Blue Zone
Accelerating Climate Finance: Launch of The Global Climate Finance Centre
Aligning with the UAE Declaration on a Global Climate Finance Framework to foster a sustainable finance leadership and expertise, the recently established Global Climate Finance Centre (GCFC), formed in collaboration with nine founding members, including the World Bank, HSBC, and BlackRock is set to be headquartered in Abu Dhabi Global Market, an award-winning international financial center located on Al Maryah Island in the heart of the UAE’s capital city Abu Dhabi.
The GCFC is an independent think-tank and research hub, with an aim to overcome barriers hindering investments by developing internationally aligned financial frameworks. Headquartered in Abu Dhabi Global Market (ADGM), the GCFC, announced by COP28 President Dr. Sultan Al Jaber, focuses on three core functions: Research, Policy, and Innovation, facilitating cutting-edge research and best practices; Advisory and Stakeholder Engagement, bringing together public and private stakeholders to address impediments; and the Climate Finance Academy, providing training modules and courses to build expertise.
Global Islamic Finance Program
The Global Islamic Finance Program (GIFP) for Climate, Nature, and Development revealed its Advisory Committee, featuring HSBC, Standard Chartered Bank, Securities Commission Malaysia, Simmons & Simmons, Ajman University, and WWF. Spearheaded by WWF International and Ajman University-Centre for Excellence in Islamic Finance, GIFP aims to mobilize public and private Islamic capital, originating and funding Nature-based Solutions. The program, with an initial target size of $1.5 B and a long-term goal of mobilizing $30-100 B annually, will commence phased implementation by Q4 2024.
The initiative, originating from the Global South, aligns Islamic finance with climate and environmental goals, tapping into the $3 T of global Islamic financial assets. GIFP addresses the financing gap for climate and nature initiatives, focusing on the Global South and seeking to deliver nature-positive, climate-resilient economic development. Consultation with global Islamic finance stakeholders, multilateral development banks, UN bodies, regulators, and private impact infrastructure development entities contributed to the design and blueprint of GIFP. The program leverages insights from WWF initiatives, contributing to a pipeline of bankable Nature-based Solutions projects using a blended finance approach.
Innovative Financial Mechanisms Unlocked
Marked progress was achieved in reforming international financial architecture to support low-income and vulnerable nations in their fight against climate change. Notably, major global institutions, including the UK, France, World Bank, IDB, EIB, EBRD, and AfDB, made commitments to expand Climate-Resilient Debt Clauses (CRDCs) in their lending, with 73 countries advocating for increased utilization of these clauses by 2025.
CRDCs, instrumental in providing fiscal relief during climate catastrophes by pausing debt service, received backing from the UK, which introduced the first-ever climate-resilient debt clause to Senegal, and the IDB, which allocated $1.2 billion in loans covered through CRDCs. The World Bank also committed to offering CRDCs in existing loans. Furthermore, Japan and France pledged support for the African Development Bank’s facility leveraging Special Drawing Rights (SDRs) for climate and development, and a hybrid capital-based mechanism for channeling unused SDRs through MDBs was introduced by the AfDB and IDB.
These initiatives align with the COP28 UAE Declaration on a Global Climate Finance Framework, aiming to make climate finance accessible, available, and affordable. The innovative financial instruments introduced at COP28 hold the potential to provide space for countries to invest in climate resilience and recovery.
Restoring Confidence in Voluntary Carbon Markets
The COP28 Presidency collaborated with GFANZ, World Bank Group, and UNFCCC to restore credibility and confidence in Carbon markets. The highest level governmental and institutional leaders were convened to publicly recognize high-integrity Carbon Markets as a catalyst for climate action and support Voluntary Carbon Markets (VCMs) as a critical tool in the corporate net-zero journey. This gathering drove momentum in the market and inspired other private sector and governmental leaders to join this critical initiative.
Unveiling the Crucial Role of Trade: Trade Solutions for Global Climate Action
On December 2, during the third day of COP28, Dr. Thani bin Ahmed Al Zeyoudi welcomed global trade leaders to the Trade House pavilion in Dubai’s Expo City. It marked the first inclusion of trade in the official program of the climate conference. In collaboration with the World Trade Organization (WTO), the International Chamber of Commerce, the International Trade Centre, and the United Nations Conference on Trade and Development, the pavilion is was set to host discussions on the role of trade in achieving the Paris climate accords. The opening session featured key figures like Dr. Ngozi Okonjo-Iweala and John W.H. Denton AO, emphasizing the central role of trade in the global climate debate.
