DUBAI, 04 December 2023 — The Brussels International Center (BIC) attended the fifth day of COP28, where discussions revolved around green finance, gender, trade, and accountability. Throughout the day the BIC actively engaged in productive discussions and followed groundbreaking announcements from global leaders.
Kicking off the morning session, HE Abdul Aziz Al Ghurair, Chair of the UAE Banking Federation, unveiled a historic pledge, announcing the collective commitment of the UAE Banking Federation to mobilize a monumental AED 1 trillion (approximately $270 billion) by 2030.
Setting the tone for the event, COP28 President Sultan Al Jaber revealed three declarations on hydrogen, cooling, and gender. In delivering the first-ever declarations on health and food systems, he underscored these priorities in the COP28 Presidency action agenda.
In a noteworthy move, the UAE banking sector made waves with a landmark commitment to collectively mobilize over $270 billion in sustainable finance by 2030.
In addition, France and Japan pledged support for the African Development Bank's breakthrough facility. This initiative leverages Special Drawing Rights (SDRs) for climate and development, directing additional resources where they are needed most.
While the Arab Energy Fund's commitment to invest up to $1 billion over the next five years in decarbonization technologies is undoubtedly a positive step, it is essential to acknowledge that more extensive measures are required to address the pressing challenges posed by climate change. While the initiative reflects a visionary approach, there remains a critical need to expand the scope of such efforts and implement flexible financing mechanisms, particularly targeting countries that are most vulnerable to the adverse effects of climate change.
The high-level dialogue concluded with the announcement of a new COP28 Gender-Responsive Just Transitions & Climate Action Partnership from the COP28 Presidency, which garnered endorsements from over 60 Parties. The Partnership included a package of commitments, encompassing actions on data, finance, and equal opportunities. Implementation was scheduled for review at a second convening during COP31.
Anticipation builds as Canada, Brazil, and Egypt prepare to announce new methane regulations during the COP28 climate summit. With 155 countries onboard, the Global Methane Pledge signifies a voluntary commitment to collectively reduce methane emissions by 30% from 2020 levels by 2030.
Despite positive developments in climate finance, concerns persist about carbon markets being inaccurately presented as a substitute for genuine climate finance, raising apprehensions about the effectiveness of mitigating climate change. While carbon markets focus on emissions trading, climate finance involves funding projects that mitigate or adapt to climate change impacts.
Throughout the day, the BIC team actively participated in various events addressing climate finance, gender, and accountability. They showcased their research on just transition and engaged with academia, ministers, and the United Nations, fostering dialogue and collaboration on critical issues in the realm of climate action.