The United Nations Climate Change Conference (COP28) in Dubai is fast approaching, bringing with it heightened expectations for meaningful action on climate finance. With the Global South facing a significant shortfall in funding for mitigation and adaptation efforts, the spotlight is on the United Arab Emirates (UAE) to spearhead a bold initiative that could bridge this gap.
This year’s conference comes on the heels of a summer marked by extreme weather events—droughts, floods, and wildfires—that have underscored the urgency of addressing climate change. However, pre-summit negotiations on establishing a Loss and Damage Fund to support the world’s most vulnerable countries have stalled. While it has been decided that the fund will be housed at the World Bank for four years, there is still no consensus on the responsibilities of historic emitters, nor have substantial financial commitments been made.
Sultan Al Jaber, president of COP28 and CEO of the Abu Dhabi National Oil Company, faces the crucial task of breaking this impasse. He has pledged to develop a funding plan to address the Global South’s estimated $1 trillion annual shortfall in climate financing. Al Jaber’s unique position allows him to influence both the energy sector and international climate policy.
The UAE could play a pivotal role by encouraging the world’s wealthiest oil-exporting nations to contribute a 3% voluntary levy on their 2022 windfall revenues from oil and gas exports. Such a measure could raise approximately $25 billion, providing much-needed capital to mobilize further investment from developed economies and multilateral development banks.
In previous communications, Al Jaber has emphasized the importance of leveraging state guarantees to attract private capital, highlighting innovative financial mechanisms as a way forward. By promoting large-scale state-guarantee schemes, he aims to unite governments, private investors, and stakeholders in a collective effort to tackle the climate crisis.
As both a leader in the fossil fuel industry and the president of COP28, Al Jaber has the opportunity to lead by example. A significant contribution from the UAE and other major oil-exporting countries could signal a commitment to equitable climate action and set the tone for the conference’s outcomes.
The success of COP28 may well hinge on the ability of its president to navigate these challenges and deliver a financing model that addresses the needs of the Global South. The world watches as the UAE considers steps that could reshape climate finance and invigorate global efforts to combat climate change.
Reference(s):
cgtn.com
