COP28, the annual UN climate conference, will convene from 30 November to 12 December 2023 in Dubai, United Arab Emirates (UAE). As indicated by the Intergovernmental Panel on Climate Change (IPCC) Synthesis Report and the World Meteorological Organisation, COP28 is a critical moment to define how the world will safeguard the planet’s liveability and course correct in global climate action.
Why COP28 matters
COP28 represents a significant – and perhaps final– opportunity for Parties and non-state actors to scale up action to deliver on the Paris Agreement. As made clear by the IPCC, the “choices and actions implemented in this decade will have impacts for thousands of years.”
The conference is taking place against a backdrop of insufficient action taken at previous COPs to close the ‘ambition gap’ between what is being proposed in Nationally Determined Contributions (NDCs) and what is actually being delivered through current policies to keep global warming below 1.5 degrees. Meanwhile, the mounting impacts of climate change – floods and droughts, hurricanes, and heatwaves – are already taking a major toll on human lives, economies, and livelihoods globally.
Achieving the transition to economies that are net zero and climate resilient requires strong public and private sector leadership and collaboration. The financial sector will play a vital role at COP28 by demonstrating credible action to achieve net zero emissions and advocating for ambitious policy action that will support the goals of the Paris Agreement.
What’s on the agenda
We expect the following issues, relevant for responsible investors, to be on the agenda at the COP28. We will update this section as discussions evolve on these topics in the lead up to COP28.
Measuring Progress
The Global Stocktake enables countries and other stakeholders to take stock of progress to achieve the Paris Agreement. Each stocktake is a two-year process that happens every five years. It has three key themes: climate mitigation, adaptation and implementation. The first GST got underway at COP26 in Glasgow and will conclude this year at COP28. This makes COP28 a key moment to identify opportunities to step up climate action and international support, with finance being a critical lever in fulfilling climate commitments.
Mobilising Climate Finance
The New Collective Quantified Goal (NCQG) will set a new climate finance goal that sufficiently responds to the needs of developing countries. This new goal will replace the commitment set in 2009 to mobilise USD100 billion per year (which has not been met and expires in 2025). The goal focuses on both the amount of, and the mobilisation and provision of financial resources.
Closely linked to the NCQG is Article 2.1(c) of the Paris Agreement, the “apex goal” of climate finance: making financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. Achieving Article 2.1(c) will entail a fundamental reform of the global financial architecture (more below), as the capital required to tackle today’s interconnected crises is beyond the capacity of public or private sector alone, making this a highly relevant topic for responsible investors.
Action on Nature
COP28 is the first climate COP since the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF) by 196 countries in December 2022, guiding action in global efforts to halt and reverse biodiversity loss by 2030. As climate change and biodiversity loss are intrinsically linked, meeting the goals and targets of the GBF will contribute to climate mitigation and adaptation – with at least 70% of the GBF targets estimated to directly or indirectly help governments and non-state actors deliver on the Paris Agreement.
COP28 is an opportunity to understand the extent to which nature is being embedded within countries’ NDCs and the progress made on updating their National Biodiversity Strategy and Action Plans following the adoption of the GBF. It is also an opportunity for financial institutions to demonstrate credible action on the climate-nature nexus (e.g. on addressing deforestation) and key asks for policymakers and other stakeholders
Advancing Climate Adaptation
The 2015 Paris Agreement established a Global Goal on Adaptation to enhance adaptative capacity, strengthen resilience and reduce vulnerability to climate change. To achieve this goal, Parties created the two-year Glasgow-Sharm el-Sheikh work programme on the Global Goal on Adaptation at COP 26 in Glasgow in 2021. Parties agreed to work on the framework with the aim of adopting it by COP28. The adaptation-finance nexus remains key for COP28, with anticipated discussions around the goal to double adaptation finance and support the implementation of adaptation actions as set in NDCs and National Adaptation Plans (NAPs).
Ensuring a Global Just Transition
The transition to a low greenhouse gas emissions climate-resilient economy can only be achieved by assessing, addressing, and minimising social risks, capturing and maximising social opportunities, and engaging with affected stakeholders in its process. To accelerate the just transition globally, international financial institutions are mobilising and aligning financing to support the deployment of renewable energies for countries under the Just Energy Transition Partnerships. Realising a just transition on the global scale also requires reforming the global financial architecture, as mentioned above. The stability and fit-for-purpose of the global financial system are highly relevant for responsible investors, not only in the case of mobilising and aligning financial flows to emerging markets and areas most in need, but also in strengthening the broader global finance policy agenda.
For information related to thematic days at COP28 and priorities that the COP Presidency has set, please visit here.
PRI’s role at COP 28
PRI’s work focuses on convening government leaders and investors on ambitious climate action in line with the goals of the Paris Agreement. We do this by supporting credible investor action in line with fiduciary responsibilities; elevating the voice of the financial sector to policymakers and wider stakeholders; facilitating investors to engage directly with the COP28 events and meetings; and tracking key developments for our signatory base.
How to participate in COP28
Find out more from the UNFCCC and COP28 Presidency, and Pathway to COP28 UAE on participating at the Conference.
The PRI cannot provide accreditation for signatories – we encourage signatories to get in touch if they do have accreditation. This year, the UNFCCC will be providing both in-person and virtual participation to the Conference for accredited organisations.
Additional Resources
- Reforming the multilateral financial architecture: why, how and the case for acting now
- Policy briefing: The role of the G7 in sustainable finance and economic transition policy reforms
- PRI response to UNFCCC Standing Committee on Finance regarding ways to achieve Article 2, paragraph 1(c), of the Paris Agreement, including options for approaches and guidelines for implementation
- PRI response to the TNFD’s consultation on the fourth (vo.4) iteration of its beta framework
- Stepping Up on Biodiversity: What the Kunming-Montreal Global Biodiversity Framework means for responsible investors
- Net-Zero Asset Owner Alliance Position on the Oil and Gas Sector
Where to find the PRI and partners at COP28: Event listing
We will update this section as more information regarding in-person and virtual events becomes available for signatories to engage and participate in.
PRI will be co-convening/participating in various “official” UNFCCC side events at COP28. We will also be showcasing our thought leadership at various pavilion events (more information below coming soon). These events will focus on investor action towards net zero, enabling policy and regulatory environments for finance mobilisation and alignment, the nature-climate nexus, and other priority issues.
