COP28 ends with compromise to move away from fossil fuels
Almost 90,000 delegates attended this year's climate summit, and it is worth noting that more representatives of the oil industry were present than the total number of delegates from the ten countries most affected by climate change.
"The UAE Consensus, which refers to the move away from all fossil fuels in an unprecedented way, represents a paradigm shift that has the potential to redefine our economies," Sultan Ahmed Al Jaber, the summit's chairman and also head of the state oil company, said on social media. Dubai, as part of the United Arab Emirates, has hosted the conference over the past two weeks against a backdrop of controversy, geopolitical conflict and increasing extreme weather events.
So what were the concrete resolutions and findings of COP 28?
A fair, orderly and balanced transition away from fossil fuels in energy systems, accelerating action in this decade to achieve net zero by 2050 in line with scientific evidence.
Accelerated efforts to phase out unabated coal-fired power generation, a tripling of global renewable energy capacity and a doubling of the average annual rate of improvement in energy efficiency by 2030.
Financial support for countries in the Global South that are most affected by the impact of the climate crisis. For example, Austria will contribute 35 million euros and Germany more than 90 million euros to this support.
An interim assessment of the achievement of the Paris climate targets showed that the majority of countries have not reached the targets they set themselves for reducing greenhouse gases.
It was once again made clear that achieving the 1.5 degree target is crucial in order to avoid further serious global consequences.
A critical point to note is that the proposal does not prescribe an absolute phase-out of fossil fuels. A so-called "phase-out" commitment would probably have required a total move away from fossil fuels, while the so-called "phase-down" agreement means a reduction in their use - but not an absolute end.
Many participants at the conference, particularly representatives of the EU, were of the opinion that the COP 28 summit could only be considered a success if it had led to an agreement on the phase-out of all fossil fuels. The burning of coal, oil and gas is the biggest contributor to climate change and is responsible for more than three quarters of global greenhouse gas emissions. - An earlier draft text published in the final stages of the talks was widely criticised for not including wording on ending the use of fossil fuels.
Not all feedback on the compromise reached was positive, as the summit's decision does not provide for an exit. For this reason, the outcome of the climate summit is also disappointing for Raiffeisen Capital Management. The hope now lies in the next climate summit COP29 in Azerbaijan, namely that a corresponding resolution will be reached there.
By joining the Net Zero Asset Managers Initiative (NZAM) last year, Raiffeisen Capital Management committed to aligning its portfolios with the "net zero" target by 2050 in line with the Paris climate targets. This commitment also includes clear interim targets, compliance with which is audited externally. To date, Raiffeisen Capital Management's portfolios are clearly on a long-term phase-out path, whereby short-term targets have been exceeded. This includes, for example, the gradual exit from companies with shares in coal mining, energy generation from coal and the transport of coal, as formulated in Raiffeisen Capital Management's coal policy.