You can access the results of COP28, which will shape the upcoming period with many important outcomes such as the phased exit from fossil fuels, the establishment of the Loss and Damage Fund, and the Global Stocktake, along with CDP-specific insights and the observations of Mirhan Köroğlu, who attended the conference on-site, in our comprehensive COP28 Bulletin.

Impressions from COP 28:

When I entered the Dubai Expo Center on the first day of the second week, the first feeling I had was a sense of urgency. As the days passed and the end drew near, this feeling was replaced by anxiety and occasional disappointment. However, by the end of these two weeks, it became clear that the outcome we faced, although requiring much more work, at least helped us to redraw the course.

In the first General Assembly Meeting of the second week, COP28 President Sultan Al Jaber referred to COP28 as a "collective COP" that has changed the way COPs have been conducted so far, and he wasn't entirely wrong. It was indeed promising to see such diverse groups coming together, not just in terms of participation numbers but also in representation. Compared to previous COPs, it can be said that this collective approach played a role in bringing the issue of "just transition" to the forefront in almost all discussions.

Speaking at the 'COP28 Ministerial Pairings' press conference in the second week, Danish Minister Dan Jorgensen called on all ministers, stating that although sufficient steps have not been taken to reach the 1.5-degree target, COP can achieve its purpose if we work together. He also urged to make this COP the most important one since Paris. It was evident that he had in mind a text that included the decision to completely phase out fossil fuels, but unfortunately, like the rest of us, he had to settle for a decision of a "just and equitable phase-out of fossil fuels" muddied by alternatives such as nuclear energy, carbon capture and storage, and transition fuels.

As CDP, we see the results of our years-long effort to make climate reporting a norm, with more and more companies and municipalities reporting each year. However, we now have a much bigger goal: making reporting not just climate-based but also nature-based. During this COP, we received strong signals that the fruits of our long-term efforts in this area will be reaped much faster than in climate reporting.

It was a very positive sign to see the theme of nature being addressed as a main topic in almost every presidential session and many side events. Particularly following the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF), we are witnessing strengthened actions. During the second week, a high-level event titled 'From Agreement to Action: Leveraging the 30X30 Approach in Tackling Climate Change' was held to evaluate the progress in implementing the GBF. This event, which examined how governments are fulfilling their commitments to protect, conserve, and restore at least 30% of the planet's land and oceans by 2030, and highlighted the contributions of leading non-state actors, underscored the critical importance of nature-based actions in achieving the goals of the Paris Agreement. Additionally, progress on the goal of mobilizing $200 billion annually for biodiversity finance by 2030 and at least $20 billion annually in international biodiversity finance by 2025 was discussed.

Under the framework of the Taskforce on Nature-related Financial Disclosures (TNFD), with which CDP has been working for a long time and will integrate into its questions following TCFD, an event titled 'Supporting Companies on Their Nature Reporting Journey' was held. The event emphasized the need to create a common language for nature. TNFD announced that they have completed the framework development stage and will now focus on its enhancement and dissemination. Their plans for the upcoming period include capacity building, alignment with other standards, addressing gaps and barriers, integrating nature factors into transition plans, and focusing on sector guidelines.

Another significant development was the intense interest in oceans, which should be the first thing that comes to mind when talking about biodiversity, but has unfortunately been secondarily addressed due to its obscurity and being overshadowed by the focus on climate. At the ‘We are all ice-dependent species’ event organized by UNFCCC, the legendary marine biologist Dr. Sylvia Earle gave an inspiring speech. Dr. Earle, who said that billions of people have been taking from the ocean for years and replacing it with plastic and waste, emphasized that when it comes to biodiversity, the Amazon often comes to mind first, but ocean biodiversity might be thousands or even millions of times greater than on land, and we know almost nothing about the oceans. It is clear that oceans, the world's most important carbon sink and biodiversity source, have been pushed to the background. Therefore, platforms dedicated solely to oceans are now needed, and a meeting will be held in Nice next year for this purpose, where the issue of oceans will start being discussed.