The Trade House pavilion was officially launched on December 4, during the fifth day of COP28, with a program reflecting the significant impact of trade on the global economy and its role in climate action efforts.
Roadmap of Trade Policy Options
Global leaders joined forces to advance a “menu” of trade policy options, a collaboration between the COP28 Presidency, the UAE Ministry of Economy, and the World Trade Organization. The primary objectives were to inspire nations to integrate these options into their national policies for a climate-friendly global economy. Leaders emphasized the crucial role of international trade in areas such as job creation, entrepreneurship, and poverty alleviation. COP28 aimed to elevate the role of the international trade community in climate policy, launching the WTO-led Menu of Trade Policy Options to bolster ambitious and credible climate action efforts. Ongoing discussions were anticipated, particularly after International Trade Day, with a continuation during the UAE’s hosting of the WTO’s 13th Ministerial Conference (MC13) in February 2024. The outcome included the announcement of the “10 Trade Policy Tools for Climate Action,” led by the WTO Secretariat.
Ensuring a Gender-Responsive Just Transition & Climate Action
In support of women’s economic empowerment, discussions led by UN Climate Change High-Level Champion Razan Al Mubarak resulted in the announcement of the COP28 Gender-Responsive Just Transitions & Climate Action Partnership, endorsed by over 60 Parties. This initiative focuses on commitments related to data, finance, and equal opportunities and will be reviewed during COP31. With 1.2 billion jobs, representing 40% of the global workforce, at risk due to climate change, the partnership aims to address the disproportionate impact on women. It centers on improving data for transition planning, enhancing finance flows to climate-impacted regions, and providing education and capacity building. Razan Al Mubarak highlighted the need for financial reform and investment in women’s economic empowerment to counter existing gender inequalities exacerbated by climate change.
The partnership aligns with the UNFCCC Gender Action Plan, emphasizing quality data, effective finance, and capacity building. UN Women Executive Director Sima Bahous emphasized the importance of women’s rights in climate action, particularly in addressing the predicted increase in women and girls pushed into poverty by climate change. Closing the gender data gap is seen as critical for tailoring climate finance to the specific needs of women and girls, especially in vulnerable regions.
Accelerating Action: Private Sector Accountability and Regulation for Net-Zero Transition
The COP28 presidency announced the successful conclusion of the Net-Zero Accountability and Regulation Event at COP28. The event navigated discussions concerning the accountability and regulatory frameworks essential for a sustainable and equitable transition. In the backdrop of escalating global commitments to combat climate change, the concluded event emphasized the pivotal role of the private sector in spearheading the transition to a decarbonized economy. The robust planning undertaken by the private sector was highlighted as a significant contribution to the development and execution of Nationally Determined Contributions (NDCs) and national decarbonization pathways. Furthermore, it served as a strategic tool for attracting capital flows to both companies and countries involved in the transition efforts.
Bridging the Blue and the Green Zone through Abu Dhabi Sustainability Week
Abu Dhabi Sustainability Week (ADSW), held under the patronage of HH Mohammed Bin Zayed Al Nahyan, President of the UAE, is making a significant impact at COP28 with its Special Edition. Throughout COP28, ADSW will provide a platform, bridging the blue and green zones by promoting collaboration and thought leadership, enabling timely, relevant climate action conversations to accredited parties, observer delegates, and the public.
Leaders from finance, investment, business, public sector, and civil society are brought together to expedite the just transition to a net-zero future. Themed “United on Climate Action at COP28,” ADSW featured keynote speeches and panel discussions addressing sustainable investments, climate innovations, and financial inclusion for a just transition. With sessions focused on tangible outcomes, the ADSW set the stage for roundtable discussions and initiatives beyond the event.
Green Zone
A WISE Investment in Women’s Climate Leadership
Monday was Gender Day at COP28, and the U.S. Government announced a significant investment of $1.4 billion in the Women in the Sustainable Economy Initiative. First launched by Vice President Kamala Harris, WISE is designed to enhance women’s access to employment, training, leadership roles, and financing in green and blue industries. The initiative aligns with the U.S. National Strategy on Gender Equity and Equality and aims to advance gender equity in climate change mitigation and response. This announcement included a range of initiatives to address gender equality in climate resilience and preparedness, as well as promoting women and girls’ leadership in climate issues.
