COP28 Negotiators Reach Deal to Seize Economic Benefits of Transition Away From Fossil Fuels

December 13, 2023 /3BL/ - Ceres applauds world leaders for reaching a final negotiated Global Stocktake at COP28 that recognizes the need for deep, rapid, and sustained reductions in greenhouse gas pollution in line with the Paris Agreement. Limiting average temperature rise to no more than 1.5 degrees Celsius will require all nations to act even more swiftly and ambitiously. The agreement published today lays out a number of critical actions nations must take to address the impacts on our dangerously warming planet, including transitioning away from fossil fuels in a just, orderly, and equitable manner, accelerating zero and low emissions technologies and deployment of zero emissions vehicles, tripling renewable energy capacity globally by 2030, and doubling the global average annual rate of energy efficiency improvements by 2030, key milestones in global efforts to tackle the climate crisis.

Ceres President and Chief Executive Officer Mindy Lubber issued the following statement at the conclusion of the global summit in Dubai:

“We applaud world leaders for reaching an agreement in the final hours of COP28 that begins to acknowledge the need for a critical economic transition, but its success — and ultimately its legacy — will be determined by the actions that follow. We, along with hundreds of institutional investors and companies, have called on countries to take the most ambitious actions possible to prevent the worst outcomes of climate crisis by moving away from fossil fuels, investing in abundant renewable energy and innovative solutions, and supporting a just transition to a clean, sustainable, and inclusive economy.

The mention of fossil fuels in the COP28 text marks a milestone for a COP agreement, which has never been so explicit in naming the primary cause of the climate crisis. But because the language is vague and potentially presents loopholes that could undermine its own potential, it is, therefore, essential that these measures are interpreted properly and implemented aggressively to deliver emission reductions at the speed and scale that our global climate and economic security goals require.

The agreement comes at an urgent moment. Extreme weather and other climate-related catastrophes are already causing hundreds of billions of dollars in damage each year. The world is at severe risk of far greater challenges as we are on track to miss the 2030 goals of the Paris Agreement and achieve a zero emissions economy in time to prevent catastrophic climate change. At the same time, governments, businesses, and investors have a monumental opportunity to invest in secure, affordable, and reliable clean energy technology that brings enormous economic benefits and job growth.

As pivotal public policies — such as the Inflation Reduction Act in the U.S. — are fully implemented and funded, it becomes even more feasible, beneficial, and cost-effective to transition away from fossil fuels and shift to abundant, reliable, and affordable clean energy. This major step by the U.S. to tackle its own domestic pollution has spurred a surge of investment in clean energy manufacturing and deployment, offering proof that climate action is both a matter of economic risk management and an economic opportunity that benefits and brings an abundant clean energy future to all, especially energy, rural, and disadvantaged communities.

COP28 featured other signs of progress to celebrate — led on the first day by the announcement of a long-awaited Loss and Damage Fund, a key milestone for both climate justice and climate finance. It is a matter of basic fairness that the wealthy countries that have contributed the most to climate crisis, including the U.S., fund poorer nations that are the least responsible for our warming planet, as they prepare for the dangerous effects that will cause their people to suffer the most. It is also a matter of pragmatic necessity, as this is a global challenge that will not be solved without the participation of every nation. The Loss and Damage Fund and other similar funds will help to kickstart further investment in the least developed countries and small island developing States.

Additionally, oil and gas companies committed to take action to curtail methane emissions — the most potent greenhouse gas. While a necessary step, significantly more action is required from this sector to meet the goals of the agreement. Also encouraging is the commitment of nearly 130 countries to triple renewable energy capacity and double energy efficiency by 2030, and among more than 150 countries to build more sustainable food systems with resilient agricultural practices that benefit people, nature, and the climate. And six major food companies including Ceres’ network members Danone, General Mills, and Nestle announced the launch of a new global business alliance with EDF to drive action on methane emissions in their dairy supply. Each of these objectives are crucial to tackling the climate crisis and must now be followed by immediate and concrete actions to achieve them.

We look forward to working with Ceres’ network members, partners, and other stakeholders to ensure we build on the progress achieved at COP28 to create a stronger, more resilient and just economy.

About Ceres

Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.

Media Contact: Reginald Zimmerman, rzimmerman@ceres.org, 617-247-0700 ext. 136