ONOME AMUGE

A raft of initiatives are emerging and getting launched at the ongoing U.N. climate summit, COP28, in Dubai aimed at boosting clean energy and reducing the world’s dependence on fossil fuels, details rolling out of the event show.

One of the most widely supported initiatives is expected to lead to a cut in the share of fossil fuels in global energy production, and reduce the greenhouse gas emissions that are driving climate change.

Wide support for the initiative is bolstered by its ambitious goal of tripling the world’s renewable energy capacity by 2030 leading to a huge cut in fossil fuels’ contribution to the world’s energy mix.

The pledge to triple renewable energy capacity by 2030 was just one of many initiatives that have emerged at the COP28 summit aimed at decarbonising the energy sector and meeting the goal of net-zero greenhouse gas emissions by 2050. One of the key commitments was made by the European Union, the United States, and the UAE, which pledged to phase out unabated coal power by expanding the use of nuclear power, reducing methane emissions, and ending investment in new coal power plants.

Sultan al-Jaber, the President of the COP28 summit, said that this initiative would help to move the world away from coal-fired energy by the middle of the century.

While the pledge to triple renewable energy capacity by 2030 has gained support from countries such as Brazil, Nigeria, Australia, Japan, Canada, Chile, and Barbados, two key players, China and India, have yet to fully endorse the plan. China and India have expressed support for the renewable energy goal, but they have not signed on to the overall pledge, which includes a reduction in fossil fuel use. This has led to concerns that the plan may not be fully adopted by the United Nations, which would require consensus among the nearly 200 countries present at the summit.

The International Renewable Energy Agency (IREA) has highlighted the need for increased investment in renewable energy, particularly in developing nations, to achieve the target of 10,000 gigawatts of installed capacity by 2030. However, this goal has been hampered by the high cost of capital for such projects, especially in Africa, which has received just two percent of global investments in renewable energy over the last two decades.

In a separate development, nearly 50 oil and gas companies, including ExxonMobil, signed the Oil and Gas Decarbonisation Charter (OGDC), which aims to reduce emissions from the oil and gas industry by 2050. 

The OGDC called for net zero emissions by 2050 or earlier, which is a more ambitious goal than many companies have previously committed to. The signatories of the charter include a mix of national oil companies (NOCs) and international oil companies (IOCs). The NOCs include Adnoc, Bapco Energies, and Saudi Aramco, while the IOCs include Eni, ExxonMobil, Occidental Petroleum, Shell, and TotalEnergies. The presence of both NOCs and IOCs on the charter is notable, as it indicates a broad commitment across the industry to decarbonise.

“The launch of the OGDC is a great first step – and while many national oil companies have adopted net-zero 2050 targets for the first time, I know that they and others can and need to do more. We need the entire industry to keep 1.5°C within reach and set even stronger ambitions for decarbonisation,”  Sultan Al Jaber remarked.

Meanwhile, world leaders at the COP28 summit, in their assessment of the progress made towards meeting global climate goals, explored ways to accelerate action and ambition in order to achieve the goals set out in the Paris Agreement and keep global warming below 1.5 degrees Celsius.

In her remarks at COP28, Kamala Harris, U.S. vice president, characterised the event as a “pivotal moment” in which the actions of individual countries could have far-reaching consequences for future generations. She acknowledged the progress made so far, but emphasised that more needs to be done to ensure a sustainable future for all. Harris also highlighted the challenges ahead and the need for a concerted effort to address climate change.

“Around the world, there are those who seek to slow or stop our progress. Leaders who deny climate science, delay climate action and spread misinformation. Corporations that greenwash climate inaction and lobby for billions of dollars in fossil fuel subsidies.

“In the face of their resistance, and in the context of this moment, we must do more,” Harris added.

President Lula da Silva of Brazil expressed frustration with the lack of progress on climate change, saying that the world is “tired of climate agreements that were not fulfilled.” He also criticised “eloquent and empty speeches,” indicating a desire for more concrete action and results. Brazil’s position as the home of the Amazon rainforest, one of the world’s most important natural carbon sinks, gives the country a critical role to play in the global effort to address climate change.

President Lula pointed out the injustice of poorer nations, which have contributed the least to climate change, bearing the brunt of its impacts. He also highlighted the enormous amount of money, estimated at $2 trillion, spent on weapons rather than on fighting climate change and addressing hunger.

Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), made a compelling case for phasing out fossil fuel subsidies in order to accelerate the world’s transition to a low-carbon economy. She noted that the record $7.1 trillion spent on subsidies in 2022 could have been better spent on investments that would help to reduce our reliance on fossil fuels and mitigate the effects of climate change.

According to Georgieva, the private sector will need to play a crucial role in increasing climate mitigation investment in order to meet the goals of the Paris Agreement. She pointed out that emerging markets and developing countries are responsible for the majority of greenhouse gas emissions, and therefore require the most investment to transition to a low-carbon economy. She also noted that the private sector will need to contribute around 80 to 90 percent of the necessary funding to achieve this goal.

In her words: “We need $5 trillion to make decarbonisation a reality and the question is, is $5 trillion, a lot of money?

“Well, it’s obviously not a little but put $5 trillion next to $7.1 trillion direct and indirect subsidies, or next to the size of the world economy, which is over $100 trillion. I think we should be brave and say yes, it can be done,” she stressed.

Georgieva also discussed the role of the IMF’s $40 billion  Resilience and Sustainability Trust (RST), which provides financing to help developing countries cope with climate-related challenges. She noted that the RST has already assisted 11 countries with their climate action plans, and she expressed optimism that blended finance models, which combine public and private investment, will become more prevalent.

The IMF chief executive commended the UAE’s pledge of $200 million to help vulnerable countries become more resilient to the effects of climate change, and she urged other countries to follow suit. She emphasised the urgency of taking bold and decisive action to address climate change, and she made the case that it is not only the right thing to do, but also the smart thing to do.

President Bola Tinubu of Nigeria spoke at a high-level meeting with stakeholders and investors at COP28 about the country’s new initiative to deploy a fleet of 100 electric buses, a move that he described as a “significant step towards a sustainable and eco-friendly future.” The initiative is part of Nigeria’s efforts to reduce its carbon footprint and transition to cleaner energy sources.

President Tinubu explained that the strategic initiative was aimed at significantly reducing Nigeria’s carbon footprint and modernising the country’s transportation systems as part of a larger effort to position Nigeria and Africa as the pioneering frontier of green manufacturing and industrialisation with a focus on natural gas as a transition fuel alongside other renewable energy sources.

The president’s statement also clarified that the initiative to deploy electric buses is a reflection of the country’s commitment to environmental stewardship and its collaboration with the Africa carbon market initiative. The president stated that the initiative is a strategic guidepost, aiming to position Nigeria as an attractive destination for investment in carbon markets.

“We recognise the imperative of fostering an environment that not only attracts investment but also upholds standardised and sustainable industrial practices. As a manifestation of our forward-thinking approach, we are actively looking to implement robust, enabling policies and frameworks that will serve as the catalyst for the burgeoning growth of the carbon market within our national borders,” he stated.

In order to implement the initiative, President Tinubu announced the appointment of two key individuals to co-chair the Nigeria carbon market activation plan. Zacch Adedeji, the executive chairman of the Federal Inland Revenue Service (FIRS), and Dahiru Salisu, the director general of the National Council on Climate Change (NCCC), will lead the plan, which aims to mobilise investment and drive economic growth through the development of carbon markets.