COP28: Carbon Pricing and Carbon Border Adjustment Mechanism (CBAM)
Carbon pricing is being discussed in the UAE. What are the lessons learnt from carbon pricing in EU and Germany?
How will the EU Carbon Border Tax (CBAM) affect international trade?
The discussion brings together policy makers and experts from climate research and environment agencies:
- Dipak Sakaria — UAE Ministry of Energy and Infrastructure (MOEIUAE)
- Malte Bornkamm — Federal Ministry for Economics and Climate Action
- Oliver Oehms — German Emirati Joint Council for Industry & Commerce (AHK)
- Eva Ramos Perez-Torreblanca — Environment Agency – Abu Dhabi (EAD)
- Bernadett Papp — Pact Capital
The moderators Henrik Schult and Laura Moussa will guide you through the event.
Burning questions in Dubai at COP28 UAE
Date: Nov 28, 2023
As we approach the end of the hottest year on record, politicians, business leaders and NGOs seek answers on some burning questions in Dubai at COP28 UAE.
Where do countries stand with achieving their NDC goals? Are they doing enough to deliver the Paris Agreement targets? How will carbon projects contribute to a low emissions economy?
Loss and Damage Fund
Date: Nov 29, 2023
Preparing for active negotiations at COP28, the UNFCCC has published a draft decision on the Loss and Damage Fund that will support developing countries in their battle against climate change in regions Pact Capital is also active in.
Big items to be discussed
Date: Nov 30, 2023
Among the big items to be discussed at COP28 in Dubai kicking off today, an agreement on increasing renewable energy capacity and boosting energy efficiency are the topics where we can expect a real progress which would confirm Pact Capital’s strategic vision that made us invest in wind, hydro and biogas projects.
Date: Dec 4, 2023
The switch to sustainable technologies requires a price on emissions (yes, also in the MENA region), financing of R&D and upfront capex. Huge interest seen at panel discussions at COP28 about carbon pricing and climate financing.
Date: Dec 8, 2023
“There are many options that are on the table right now which speak to the phasing out of Fossil Fuels. It is for parties to unpick that, but come up with a very clear statement that signals the terminal decline of the fossil fuel era as we know it”, according to U.N. climate chief Simon Stiell at COP28 in Dubai. Still, the biggest names in the industry have just announced plans to increase investments in new oil and gas projects in 2024. Explore our projects that offer alternatives to the use of fossil fuels.
On the first days of the event, it really seemed that everything is achievable. People arrived enthusiastically, signed new agreements, made new promises.
But in the second half of the Conference, when it came to the hard work of negotiating a consensus among almost 200 parties, the momentum evaporated. Both the Global Stocktake and Article 6 texts have seen several drafts, one rejected after the other.
At the second last moment — as the Conference ended later than planned — the parties adopted a softened Global Stocktake but could not agree on Article 6 rules delaying the process by one year.
Compared to the high expectations the COP28 started with the final result could be considered as a failure.
There is however a different point of view that recognizes the progress parties made in certain issues.
This is the first time a text has been adopted by the parties that even mentions fossil fuels. While scientific evidence proves that the use of fossil fuels is the major contributor to global emissions and therefore to climate change, previous COPs could not agree on a common ground and omitted mentioning it. Even though the current text is weaker than expected by many it seems the only viable compromise.
Carbon project developers are especially disappointed by the lack of a new guidance regarding international carbon markets as parties gave up on Article 6. Carbon projects got under increased scrutiny and criticism from different parts and both investors and buyers of the credits hoped for clarity which they have not received. At the same time, there have been plenty of new common carbon projects announced by countries producing internationally transferable mitigation outcomes. These bilateral agreements can work if countries mutually recognize each other’s efforts to reduce emissions. A strong, detailed guidance about Article 6.4 projects and credits would be essential to rebuild confidence in carbon projects, but a no deal is still better than a diluted text that would attract criticism again.
Last but not least, nothing keeps countries, businesses and people from going beyond what has been agreed in Dubai as many promised to triple the share of renewables in their energy mix and double energy efficiency measures by 2030 which should all result in the reduction of fossil fuel use.
The joint statement of seven EU Member States (Netherlands, Germany, France, Spain, Finland, Belgium and Austria) proposing a framework to “prevent greenwashing” and to restore integrity in voluntary carbon markets is a sign that voluntary carbon markets are indispensable to reach our Paris targets, they just have to be regulated by clean rules.
We at Pact Capital remain committed to do our best and build on our multiannual experience when implementing our projects that contribute to emission reductions and are accompanied by social benefits for the societies nearby.