The annual United Nations (UN) climate change meeting, also known as the ‘Conference of the Parties’ or ‘COP’, will kick off in less than just two weeks, from 30 November to 12 December, in Dubai, the United Arab Emirates (UAE).

Traditionally, COPs bring together leaders of states that signed the United Nations Framework Convention on Climate Change (UNFCCC) — an international environmental treaty addressing climate change. Additionally, thousands of representatives from civil society, the private sector, international organizations and media join the meeting to discuss action on climate change. Since COP21 in 2015, COPs have revolved around implementing the Paris Agreement, which has three main goals: keep global average temperature rise to ‘well below’ 2°C and pursue efforts to limit the rise to 1.5°C above pre-industrial levels; adapt to climate change and build resilience; and align finance flows with ‘a pathway towards low greenhouse gas emissions and climate-resilient development’.

Upcoming COP28, the 28th iteration of the UN climate conference, takes place in the wake of yet another year of severe extreme weather events (scientists state that 2023 will be the hottest year on record). Therefore, it is anticipated to involve serious discussions and decisions related to the climate crisis. Here are five more compelling reasons to follow COP28.

Most ambitious agenda ever

Dr. Sultan Al Jaber, currently holding the presidency for COP, has been serving as the UAE’s special envoy for climate change over the past three years, concurrently serving as the CEO of Abu Dhabi National Oil Company (ADNOC). At some point his dual role has drawn criticism from activists, raising concerns about a potential alignment with the interests of the fossil fuel industry during COP28. However, once Dr. Sultan Al Jaber presented the proposed climate action plan for COP28, it became evident that his intention was to advocate for expediting a fair, well-organized, and just energy transition. The plan entails a threefold increase in renewable energy capacity within the next seven years, along with a commitment to gradually phase down fossil fuel usage and phase out fossil fuel production in instances where carbon emissions are not captured.

Dr. Sultan Al Jaber emphasized the crucial importance of tackling the dependence of economic development on fossil fuels and named the necessity of reducing it as both “inevitable” and “essential”. However, he also recognized the challenges involved in eliminating fossil fuels when a new energy system is yet to be fully developed, and thus stressed the urgency of implementing zero carbon alternatives rapidly. Importantly, Dr. Sultan Al Jaber underlined how crucial it is to recognize oil companies as a part of the solution rather than the problem. By involving oil and gas companies, he claimed to change the perception that such companies are not actively contributing to climate solutions.

The above statements have led many to consider the COP28 agenda as the most ambitious and significant to date. It is important to witness the discussions and decisions that will unfold during COP28 on these aspects.

Possible new regulations

At COP28, parties are expected to review the outcomes of the global stocktake, assessing whether there’s a necessity to expedite ambition in their upcoming round of climate action plans scheduled for 2025.

A global stocktake, known as GST, is a comprehensive evaluation undertaken by countries and stakeholders to assess their collective progress towards achieving the objectives of the Paris Agreement. By COP28 the first-ever global stocktake (GST) would come to an end. Unfortunately, some findings of the GST are already clear, and indicate that the international community is not on track to limit global warming to the desired goal of 1.5°C.

With this concerning outcome, it’s crucial for businesses and stakeholders to closely follow the GST discussion as it could result in setting new global and national objectives and implementing updated environmental regulations. As a result, businesses will be compelled to ensure compliance with any revised regulations stemming from the GST assessment.

New investment opportunities

Businesses will have increased opportunities to explore potential new funding and investment avenues at COP28 in Dubai. Importantly, COP28 is anticipated to offer recommendations on implementing the ’loss and damage’ framework established during COP27.

The ’loss and damage’ fund provides a financial mechanism to support vulnerable nations in tackling the long-term effects of climate change that exceed their ability to adapt. This fund is meant to help these countries deal with the dire effects, like extreme weather, increasing sea levels, and other catastrophes brought on by climate change. The activation of this fund might create fresh avenues for businesses to invest in climate-resilient projects and initiatives.

Aligning for global competitiveness

COP28 offers Middle Eastern companies an opportunity to further align themselves with evolving global sustainability standards amidst intricate geopolitical landscapes. As the region progresses through the initial stages of its sustainability journey, a key focus remains on ’just transition’—ensuring that global decarbonization efforts are not only efficient but also just, fair, and inclusive.

This alignment is crucial for Middle Eastern businesses, especially those based in the UAE, to enhance their credibility globally. Complying with environmental, social, and governance (ESG) frameworks and norms is essential to compete with global firms based in the US and Europe. Furthermore, a lot of companies in the area are already actively participating in the ’just transition’ conversation, and COP28 offers a useful forum for learning new things and demonstrating a commitment to sustainable business practices.

Enhanced reputation and networking

Each international gathering of such level is a unique opportunity for businesses to enhance their brand and establish new connections. Furthermore, COP28 is a chance for every company to demonstrate a commitment to climate stewardship to showcase dedication to climate-conscious initiatives, and to align environmental goals with the most recent trends and discussions at the highest and most prestigious climate conference of our time.

While it’s feasible to track specific COP28 meetings online, undoubtedly, physically attending COP28 would offer an exceptional chance for networking and forging new partnerships. Dubai is set to host over 200 invited governments (although confirmation from several leaders is pending). Anticipated attendance at the summit is estimated to reach 70,000 individuals, comprising representatives from the private sector, NGOs, think tanks, and a diverse array of organizations.

*The 2023 United Nations Climate Change Conference (COP28) is to be held from 30 November to 1 December 2023 in Dubai (Expo City Dubai), the United Arab Emirates. For more information about how you can register and become a part of COP28 UAE: https://www.cop28.com/en/about-cop28.

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