Why does COP28 matter?

It might still feel like summer in London, but just as autumn rolls around, the annual Conference of the Parties—otherwise known as COP—comes squarely into view.

First held in Berlin in 1995, this year’s COP28 will be hosted in Dubai between November 30 and December 12 and promises a thematically organised program ‘geared towards responding to the Global Stocktake and closing the gaps to 2030’.  As McKinsey concisely summarises, this year’s event will provide a ‘comprehensive assessment of progress since the Paris Agreement’ and aims to measure the progress made toward the goals set at COP21. As a reminder, signatories to the 2015 agreement have committed to holding the global temperature increase to ‘well below’ 2C and continuing to actively pursue limiting heating to 1.5C.  

 Once outlined in this way, the scale, scope, and importance of these goals are clear—but why is COP specifically such an important stage? First and foremost, COP is the only forum dedicated to tackling climate change in which the opinions and concerns of the poorest country carry equal weight to those of the biggest economies. Second, decisions on action can only come by consensus, which means the decisions made at COP carry a truly global mandate. The strength of this consensus stems from the fact that all the world’s 196 nations—bar a handful of contested states—are signatories. In addition to delegates from UN states and representatives of ‘observer’ organisations (i.e. charities/NGOs), this year’s conference is also the first to expand stakeholder involvement to include high-emissions sectors, such as private sector oil and gas organisations. 

 In light of the impending conference, there has been significant progress towards ESG goals in the Middle East, with 64% of respondents to PwC research saying that their companies had adopted formal ESG strategies. ESG in property in the region is also gaining momentum, with Dubai-based developer Majid Al Futtaim borrowing through a $1.5 billion sustainability linked loan. This loan is contingent on meeting certain standards including gender diversity and certification of all retail assets to LEED Gold or higher. Closer to home, companies such as Berkley Group and Savills leading the way in recognising the growing importance of these commitments to investors—with the question of how to grow responsibly taking centre stage at MAPIC 2023.

 COP28 represents a vital setting to bring together global leaders from all over the world to “supercharge” global climate finance to make progress toward the $100bn promised to help poorer countries adapt to climate change. If significant progress can be made by donor countries at this year’s conference, then the UAE can establish itself as a genuine proponent of a greener future—and a more ambitious agenda for what countries should bring to COP.