COP28 mobilises over $57b in first four days, setting pace for new era

In a powerful demonstration of global solidarity, governments, businesses, investors and philanthropies have announced over $57 billion (Dhs200 billion) across the climate agenda in just the first four days of COP28.

After a historic agreement to operationalise a fund for climate impact response on day one, announcements have poured in across the entire climate agenda, including on finance, health, food, nature, and energy.

On climate finance, the UAE has launched a $30 billion catalytic fund, ALTÉRRA, with an emphasis on unlocking private finance across the Global South. The country has also announced $200 million for SDRs and $150 million for water security. In addition, the World Bank has announced an increase of $9 billion annually to finance climate-related projects. And, in the first 48 hours of COP28, after a historic response to loss and damage was operationalised, $725 million has already been pledged.

In addition, $3.5 billion has been announced to replenish the Green Climate Fund, $2.7 billion has been pledged for health, $2.6 billion has been committed for food systems transformation, $2.6 billion has been pledged to protect nature, $467 million has been announced for urban climate action, and $1.2 billion has been committed for relief, recovery and peace.

On energy, $2.5 billion was mobilised for renewables and $1.2 billion for methane emission reduction. In addition, $568 million was pledged to drive investments in clean energy manufacturing.

In total, over $57 billion has so far been announced in the first four days. In addition, new pledges and declarations made at COP28 have received historic support. Eight new declarations have been announced that will help transform every major system of the global economy.

These include the first-ever declarations on food systems transformation and health, plus declarations on renewable energy and efficiency, as well as initiatives to decarbonise heavy-emitting industries.

Three additional declarations will be announced in the coming days on hydrogen, cooling, and gender. The number of countries supporting these declarations and pledges is growing and demonstrates an unprecedented level of inclusivity at this COP.

The full breakdown of pledges and declarations so far is as follows:

The Global Renewables and Energy Efficiency Pledge has been endorsed by 119 countries. The COP28 UAE Declaration on Agriculture, Food, & Climate has received endorsements from 137 countries. The COP28 UAE Declaration on Climate and Health has been endorsed by 125 countries.

The COP28 UAE Declaration on Climate Relief, Recovery & Peace has been endorsed by 74 countries and 40 organisations.

 The COP28 UAE Declaration on Climate Finance has been endorsed by 12 countries. The Coalition for High Ambition Multilevel Partnerships (Champ) Pledge has been endorsed by 64 countries. The Oil and Gas Decarbonisation Charter has been endorsed by 51 companies, representing 40 percent of global oil production.- The Industrial Transition Accelerator has been endorsed by 35 companies and six industry associations, including World Steel Association, International Aluminium Institute, Global Renewable Alliance, Global Cement and Concrete Association, Oil and Gas Climate Initiative, International Air Transport Association.

The COP28 Presidency is encouraged by the solidarity of parties and non-state actors who are stepping up to show political and financial support. The Presidency will continue to push all parties and stakeholders to step up with more action and more contributions.

Breakdown of financial pledges and contributions so far.

Meanwhile, Ajay Banga, President of the World Bank, underscored the significance of the ongoing 28th session of the UN Climate Change Conference (COP28), emphasising that the event has already made substantial progress in advancing climate action initiatives.

Banga, speaking to the Emirates News Agency (WAM) on the sidelines of the conference at Expo City Dubai, added, “COP28 is a very important conference because what it’s doing is not just bringing people together, but it provides certainty about the deadline that everyone wanting to make any real commitment must adhere to.”

He highlighted that the presidency of COP28, represented by Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President, has made remarkable efforts in bringing everyone together at one table, pointing out that since its inception, the conference has seen the issuance of many important and positive announcements.

Banga explained that during the Conference of the Parties, the extremely ambitious ALTÉRRA fund was announced, which is the largest investment fund to stimulate global climate action, with an initial capital of $30 billion, marking a new global achievement in boosting climate action efforts.

He stated that the World Bank also made good announcements during COP28, including financing for climate projects, connecting 100 million people in Africa to solar energy, efforts to reduce methane gas in highly specific projects, as well as voluntary carbon markets.

WAM