Initiatives include loans and projects in India, Morocco, and Bangladesh, as well as programs in the Middle East, North Africa, Southeast Asia and the Pacific.
Promoting Women’s Climate Resilience in Morocco
This $2 million investment, developed in collaboration between the USAID and the Government of Morocco, focuses on promoting climate adaptation best practices. It aims to strengthen local systems to become resilient to climate change, particularly for women and girls. The program includes economic growth and governance programming to support these goals.
Focus on Sustainable Finance and Trade
The day’s agenda highlighted the need for macro-level reforms in international financial architecture, the development of sustainable financial markets, and the strengthening of voluntary carbon markets. The sessions aimed to boost private sector financing, enhance equity, and foster an equitable and intelligent approach to trade growth, focusing on decarbonizing supply chains.
A pivotal discussion unfolded among global financial leaders, emphasizing the need for a fundamental rethinking of financial systems to address climate change. Larry Fink, CEO of BlackRock Inc., called for a transformation in the way capital is channeled, advocating for a shift towards investments that directly combat climate change. This call to action reflects the undeniable growing consensus on the need for systemic change to achieve sustainable and equitable financial outcomes.
In parallel, the World Bank, under the leadership of Ajay Banga, is capitalizing on the momentum at COP28 to reinforce its commitment to climate finance. The Bank is focusing on scaling up its climate finance initiatives, with a keen interest in restoring the credibility of carbon markets. This approach signifies a broader shift in the financial sector towards more responsible and sustainable investment strategies.
Climate Action Innovation Zone
Charting the Course: The Crucial Role of the Sustainable Innovation Forum at COP28 in Dubai
For the third consecutive year, the Climate Action Innovation Zone is set to run alongside the Conference of the Parties (COP), creating an independent platform for cross-sector collaboration. Organized by Climate Action in collaboration with various partners, the Innovation Zone aims to mobilize the innovation ecosystem and facilitate concrete climate action during COP28. This inclusive, free-to-attend zone brings together leaders and practitioners from business, finance, cities, regions, and countries to drive climate action at speed and scale.
Nick Henry, CEO and Founder of Climate Action, emphasizes the urgency of addressing climate change’s impact, particularly in SIDS and vulnerable regions. The Island of Hope at the Innovation Zone aims to shed light on solutions, finance, and policies that can mitigate climate impacts while sharing positive stories of hope at COP28.
Forging a Sustainable Future: The Impactful Role of the Sustainable Innovation Forum at COP28 in Dubai
The Sustainable Innovation Forum, a flagship event of the Climate Action Innovation Zone, is poised to play a crucial role at COP28 in Dubai from December 4-5. In the face of the urgent climate crisis, the Global Stocktake at COP28 becomes a pivotal moment to assess progress toward the Paris Agreement objectives. Anticipating 80,000 delegates from government, private sector, and finance, the forum aims to synchronize actions and address existing gaps, calling for immediate collective efforts.
For 14 years, Climate Action has been a unifying force, convening sustainability leaders at the largest multi-stakeholder event at COP, the Sustainable Innovation Forum. This year’s forum, taking place in Dubai, aligns with COP28’s theme of transformative innovation, focusing on advancing a nature-positive, net-zero, just, and equitable global economy.
The Sustainable Innovation Forum 2023, expected to host 1,000 leaders from various sectors, provides a unique opportunity to make a tangible impact at COP28. With a majority C-suite audience, the forum facilitates cross-sector partnerships, showcases effective business action, mobilizes green finance, and highlights innovative solutions aligned with climate-related Sustainable Development Goals. Industries represented include Energy & Utilities, Mobility & Transport, Construction & Built Environment, and more.
Key organizations and government bodies, including Accenture, Barclays, Google, UNFCCC, and Volkswagen, among others, will be actively participating. The diverse job titles encompass CEOs, Chief Sustainability Officers, Directors of Climate Finance, and Heads of ESG, creating a comprehensive network of expertise.
