- 28th UN climate meeting taking place between 30th November and 12th December
- More than $250 million pledged to support developing nations that are at risk from climate change.
- UAE launch $30 billion climate fund to bridge funding gap.
The 28th annual United Nations climate meeting, known as COP28, began yesterday and marks a significant event where governments discuss how to limit and prepare for future climate change. This year, the summit is being held in Dubai, up until 12th December. It is hoped that the event will help keep alive the goal of limiting long-term global temperature rises to 1.5°C.
There are a number of themes being covered in this year’s conference, including a loss and damage fund, protecting the world’s oceans, the phasing out of fossil fuels and increase in renewable output.
At last year’s event in Egypt a loss and damage fund was agreed in principle to provide financial assistance and help for developing nations that are most vulnerable to climate change. This year we have already seen meaningful pledges from nations involved, including $100 million from the UAE and Germany, $40 million from the UK and $17.5 million from the US.
Financial sector involvement
The Sustainable Finance Forum, one of the biggest finance sector events held alongside COP28, provides a platform for open communication with the finance sector. The event aims to enhance collaboration, foster dialogue, promote clear standards, and drive sustainable practices across asset classes and portfolios.
COP28 underscores the urgency for climate action and the need for the finance sector to play a significant role in the transition to a sustainable, low-carbon economy. The outcomes of COP28 will likely shape investment strategies and decisions in the years to come. Indeed, it was announced today that the UAE has established a $30 billion climate fund for climate solutions, intended to reach $250 billion by 2030, to bridge the finance gap.
As we have written before, we hold exposure to the sustainable energy sector across our ESG and Core mandates, as we believe momentum behind sustainability and renewable energy will continue to build. As investors and assets move into the sector, innovations in technology and the effectiveness and monetisation of these strategies will grow.