Another important focus area on the agenda of all countries and companies was the circular economy. In this context, the latest Circular Economy Index, calculated by Kapsarc since 2021, was announced at COP28. According to the 2023 results announced by Fatih Yılmaz, who leads the team, Norway, the United Kingdom, the Netherlands, Canada, and Germany succeeded in being the top five countries. The event emphasized that the focus of the circular economy is on production, reuse, and recycling, and in the circular carbon economy, the equation includes 'reduction and elimination,' meaning a focus on nature-based solutions.

The main focus of COP28 was undoubtedly the Global Stocktake. Throughout the conference, dozens of civil society organizations and research institutes frequently emphasized the urgency of the situation and the shortcomings through their research and studies on this issue. The use of fossil fuels doubled compared to last year due to the energy crisis. The carbon budget is rapidly shrinking. Developed countries are still spending the budgets of developing countries. The $100 billion climate fund was set as a target in 2020, but this figure has not yet been reached, and it is now very clear that even this figure is insufficient, but no one wants to openly discuss this issue. Considering IPCC and IEA reports, it is evident that total fossil fuel production needs to be reduced by approximately 40% by 2030. The focus on carbon capture technologies, which were frequently mentioned at COP28, delays the necessary steps to achieve the 1.5-degree target.

Towards the end of the second week, at the ‘Turning Global Stocktake into Action on the Ground’ event held by WRI, NewClimate Institute, ClimateWorks Foundation, CAN - Europe, and WWF, it was emphasized that countries were able to create the necessary funding for COVID measures in a very short time, but the same has not been done for climate. However, there are urgent actions to be taken ahead. WRI stresses that to close the emissions gap by 2030, deforestation needs to be reduced four times faster, efforts to develop public transportation infrastructure need to be increased six times, coal phase-out and electrification need to accelerate seven times faster, red meat consumption needs to be reduced eight times faster, decarbonization of the cement sector needs to happen ten times faster, and investments in low-carbon energy need to occur ten times faster. Former Peruvian Environment Minister Manuel Pulgar Vidal, who humorously described the fight against climate change as 'Alphabet Soup' due to the use of numerous incomprehensible acronyms, stated at the event that the Global Stocktake serves as a guide for countries in preparing their NDCs in the coming period. He warned that if the necessary measures are not taken, Latin America's total GDP could decrease by 25% by 2050.

One of the topics most frequently raised by civil society organizations, particularly Greenpeace, was how funds would be used for a just transition. The biggest problem is expected to arise at the stage of local distribution of funds. Many countries lack a sufficient and transparent mechanism to manage this process. Urgent studies are needed on how to transfer technology and new developments to vulnerable groups. Particularly at the local level, countries most vulnerable to climate change want measures to be taken to ensure that the funds are used correctly and whether they create the desired impact.

Another first at COP28 was the creation of a platform where food, agriculture, and water issues were discussed together for the first time. The COP28 Food Systems and Agriculture Agenda had four pillars: national leadership, non-state actors, scaling innovation, and of course, finance. On December 1, the COP28 Presidency announced that 134 world leaders had signed the landmark 'COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action.' Additionally, it was announced that over $2.5 billion in funding was created to support food security while combating climate change. The Declaration addresses global emissions while protecting the lives and livelihoods of farmers on the front lines of climate change.

CDP organized many events during COP28 and participated as a speaker in various events. Towards the end of the second week, at the event titled 'Decarbonizing Supply Chains through Data, Technology, and Finance,' the role of investment and technology in the decarbonization of supply chains was discussed. We now know that AI technologies will make the greatest contribution to the rapid transformation and change in CDP reporting in the coming period. For the many SMEs in Türkiye that voluntarily approach us for CDP reporting every day, these steps in reporting will contribute significantly to the much easier and faster progress of this process, especially as it evolves towards mandatory reporting.

