As COP-28 unfolds, the world witnesses nations forming alliances and making commitments to secure a sustainable future. On the first day of the event, the Loss and Damage Fund was cleared with over USD 450 Mn of commitments from various countries, wherein all developing countries are eligible to apply for the fund to get compensation for dealing with the effects of climate change. Over the weekend, global methane agreement also saw some traction.
COP 28 President Charles Michel delivered a compelling address during the COP28 plenary, urging intensified and swift international efforts to limit the global temperature increase to 1.5 degrees. Stressing the critical decade ahead, Michel, the European Council President, affirmed the EU’s unwavering dedication to achieving climate neutrality. He highlighted the EU’s notable achievements in reducing greenhouse gas emissions by 30% since 1990 and outlined ambitious goals, including tripling renewable energy and doubling energy efficiency while advocating for a rapid transition away from fossil fuels.
National Commitments and Policy Shifts
Countries are under growing pressure to demonstrate their commitment to climate action, with COP28 serving as a platform for nations to showcase their plans and policies. A classic example is the European Union’s (EU) ambitious goal to phase out unabated use of fossil fuels. With a comprehensive strategy in place, Europe aims to lead by catalysing a collective response to combat climate change. This bold initiative reflects the EU’s dedication to align with international climate goals, which in turn will act as a beacon for other nations to follow. In addition, countries such as Denmark and Costa Rica are elevating the climate ambition bar by striving for net-zero emissions. Denmark, renowned for its commitment to renewable energy and Costa Rica, a pioneer in sustainable development, are strongly advocating for a path towards a future free of carbon emissions. In Denmark, solar power is becoming increasingly popular as a source of clean energy. In fact, Denmark is aiming to get 50% of its total electricity consumption from renewable sources by 2030. Norway has set the target of achieving 90% renewable energy consumption by 2030.
A quick look at how some of the economies of the world have pledged to curb carbon emissions and focus on green initiatives.
India: One of the fastest-growing economies in the world set a target to achieve carbon neutrality by 2070. It has already strategized the production of green energy but its heavy dependence on non-renewable sources is a challenge. The implementation of a carbon border tax by the EU may help to reduce carbon footprint, but a strong framework is needed for it to work efficiently in India.
USA: The largest economy in the world has also committed to accomplishing carbon neutrality by 2050. To achieve this, they have implemented carbon neutrality measures and law reforms both at state and federal levels. They have targeted to reduce greenhouse gas emissions by 65% by 2030 and make all cars and trucks electric by 2035. The current Presidency has set a goal to reduce carbon emissions by 50% – 52% compared to 2005 levels by 2030, a carbon free power sector by 2035. Officials are considering ways to remove carbon emissions from the atmosphere through tree plantings as well as carbon capture and storage techniques. Reduction in methane and other non-CO2 GHGs emissions is also being looked at.
Middle East: A region traditionally dependent on fossil fuels, is also committed to diversifying its energy portfolio. COP-28 serves as a platform for Middle Eastern nations to explore and implement sustainable alternatives, acknowledging the pivotal role they play in shaping the global climate agenda.
- Saudi Arabia: It is a leader in terms of GDP among all Middle Eastern countries and is the largest oil exporter globally. To achieve carbon neutrality by 2060, the country is actively shifting its focus from oil-related activities to non-oil activities. Oil-related activities witnessed a significant drop in GDP growth rates, reflecting a negative growth rate of -17.3% in Q3 2023. On the contrary, non-oil activities recorded a positive growth rate of 3.6% in the third quarter of 2023. Also, with its NEOM initiative, Saudi Arabia, is set to build a futuristic city that will be the world’s largest and most technologically advanced sustainable city. NEOM aims to produce 100% of its power from renewable energy sources, including solar and wind power. It aims to make transportation within the city self-driving, electric, and hyperconnected. It is planning to build all its buildings using sustainable materials and techniques. The city aims to have the world’s largest green building stock, which will reduce energy consumption and carbon emissions. They plan to use innovative zero-waste-to-landfill by 2030 and water conservation and management.
- UAE: The host country for COP-28, is also investing heavily in renewable energy sources, green infrastructure, and sustainable technologies and is at the forefront of sustainable initiatives. Oil sector which accounted for 90% of the GDP in 1971, now accounts for only 30%. Their transformation journey is attributed to the rise of tourism, real estate, and financial sector. Read more about UAE’s transformation journey, economic and infrastructural developments, and the size of the real estate market along with their environmental impact in our recent report. ‘United Arab Emirates (UAE): A March Towards Carbon Neutrality’.
African Union (AU) is aiming to achieve 100% renewable energy by 2030. The continent of Africa has a great potential for renewable energy due to its abundant sunshine and wind resources. However, there are several challenges that need to be addressed in order to realize this potential, such as the lack of infrastructure and high initial costs. A number of countries, including Nigeria, Ghana, South Africa and Ethiopia, have already started investing in renewable energy and are making great progress towards reaching their goals.
COP28 will undoubtedly see more countries unveiling their updated climate pledges, reinforcing global momentum towards a sustainable future. This not only aligns with international climate goals but also prompts nations to collaborate on innovative solutions for shared environmental challenges. The outcomes of these conferences are not merely diplomatic agreements but tangible actions that resonate across borders. Through these COP events, individuals, businesses, and governments gain a deeper understanding of the interrelation of environmental challenges and the collective responsibility to address them.