Keep up with COP28: Including the Energy and Industry Day

The main event

Energy and industry day

Energy and Industry Day at COP was dominated by cooling. With cooling sector greenhouse gas emissions predicted to more than double by 2050, the conference announced measures attempting to curb this. 

• The Global Cooling Watch report, Keeping it Chill: How to meet cooling demands while cutting emissions, was released by the UN Environment Programme. It lays out sustainable cooling measures in three areas: passive cooling, higher-energy efficiency standards, and a faster 'phase down' of climate-warming refrigerants.[i]
• The report was announced in support of the Global Cooling Pledge, a joint initiative between the UAE and the Cool Coalition. Over 60 countries signed up to the pledge which commits them to reducing the climate impact of the cooling sector. The aim is to improve energy efficiency and reduce emissions produced by the cooling sector while still increasing access to sustainable cooling.[ii]

Multilevel action day   

Wednesday at COP focused on multilevel action, urbanisation, the built environment, and transport. The day was held in partnership with the United Nations Human Settlements Programme and the UN Climate Change High-Level Champion for COP28. New initiatives coming out of the day centre on climate action in cities and their constituent systems:  

• Urbanisation. 64 countries joined the Coalition for High Ambition Multilevel Partnerships (CHAMP) which commits them to partnerships with subnational governments with the aim of enhancing the next round of Nationally Determined Contributions (NDCs) and other climate plans. The first ever Local Climate Action Summit was also held, hosting more than 250 mayors and governors and in the process mobilising $467 million for urban climate action which will finance urban infrastructure and the necessary subnational climate action.[iii]
• Built environment. Canada and the UAE launched the Cement and Concrete Breakthrough to tackle the 7% of global emissions which come from the cement industry. The Buildings Breakthrough was also announced, involving 27 countries, aiming to achieve near-zero emissions and resilient buildings by 2030. The UK, US, Canada, and Germany signed the Green Public Procurement Pledge - a commitment to push demand for low and near-zero-emissions steel, cement, and concrete through public procurement.[iv]
• Transport. The Green Shipping Challenge announced a number of Green Shipping Corridors between the US, UK, Canada, and South Korea; and Norway announced it will invest $20 million to support emerging markets to decarbonize shipping. 30 industry leaders also signed a Joint Commitment which will enable the use of renewable hydrogen-derived shipping fuel.[v]

In the news

Funding conversations continue

Much of the discussion at COP28 has focused on the need for finance, which has become a point of contention for those nations most vulnerable to natural disasters becoming more frequent due to climate change. Delegates have argued that funding needs to be increased not only for recovery schemes, but for infrastructure that will aid climate resilience. 

• Reuters analysis found that sovereign wealth funds, controlling $12 trillion in assets, have struggled to increase their climate investments, due to mandates that require predictable returns.[vi]
• Regulators and government bodies are toughening up their language, in a bid to force organisations to do more. The European Central Bank has warned banks that they will be penalised if they fail to adequately prepare for the climate risk in their portfolios.[vii]

Canada clamps down on emissions

Canada’s announcement that it will implement emissions cuts for its oil and gas industry dominated headlines. Environment Minister Steven Guilbeault revealed that the Canadian Government will set a legal limit on the sector’s emissions, allowing companies to buy and sell a limited number of emissions permits. The move will see emissions reduce by as much as 38% compared to 2019 levels. 

• Federal government unveils what it calls a 'strict' oil and gas cap to curb emissions.[viii]
• Canada asks oil firms to cut emissions by up to 38% in six years.[ix]

Fuelling the debate  

Intense talks on a commitment to phase out fossil fuels have continued, with the media trying to divine any progress being made. With negotiating time running out, there has been a lot of speculation on what form of language will appear in the final agreement.  

• The BBC reports that the UAE negotiating team have expressed “cautious optimism” for a deal on ‘phasing down’ fossil fuels and that abandoning their use altogether was still on the table.[x] 

Other voices

Africa should be exempt from EU carbon tax

In interviews with Reuters and The Guardian Nigeria, the Head of the African Development Bank, Akinwumi Adesina, has said that African countries should be exempt from a proposed EU carbon tax on some imports. Making the appeal at COP28, Adesina put the cost of the tax to the continent at as much as $25 billion per year and warns that the policy would damage Africa’s ability to export materials including steel, cement, iron, aluminium and fertilisers. 

• Development bank head at COP28 urges African exemption from EU carbon tax.[xi]
• Africa could lose $25 billion per year as new EU carbon tax comes into effect, warns African Development Bank’s Adesina.[xii]

IPCC scientists call for power over climate policy 

A group of five scientists who are lead authors on the Intergovernmental Panel on Climate Change (IPCC) report have called for the right to make policy prescriptions. They argue that scientists should be able to make formal recommendations to the governments of the 195 states signed up to the UN Framework Convention on Climate Change and potentially oversee the implementation of them.

• We need power to prescribe climate policy, IPCC scientists say.[xiii]

Verge of five climate ‘tipping points’ 

An international team of over 200 researchers have identified that five global climate ‘tipping points’ are at risk of being crossed. The report, led by Professor Tim Lenton at Exeter University, suggests that the mass death of warm-water coral reefs is likely at current temperatures. Four tipping points are considered possible at current warming levels, including the collapse of Greenland and the West Antarctic ice sheets.

• Humanity Is on the Verge of 5 Climate ‘Tipping Points,’ Report Warns.[xiv]

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i. unep.org - Keeping it chill: How to meet cooling demands while cutting emissions - 05.12.23
ii. cop28.com - Key measures could slash predicted 2050 emissions from cooling sector - 05.12.23
iii. cop28.com - COP28 announces new partnerships and initiatives to advance sustainable urban development - 06.12.23
iv. and v. cop28.com - COP28 announces new partnerships and initiatives to advance sustainable urban development - 06.12.23
vi. reuters.com - Sovereign wealth funds struggle to turn their trillions to climate finance - 06.12.23
vii. bloomberg.com - ECB Warns Banks of Penalty ‘Escalation’ If Climate Risks Ignored - 06.12.23
viii. cbc.ca - Federal government unveils what it calls a 'strict' oil and gas cap to curb emissions - 07.12.23
ix. reuters.com - Canada asks oil firms to cut emissions by up to 38% in six years - 07.12.23
x. bbc.co.uk - COP28: Is the world about to promise to ditch fossil fuels? - 06.12.23
xi. reuters.com - Development bank head at COP28 urges African exemption from EU carbon tax - 06.12.23
xii. guardian.ng - COP28: Africa could lose $25 billion per year as new EU carbon tax comes into effect, warns African Development Bank’s Adesina - 07.12.23
xiii. theguardian.com - We need power to prescribe climate policy, IPCC scientists say - 07.12.23
xiv. bloomberg.com - Humanity Is on the Verge of 5 Climate ‘Tipping Points,’ Report Warns - 06.12.23