Speech by Romanian President Klaus Iohannis at the “Sustainable Innovation Forum 2023” event
President Klaus Iohannis, at the Sustainable Innovation Forum 2023, reiterated Romania’s commitment to green technologies and global green value chains. Highlighting the nation’s achievements in emission reduction and economic growth, he emphasized Romania’s role in manufacturing green technologies, particularly in wind and battery production. President Iohannis praised Romania’s dynamic green innovation landscape, citing advancements in sustainable materials and energy-efficient technology. He also underscored Romania’s active participation in initiatives like the Agriculture Innovation Mission for Climate. The president commended the EU’s leadership in climate initiatives and stressed the importance of technology transfer for effective global climate action. Romania’s recent inclusion in the Digital for Development Hub reflects its commitment to supporting sustainable projects. President Iohannis emphasized citizens’ crucial role in combating climate change and called for global collaboration in addressing these challenges. The context of the Sustainable Innovation Forum 2023 adds significance to Romania’s contributions to transformative climate action.
Bluewater Joins Forces with Climate Action at COP28 to Champion Plastic-Free Events
Bluewater has partnered with Climate Action at COP28 to revolutionize water access during major events. As the Official Hydration Partner, Bluewater will offer free, pure, and healthier water through strategically placed dispensers at the Climate Action Innovation Zone from December 4 to 8. This collaboration aims to eliminate single-use plastic bottles, aligning with COP28’s sustainability focus. Using advanced water purification technology, Bluewater seeks to set a new standard for eco-friendly hydration. VIPs and speakers will receive custom stainless steel refillable bottles, emphasizing the commitment to sustainability. This initiative builds on Bluewater’s successful track record in reshaping water access at global events, contributing to environmental stewardship. Bluewater and Climate Action are pioneering a plastic-free future at COP28.
References:
1. https://www.cop28.com/en/news/2023/12/COP28-President-recaps-key-wins-from-first-four-days-of-COP28
2. https://www.forbesmiddleeast.com/sustainability/climate-change/emirati-banks-pledge-%24270b-in-green-finance-at-cop28-climate-talks
3. https://www.reuters.com/sustainability/cop28-abu-dhabi-teams-up-with-hsbc-others-climate-finance-think-tank-2023-12-04/
4. https://www.prnewswire.com/ae/news-releases/global-centre-launched-to-accelerate-climate-finance-302004475.html
5. https://wwf.panda.org/?10271391/Progress-on-Global-Islamic-Finance-Program-to-mobilize-capital-for-climate-nature-and-development
6. https://www.cop28.com/en/schedule/unlocking-high-integrity-carbon-markets
7. https://unctad.org/meeting/cop28-trade-day-event-leveraging-sustainable-finance-trade-create-sustainable-future-all
8. https://unctad.org/meeting/cop28-trade-day-event-global-leaders-unite-promote-roadmap-trade-policy-options-just-and
9. https://www.zawya.com/en/economy/gcc/uae-welcomes-trade-leaders-to-first-ever-trade-pavilion-at-cop28-l2e4j1cf
10. https://cop28.com/en/news/2023/12/COP28-launches-partnership-to-support-women-economic-empowerment
11. https://www.cop28.com/en/schedule/accelerating-action-private-sector-accountability-regulation-for-net-zero-transition
12. https://cop28.com/en/schedule/abu-dhabi-sustainability-week
13. https://www.paudal.com/2023/12/04/finance-trade-and-gender-equality-star-in-the-cop28-day/
14. https://www.bloomberg.com/news/articles/2023-12-04/cop28-latest-bankers-start-talks-with-all-options-on-the-table?srnd=green-united-nations-climate-summit&leadSource=uverify%20wall
15. https://www.bloomberg.com/news/articles/2023-12-04/world-bank-chief-hails-cop28-momentum-as-climate-pledges-mount?srnd=green-united-nations-climate-summit&leadSource=uverify%20wall
16. https://www.state.gov/at-cop28-a-wise-investment-advancing-womens-participation-in-climate-efforts/#:~:text=On%20December%204%2C%202023%2C%20Gender,since%20the%20launch%20of%20WISE
17. https://www.energyupdate.com.pk/2023/12/04/clashes-over-fossil-fuels-gaza-war-at-cop28-climate-summit/
18. Climate Action Innovation Zone opens at COP28, Dubai – Climate Action Innovation Zone COP28 (cop-28.org)
19. About | Sustainable Innovation Forum | COP28 (climateaction.org)
20. Iohannis, at COP28: Romania is an increasingly attractive host for green technologies manufacturing | AGERPRES • Actualizează lumea.
