDP, in partnership with the GEF, is already supporting innovative solutions for transformation of the energy sector so that the proportion of renewable provision in the mix can rise. 

India’s climate adaptation gap is over $1 trillion by 2030

Estimation of the adaptation gap, between what needs to be spent and what is spent, was made by independent study conducted in India. According to the study, as many as 800 million people living across nearly 450 districts in India are currently experiencing significant increases in annual mean temperature going beyond the 2°C warming pathway.

EBRD financing for sustainable energy has grown from 15% in 2005 to 34% in 2014.

For the first time the Bank’s investments in renewables overtook those for thermal power generation. Between 2006 and the end of 2014, the EBRD invested €16.4 billion in sustainable energy and climate change projects under the framework of the Sustainable Energy Initiative. Financing for renewable energy generation represented roughly 23 per cent or approximately €4 billion. 

World Bank Group will increase climate financing by one-third

Jim Yong Kim, President of the World Bank Group announced that Group will increase climate financing to potentially $29 billion annually with the support of its members, giving a huge boost to global efforts to mitigate climate change and move toward low-carbon growth. Currently, 21 percent of the Bank Group’s funding is climate related, but it could be risen to 28 percent in 2020 in response to client demand.

Banks provide financing for geothermal development in Eastern Caribbean

New $71.5 million loan and grant package, called the Sustainable Energy Facility (SEF), is approved by the Inter-American Development Bank (IDB) and the Caribbean Development Bank (CDB). Program will support geothermal and other sustainable energy development projects in the Eastern Caribbean.

UK spends 0.7% of national income on foreign aid - highest rate among developed countries

According to  The Economist , since 2010, the UK's aid budget has risen by 40% and reached $19 billion. Only America disburses more - $33 billion, what represents just  0.2% of its gross national income. About 62% of UK Department for International Development (DFID) spending now goes to multilateral organisations, up from 56% in 2009. 

The United States and China Joint Presidential Statement: Common Vision for an Ambitious Global Climate Agreement in Paris

The Joint Presidential Statement was made on the occasion of President Xi’s State Visit to Washington, D.C.and it includes significant domestic policy announcements and commitments to global climate finance. Statement builds on last November’s historic announcement by President Obama and President Xi of ambitious, respective post-2020 climate targets, describes a common vision for a new global climate agreement to be concluded in Paris this December.