COP28 breaks records with $57 billion in climate deals

In case you missed it, this week Dubai has been hosting the COP28 World Climate Summit. And if you did, have you been sleeping under a rock because the city’s been glimmering bright in celebration of welcoming multiple world leaders ahead of this dynamic event.

Still not sure what COP28 is? Let us break it down - COP28, the 28th Conference of the Parties to the UN Framework Convention on Climate Change, is a summit where aims are made to progress on tackling climate change.

This year, it has kicked off with a resounding bang. In just four days, this monumental gathering has seen an unprecedented surge of climate deals, with a staggering $57 billion (AED 209 billion) committed to various climate initiatives.

Let us break down all those initiatives for you…

Why does COP28 matter?

COP28 holds monumental significance all over the world, as nations unite to revive momentum and plan ambitious climate actions moving forward. Set against the backdrop of environmental challenges, governments, businesses, investors, and philanthropists come together to address the pressing climate crisis globally.

The financial fervour

The financial commitments announced during the initial four days are nothing short of extraordinary!

A collective effort amongst world governments, businesses, and investors has resulted in a formidable show of support for the climate agenda. These pledges have echoed a powerful message of global solidarity.

We’ll break down the top announcements for you:

Key announcements:

1. Climate finance released by the UAE:

The United Arab Emirates has spearheaded the charge with the launch of ALTÉRRA.

This is a $30 billion catalytic fund which is aimed at unlocking private finance across the Global South. In addition, the UAE has also committed $200 million for Special Drawing Rights (SDRs) and $150 million for water security.

2. World Bank boosts climate finance:

The World Bank has stepped up by announcing an annual increase of $9 billion to finance climate-related projects, emphasising its commitment to combating the climate crisis.

3. Green climate fund replenishment:

A notable $3.5 billion has been released to replenish the Green Climate Fund, which will work toward fortifying the financial arsenal dedicated to climate action.

4. Sector-specific commitments:

Across various sectors, significant amounts have poured in, including $2.7 billion for health, $2.6 billion for food systems transformation, $2.6 billion to protect nature, $467 million for urban climate action, and $1.2 billion for relief, recovery, and peace.

5. Energy revolution:

Energy takes centre stage with $2.5 billion mobilised for renewable resources and an additional $1.2 billion allocated toward the reduction of methane emission.

Historic declarations:

Beyond the financial pledges, COP28 witnesses the announcement of historic declarations that promise transformative change across major global systems. These declarations cover diverse areas such as food systems transformation, health, renewable energy, efficiency, and initiatives to decarbonize heavy-emitting industries.

Inclusivity all around

A noteworthy aspect of COP28 is the unprecedented inclusivity, with an increasing number of countries endorsing these declarations. This reflects a remarkable global effort to tackle climate challenges collaboratively.

The path forward for COP28

COP28's presidency, encouraged by this display of solidarity, urges all parties and stakeholders to continue stepping up their actions and contributions. As the summit progresses, the focus remains on fostering a collective commitment to meaningful climate solutions.

Financial breakdown of pledges:

• Loss and Damage: $725 million
• Green Climate Fund: $3.5 billion (second replenishment increased to $12.8 billion)
• Renewable Energy: $2.5 billion
• Technology: $568 million
• Methane: $1.2 billion
• Climate Finance: Over $30 billion from the UAE (plus $200 million in Special Drawing Rights and an annual increase of $9 billion from the World Bank)
• Food: $2.6 billion
• Nature: $2.6 billion
• Health: $2.7 billion
• Water: $150 million
• Relief, Recovery, and Peace: $1.2 billion

In these dynamic and pivotal four days, COP28 has set a remarkable tone, showcasing the world's commitment to combating climate change and forging a sustainable path forward. The financial pledges and declarations reverberate as a testament to the collective will to create a resilient and climate-friendly future.

How impressive?

Curious to know more about the COP28 summit? Click here to read all about it.