At the conclusion of COP28, countries released an agreement including a long-awaited decision to transition away from fossil fuels, along with a final global stocktake that will allow countries to develop climate action plans for the next two years.
The final agreement also features details for the newly established loss and damage fund, plans to increase climate financing, enhanced reporting transparency, and international collaboration, among other commitments.
Remarks from those in attendance at the conference indicate mixed opinions on the established goals -- some countries consider an agreement to "transition away" from fossil fuels a major win, while others call the agreement the "bare minimum," containing numerous loopholes.
While the final agreement does not contain a call to phase-out or phase-down fossil fuels as many countries had pushed for, it calls for “the beginning of the end” of the fossil fuel era. Specifically, it calls for a phase-out of inefficient fossil fuel subsidies and commitments to transition away from fossil fuels in global energy systems, calling for developed countries to take the lead.
Also during the conference, the Netherlands formed a coalition with several other countries to phase-out fossil fuel subsidies, which have kept fossil fuels economically competitive and therefore hinder the clean energy transition.
While considered a “diplomatic achievement,” many in attendance were disappointed by the lack of clear language surrounding fossil fuels included in the final agreement, including United States Climate Envoy John Kerry. Especially after a controversial OPEC statement calling for countries to avoid the words "phase-out" or "phase-down" concerning fossil fuels in a final agreement, many parties are wary of the final commitment. Small island nations were also reportedly not in the room when the decision was made.
"We didn't want to interrupt the standing ovation when we came into the room, but we are a little confused about what happened,” said Anne Rasmussen, Samoa representative according to Reuters. “It seems that you just get on with the decisions and the small island developing states were not in the room. We have come to the conclusion that the course correction that is needed has not been secured. We have made an incremental advancement over business as usual, when what we really need is an exponential step change in our actions."
The agreement admits that current financial pledges to help developing countries with energy transitions and adaptation efforts fall well short of the trillions reportedly required.
Nonetheless, additional financial commitments were made, with the Green Climate Fund now including $12.8 billion from 31 countries and $174 million added to the Least Developed Countries Fund and Special Climate Change Fund. A new goal of $100 billion per year in climate financing, including support for developing countries, was made as a “building block” towards achieving national climate plans by 2025.
The conference began with the establishment of a loss and damage fund to support developing countries as they take on the worst effects of climate change despite developed countries being the most responsible for emissions. The final agreement included more progress on this agenda, including plans to host a secretariat of the Santiago Network for Loss and Damage to provide technical assistance to vulnerable countries.
With most countries failing to deliver on Paris Agreement goals at present, the agreement calls for a “new era of implementing the Paris Agreement.” With a completed global stocktake revealing countries' progress so far, countries may decide upon further climate financing and emissions reduction pathways for the next two years.