One of the key topics frequently highlighted by CDP during COP28 was closing the investment gap and mobilizing the necessary financing for water and climate-resilient companies and cities. According to CDP data, every dollar invested in adaptation and resilience can yield benefits in the range of $2 to $15, especially for water. Nearly half of the financial institutions reporting to CDP disclosed investing $9 trillion in fossil fuels. We now all know what can change if these investments are redirected properly. What we need to do is build the necessary will to facilitate this redirection. COP28 was a step in the right direction, setting concrete targets for reduction, adaptation, and financial goals. However, what is crucial is the adaptation of these targets by countries into NDCs in a correct and transparent manner. COP28 will accelerate the transition from the twin transition of green and digital transformation for the private sector to a triple transition that includes a social dimension. What happens next will depend on how and how quickly this transformation is realized.

Mirhan Köroğlu Göğüş

CDP Türkiye Projects Manager / Sabancı University Corporate Governance Forum

COP28 CDP Special News

During COP28, CDP published a briefing note on the 2023 data.

In 2023, over 23,000 companies reported their environmental performance data through CDP. As the number of companies disclosing their environmental data increases each year, CDP's role as an accountability mechanism is strengthened. The preliminary global results from CDP for 2023 were released at COP28. The new data reveals significant gaps in corporate actions. The move away from fossil fuels and the call from non-state actors in this area send a clear signal to companies and investors: the era of fossil fuels is over. The Global Status Report reaffirms what CDP data has long shown: there is a need for solid policies and regulations to quickly shift financial flows away from fossil fuels towards renewable energy.

For more details: Link

Taskforce on Net Zero Policy Begins Work

The Taskforce on Net Zero Policy (TNZP), announced at COP28, has started its work. The working group aims to support collective expert efforts for a sustainable future and help governments worldwide chart a course for the climate crisis. In a period where there is a crucial need for effective public policy actions towards net zero, TNZP's collaboration with governments is seen as a milestone in the global effort to achieve net zero. CDP is preparing to contribute over 20 years of insights and data to the TNZP’s efforts.

For more details: Link

Joint Analysis by CDP and BCG Released at COP28

Decarbonizing carbon-intensive sectors is crucial on the path to net zero, and this transition was a focal point of discussions at COP28. The joint analysis by CDP and BCG tracks the challenges and progress in sectors where decarbonization is difficult, such as chemicals, steel, and cement, which account for approximately 20% of global emissions. The key analyses in the report are based solely on data from companies reporting through CDP. Since 2020, the proportion of relevant sector companies setting Scope 1 and 2 targets has increased by 18%. Additionally, there has been a 4% reduction in absolute Scope 1 emissions from 2022 to 2023.

For more details: Link

CDP COP Post-Webinar on COP28 Outcomes

A CDP webinar will be held on January 10, Wednesday, to discuss the outcomes of COP28, its impact on the business world, and the necessary actions. Click here to register.

Key COP28 Outcomes

Final COP28 Text: UAE Agreement
The decision to move away from fossil fuels is the first time it has appeared in the official results of a COP since the start of UN climate negotiations 30 years ago. However, the call to fully phase out fossil fuels, supported by the EU and over 100 countries, was rejected by a group including several oil-producing states. Instead, COP28 proposed a more ambiguous agreement to “phase out” polluting fuels. While the text mentions a fair and just transition from fossil fuels, it includes directives and incentives for unproven and costly technologies such as nuclear energy, carbon reduction, and carbon capture and storage.
Approximately 200 countries agreed to a range of measures to prevent the devastating effects of climate change, including increasing clean energy production and doubling energy efficiency by 2030. Additionally, the COP decision called on countries to accelerate emissions reductions from road transport through various means, including the transition to zero-emission vehicles, public transportation, and safe cycling infrastructure.
Outside of official climate negotiations, there were significant advances in commitments to reduce methane emissions, create more sustainable food systems, protect forests, and more.

