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The first Global Stocktake
COP28 in UAE welcomed world leaders from almost 200 nations. It concluded the Global Stocktake and confirmed the actions of each country to tackle climate change.
The consensus includes:
- A transition away from fossil fuels in an orderly and equitable way in line with the science
- Tripling renewable energy capacity and doubling energy efficiency by 2030
- Reducing methane emissions, reducing emissions from transport, and switching to zero and low-carbon fuels by 2050
- Food systems transformation and nature-climate integration to solve the climate crisis
Additionally, a total of 85 billion USD was pledged by world’s governments to support the delivery of these commitments. Countries are now expected to review and set new Nationally Determined Contributions (NDCs) following the call to action.
Shift towards low-carbon energy
The world is moving towards low-carbon energy sources, focusing on renewables, however clean hydrogen and nuclear energy are recognised to be forming a part of the solution. Businesses were sent a clear signal to consider the opportunities and risks of incorporating renewable energy into their operations and decarbonisation strategy.
As a consequence of the COP 28, governments may feel more inspired to introduce new energy and related policies while financial institutions to prioritise investments in low carbon energy technologies and projects. Which in turn, will impact global energy markets and supply chains.
Taskforce on Net Zero Policy
In support of the creation of effective policy and regulatory frameworks to meet the net-zero commitments and incentivise businesses to create transition plans the Taskforce on Net Zero Policy has been formed at COP28.
The UN’s intention is to hold non-state entities accountable for their emissions reduction commitments which will rely on them developing a clear strategy and transition plans to decarbonise their business operations. The Net Zero Data Public Utility – a new global repository of corporate data on climate change – will track all publicly disclosed transition plans and climate related commitments.
Reporting landscape
In the reporting landscape the efforts to consolidate continue. At COP28, the Task Force on Climate-related Financial Disclosures (TCFD) was officially disbanded, with the IFRS Foundation’s International Sustainability Standards Board (ISSB) taking over the TCFD’s responsibilities.
A global call to include nature into climate reporting are gaining momentum. This focus on nature alongside climate will impact future reporting requirements and stakeholders’ expectations.
Looking ahead
A global call to include nature into climate reporting are gaining momentum. This focus on nature alongside climate will impact future reporting requirements and stakeholders’ expectations. COP29 will be held in 2024 in Azerbaijan and is widely expected to have a strong focus on nature and climate finance.
