The “UAE Consensus” that emerged at COP28 included language around "Transitioning Away" from fossil fuels for the first time. What will be the realistic impact of this language on future climate policy? Progress was also made on methane abatement and pledges around accelerating renewable energy and nuclear development. However, progress on voluntary carbon markets and financing fell short of expectations. How has COP28 impacted the future trajectory of global climate policy and what challenges remain to be resolved?
Decarbonizing the global economy will require the transformation of existing energy systems and a large-scale development and deployment of low-carbon technologies. The path to a low-carbon economy is still to be determined and the energy mix of the future is being influenced by government and corporate decisions today. Renewable power, carbon removal, hydrogen and other technologies are competing for market share and different industries are looking to different solutions. Can everything be electrified with cheap renewable power? How can technologies like carbon capture and hydrogen become more competitive? What role will governments play in shaping decarbonization pathways?
Voluntary carbon markets (VCM) will play a critical role in the path to net zero. However, challenges with transparency and integrity represent a major hurdle toward strong and functioning global voluntary carbon markets. Participants were looking to COP28 to provide guidance that would alleviate these lingering issues, but no progress was made at COP. What policy prescriptions and strategies would improve confidence and participation and make for stronger functioning carbon markets?