Global Stocktake

What You Need to Know.

  • The thematic focus of the day’s programming was on nature, land use, and ocean, including events on scaling effective solutions that protect, restore, and beneficially manage nature ecosystems, addressing drivers of nature loss, empowering Indigenous Peoples and local communities, and creating resilient livelihoods.  As part of this discussion, the United Nations Environment Program (UNEP) launched a report highlighting that nearly $7 trillion of public and private finance each year supports activities that directly harm nature—thirty times the amount spent annually on “nature-based solutions,” or actions to protect, conserve, restore, sustainably use, and manage natural resources that simultaneously provide human well-being, ecosystem, and resilience and biodiversity benefits.
  • Late Friday evening, various news organizations reported that the head of the Organization of the Petroleum Exporting Countries (OPEC) sent a letter to its thirteen members as well as ten additional countries (altogether known as “OPEC plus”), highlighting the increased pressure to reach an agreement to phase out fossil fuels at COP28.  The letter urged the OPEC plus nations to “reject any text or formula that targets energy i.e. fossil fuels rather than emissions.”
  • Various high-level officials from international organizations or countries central to the energy transition made statements in favor of reaching an agreement to curb fossil-fuel production.  Dr. Fatih Birol, Executive Director of the International Energy Agency, noted that it is “imperative” that countries agree to an “orderly and just decline in fossil fuels in line with our international climate goals.”  These comments were echoed by Xie Zhenhua, China’s climate envoy, who noted China’s desire to see an agreement that would reduce fossil fuel consumption, and Alok Sharma, the president of the COP26 summit in Glasgow, who stated that “If you’re going to keep 1.5C alive” countries need both “language on a phase-out of fossil fuels” and “a credible implementation plan.”
  • The Netherlands launched a coalition to phase out fossil fuel subsidies, along with Austria, Belgium, Ireland, Spain, Finland, Antigua and Barbuda, Canada, France, Denmark, Costa Rica, Luxemburg.  The coalition has three pillars: (1) publishing a list of their fossil fuel subsidies before COP29; (2) working together to identify and address international barriers to phasing out fossil subsidies; and (3) shaping an international dialogue to share knowledge, develop national strategies for phasing out fossil benefits, and seek joint action to minimize carbon leakage.

Continue Reading COP28 Day 9 Recap: Nature, Land Use, Oceans, and Nature-Based Solutions

What You Need to Know.

  • The UNFCCC has released a draft text of the negotiated outcome of the first Global Stocktake under the Paris Agreement.  The draft text currently includes four options to address the question of “phasing out” versus “phasing down” the use of fossil fuels, with the strongest option’s wording being “[a] phase out of fossil fuels in line with best available science.”  Options with weaker wording would call on the Parties to the Paris Agreement to take action towards “phasing out unabated fossil fuels and to rapidly reducing their use so as to achieve net-zero CO2 in energy systems by or around mid-century.”
  • The distinction between “abated” and “unabated” fossil fuels and the meaning of “abated” are being hotly debated, with many commentators warning about the potential of creating a loophole through legal ambiguity.  This draft text will form the basis of intense high-level negotiations between global leaders over the next days.
  • Vanuatu and Tuvalu have renewed calls for a Fossil Fuel Non-Proliferation treaty to address the climate crisis.  Such a treaty is being promoted by supporters as an alternative to the COP process if world leaders cannot agree to phase out fossil fuels.
  • The governments of Armenia and Azerbaijan—until recently at war with each other—issued a joint statement acknowledging not only a “historical chance to achieve long-awaited peace in the region” but confirming that as a “sign of good gesture” Armenia would support Azerbaijan’s bid to host COP29.  Hours later, Russia reportedly blocked Azerbaijan’s bid, according to EU diplomats.  If countries cannot agree, Germany will be the default host country.  Looking further ahead, COP30 in 2025 is widely expected to be hosted by Brazil.
  • December 8 was “Youth Day,” and featured events focused on empowering and elevating the voices of young people in the climate negotiation process.  Shamma Al Mazrui, COP28’s “Youth Climate Champion” and the UAE’s Minister of Community Development, stated in remarks, “when young people have a seat at the table and a voice in decision making they become agents of change.”
  • Leading up to COP28, a “Global Youth Statement” that synthesizes collective climate policy demands and proposals of young people, was provided to the UNFCCC and COP28 Presidency by YOUNGO, the official children and youth constituency of the UNFCCC.  The statement includes demands for a “just, equitable and secure transition to a fossil fuel phase-out” and more financial support for vulnerable communities to address the impacts of climate change.

Continue Reading COP28 Day 8 Recap: Empowering Global Youth and a Look Towards Final Negotiations

What You Need to Know.

  • With a focus on multilevel action, urbanization, and the built environment and transport, the events of Day 7 of COP28 highlighted efforts to transition to low-carbon and resilient infrastructure, particularly in urban areas.  This thematic focus is significant; according to the UN Environmental Programme, cities are responsible for an estimated 75 percent of global CO2 emissions, primarily from transportation and buildings.

Continue Reading COP28 Day 7 Recap: “A Bullet Train to Speed Up Climate Action”

What You Need to Know. 

  • “We very much believe and respect the science,” said COP28 President Al Jaber on Monday after it had been reported that he had earlier commented that there was “no science” behind requiring the phase-out of fossil fuels to limit global warming to 1.5C. President Al Jaber went on to say that “the phase down and the phase out of fossil fuel is inevitable.”  This statement comes after heavy criticism from climate activists and scientists of President Al Jaber’s earlier comments, further emphasizing the centrality of the “phase down” vs. “phase out” debate as a wedge issue at this COP.
  • According to the UAE COP Presidency, the first four days of COP28 have seen a collective commitment of USD $57 billion in climate finance from governments, businesses, investors, and philanthropies.  Although still falling short of the global investment needs, these collective pledges show the continuing growth in climate-focused capital around the globe.
  • The U.S. Commodity Futures Trading Commission (“CFTC”) has issued proposed guidance regarding the listing of voluntary carbon credit derivative contracts, the first guidance specifically targeting the voluntary carbon market (“VCM”) by a federal U.S. regulator.  The proposed guidance outlines certain factors a CFTC-regulated exchange, or designated contract market, should consider when addressing requirements of the Commodity Exchange Act (“CEA”) and CFTC regulations that are relevant to the contract design and listing process.  The proposed guidance will be open to public comments until February 16, 2024.

Continue Reading COP28 Day 5 Recap: Climate Finance Continues to Grow and Carbon Offsets Face More Regulation