Loss and Damage Fund Officially Adopted
On the first day of COP28, the long-awaited Loss and Damage Fund was officially adopted. This fund will provide financial support to vulnerable and developing countries for climate change-induced disasters such as floods, fires, and desertification. Managed by the World Bank, it is estimated that the economic cost of loss and damage in developing countries could reach between $290 billion and $580 billion by 2030, not including hard-to-measure losses like ecosystem and biodiversity losses. While the fund is seen as a victory for developing countries, many details still need to be worked out. Determining the definition of loss and damage and how support will be provided is crucial. It is also important to establish whether the Loss and Damage Fund is additional financing beyond previously declared grants. Reuse of humanitarian aid or other overseas development aid funds for this purpose, or re-labeling reduction and adaptation financing as loss and damage financing, may be problematic. Additionally, ensuring direct access to the fund for communities without intermediaries is critical. Countries need to make much larger commitments and mobilize innovative financing sources to meet the needs of climate-affected communities. They will also need to provide funding for the Santiago Network.

Global Adaptation Goal Framework Established
Although the 2015 Paris Agreement set a goal to enhance adaptation capacity, strengthen resilience, and reduce vulnerability to climate change, negotiators had not defined a framework for the Global Adaptation Goal, including specific targets or how they would be measured. After two years of discussions, COP28 reached an agreement on global targets for specific themes and sectors (such as water and health) and the adaptation policy process. However, these targets are not yet quantified. The framework for the Global Adaptation Goal references the widening adaptation finance gap. There is a clear need for significant increases in financial support beyond the current commitment to double adaptation finance. Nonetheless, this framework will offer an opportunity to fill in the gaps for adaptation in future Global Status Reports. Details are expected to be clarified at COP29.

COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action Signed
The COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action was signed by 159 countries, covering about 80% of the world's land. They committed to integrating food and food systems into their NDCs by 2025. The declaration was signed by many countries with high food-related greenhouse gas emissions, including Brazil, China, the European Union, and the United States.

New $30 Billion Private Investment Fund for Climate Solutions Established
A new $30 billion private climate fund has been established to mobilize private sector investment in low-carbon and climate-resilient projects, especially in emerging and developing economies. This capital will leverage expertise and resources from organizations such as the World Bank, International Finance Corporation, and the World Economic Forum. UAE President Sheikh Mohamed bin Zayed Al Nahyan noted that the fund aims to address one of the biggest barriers to global climate action: the lack of accessible and affordable finance.

Strengthening National Climate Commitments (NDCs)
The Global Status Report calls on countries to submit new NDCs well before COP30 in 2025. In the next round, countries are expected to update their 2030 targets and present new targets for 2035. The COP28 decision emphasizes that these new NDCs should be more ambitious, noting that the IPCC's 1.5-degree goal requires global greenhouse gas emissions to be reduced to 60% below 2019 levels by 2035. The assessment also notes that the next NDC round should include plans and priorities for reducing emissions, adaptation, fair transition efforts, and loss and damage. The results should also reflect transformations across multiple sectors, including clean energy, nature conservation, and road transport. Governments will start preparing the next NDC rounds in 2024.

How Did Türkiye Engage in the Process?

Türkiye did not play an active role at COP28. It has been criticized for signing important declarations at the last minute and not signing many significant partnerships and declarations for Türkiye. Ranked 15th among the world's highest greenhouse gas emitters, Türkiye has yet to update its climate target, which forecasts an increase in national greenhouse gas emissions by over 30% by 2030. Considering Türkiye’s dependence on imported energy and its need for renewable energy, its lack of support for the phase-out of fossil fuels and opposition to phase-out and reduction options during summit discussions resulted in a negative perception of COP28 for Türkiye.

What Should the Reduction Targets for 1.5 Degrees Be?

Lord Adair Turner, Chair of the Energy Transition Commission, outlined the reduction targets set by COP28 to achieve the 1.5-degree goal.

For more information, read our article: Link