COP28 marks historic progress toward global decarbonization
In the midst of what is expected to be the hottest year on record, according to the World Meteorological Organization (WMO), the 28th United Nations Climate Change Conference surprised by announcing the agreement to operationalize the Loss and Damage fund to compensate poorer nations for the impacts of climate change. For the first four years, the fund will be administered by the World Bank, with the goal of raising at least U$100 billion a year from donors.
This year’s event had a record number of participants, with more than 90,000 registered, according to Reuters. To put this into perspective, the first COP in Berlin (1995) had 4,000 participants. In addition, figures released by the COP presidency indicate US$83 billion in new financial commitments.
Despite initial expectations of skepticism from various stakeholders, COP28 ended on a historic note with the first mention of fossil fuels in an official document in almost 30 years of the conference.
Our CEO, Felipe Bittencourt, who was part of the WayCarbon delegation along with Luisa Valentim (Head of Business Development), Melina Amoni (Climate Risk and Adaptation Manager) and Bruna Araújo (Sustainable Finance Manager), analyzed the final edition’s text and shared insights from behind the scenes: “It wasn’t easy, as we were under considerable pressure to keep the text focused solely on emissions reduction and avoid direct mention of fossil fuels. Could it have been better? No doubt. But I welcome this important step. May this directive become a real guide for humanity from now on,” says Mirtilko.
Key Points
In one of its key highlights, Article 28 of the text recognizes the need for deep, rapid, and sustained reductions of greenhouse gas emissions consistent with a 1.5°C trajectory. It calls on the Parties to contribute to the following global efforts:
- Triple global renewable energy capacity and double the global average annual rate of energy efficiency improvement by 2030.
- Accelerate efforts to phase out non-renewable coal power.
- Accelerate global efforts to achieve net-zero emission energy systems using zero or low-carbon fuels well before or around mid-century.
- Move away from fossil fuels in energy systems in a fair, orderly and equitable manner, accelerating action in this critical decade to achieve net zero emissions by 2050, following scientific guidance.
- Accelerate the deployment of zero and low emission technologies, including renewables, nuclear energy, abatement and removal technologies such as carbon capture, utilization and storage, especially in hard-to-reduce sectors, and low carbon hydrogen production.
- Accelerate and substantially reduce global carbon dioxide emissions, especially methane emissions, by 2030.
- Accelerate the reduction of road transport emissions through a variety of means, including infrastructure development and the rapid deployment of zero- and low-emission vehicles.
- Phase out, as soon as possible, inefficient fossil fuel subsidies that do not address energy poverty or ensure a fair transition.
Carbon Market
Regarding the voluntary carbon market, several debates focused on project integrity, an issue of paramount importance for strengthening the market. In this context, the GHG Protocol, the Science-Based Targets Initiative (SBTi), the Voluntary Carbon Markets Integrity Initiative (VCMI), and the Integrity Council for Voluntary Carbon Markets (ICVCM) presented a framework to ensure high quality and integrity of initiatives.
On this topic, Felipe Bittencourt highlights what he heard from VCMI‘s CEO, Mark Kenber, during the panel “What is end-to-end integrity in the voluntary carbon market”: “we need to think about the integrity of the market as a whole, not only for project developers but also for all stakeholders, including buyers. Only then will the market gain trust and scale.”
Next Editions
The next editions of the Conference were also officially announced. Next year, COP29 will be held in Baku, located in Azerbaijan, which, like the United Arab Emirates, is also a fossil fuel producer. COP30 will be held in Brazil, in Belém (PA), from November 10 to 21, 2025.
Sources:
- UNFCCC: COP28 agreement signals beginning of the end of the fossil fuel era
- Reuters: COP28 crowds: dangerous distraction or sign of success
- Bloomberg: COP28’s Success Marks Just a Tiny Upgrade on COP27 Results
