UAE contributes $30 billion!

United Nations Secretary-General recently said that this year is likely to be the hottest year on record globally, which makes all parties realize that solving the climate problem is imminent.

A recent report by the UN’s World Meteorological Organization showed that in the early 10 months of this year, global temperatures have risen by about 1.4 degrees Celsius compared to the pre-industrial average. From this the UN Secretary General also said that despite the fact that there is still a month to go before the end of 2023, it can already be seen that this year is likely to be the hottest year on record. This has put the eyes of the world on the 28th UN Climate Change Conference being held in Dubai.

COP28 got off to a great start when the UAE, as host, announced that it was contributing $30 billion to set up a new climate fund that it hoped would accelerate the global transition to a low-carbon economy and help poorer countries mitigate climate disasters. The new fund will have a bifurcated structure, with $25 billion for strategic climate investments and $5 billion to incentivize investment flows to the global South, meaning low-income countries such as developing and underdeveloped countries.

UAE hopes that the fund will lead to increased private sector investment in climate, with a focus on areas including the energy transition, industrial decarbonization, and climate, technology, among others.

But a key challenge for the conference remains, regarding the role of fossil fuels in the environmental process.

In an interview, the Managing Director of the International Monetary Fund expressed her confidence that through investment in innovative technologies, we will eventually see fossil fuels phased out.

Kristalina Georgieva, Managing Director, International Monetary Fund: Will we see fossil fuels phased out? Definitely. It’s unavoidable, and I’ve always believed in the ability of human beings, that we can create solutions to problems.

International Monetary Fund Managing Director Georgieva’s statement and the first time to attend the climate conference ExxonMobil contrast, ExxonMobil’s CEO interview will be the focus of the conversation fell on the “emission reduction” rather than “phase out fossil fuels”.

Darren Woods, Chief Executive Officer, ExxonMobil Corporation, United States: I think the concern of society is emissions, and I don’t think there is a one-size-fits-all solution.

Both sides of the argument, the characterization of fossil fuels is still divided. So by the end of the conference, one of the major concerns will be whether to position fossil fuels as “phased out” or “phased down” or something else.

In addition, the Managing Director of the IMF used the conference to emphasize the importance of carbon pricing. The IMF has increased its carbon pricing projections from $75 to $85 per ton by 2030.

Kristalina Georgieva, Managing Director, International Monetary Fund: We expect that carbon pricing will have to reach $85 per ton by 2030. For those countries that have adopted carbon pricing, which is now at $20 per ton, we will not be able to control global temperatures fast enough without it.