This year’s COP28 in Dubai, United Arab Emirates, draws together world leaders, policymakers, industry innovators, and environmental activists to exchange ideas and formulate strategies to tackle climate change. And KPMG will be at the center of the action, monitoring developments and generating regular insights and status updates.
Key themes this year include the energy transition, accelerating innovation, and the nexus of climate and nature.
KPMG’s COP28 Resource Center helps businesses better understand their nature- and climate-related risks and learn about cutting-edge sustainable practices and technologies that can increase environmental efficiency. With sustainability reporting going mainstream, we’ll also keep you informed of the latest developments on frameworks, regulations and standards.
Every business has a part to play in reversing the catastrophic impacts of climate change, and we want to help with this critical endeavor in any way we can.
COP28 Update | November 30
Charbel Moussa, Partner Climate Risk and Decarbonization
KPMG In the Netherlands
Day one of the conference brought an announcement from COP28 President Sultan al-Jaber on the operationalization of a $400 million+ Loss and Damage fund. The operationalisation of this fund today – which was backed by wealthy nations at COP27 last year at Sharm el-Sheikh – is a moment of renewed hope for the poorest countries who have long borne the brunt of extreme climate events. This fund will initially be administered by the World Bank which will deploy funding primarily from developed countries.
COP28 Update | December 1
Marwa Mahmoud, Manager Climate Risk and Decarbonization Strategies
KPMG In the Netherlands
COP28 President Dr. Sultan Al Jaber unveiled the COP28 UAE Declaration of Leaders on a Global Climate Finance Framework, outlining a transformative roadmap to rebuild trust, capitalize on the economic potential of climate investments, and deliver impactful solutions at scale.
Read the declaration →
COP28 Update | 10 december
Charbel Moussa, Partner Climate Risk & Decarbonization
KPMG Nederland
The next 2 days are the final days of negotiations, at ministerial level. The aim is to close COP28 on Dec 12, 21.00 GST. The Presidency could ask for extension, if needed for a final push in negotiations. COP28 could conclude with no agreement (No COP outcome). It happened only once before in the history of climate negotiations.
Where do we stand?
This year is clearly the ‘Investment COP’. US$ 80 billion were pledged in 1 week for various funds and topics. Whether these pledges will be fully mobilised remains to be seen. One cannot help but feel that climate finance is the main (only?) tool being leveraged during negotiations towards a climate agreement.
Loss & Damage fund is operationalised
A key outcome of COP so far. The United Nations Office for Disaster Risk Reduction (UNDRR) and UNOPS, in a consortium, will be the hosts from an organisational perspective. No agreement is made yet on the host country. A cost-benefit analysis will be undertaken to determine where to have the headquarters of the fund. Outcome expected in Q2 2024.
There is a pessimistic feeling amongst negotiators on the 2 key topics of any climate agreement: Adaptation and Mitigation. I have spoken to delegates of many countries, and regardless of their positions on these topics, they are all disappointed by the negotiation process.
Our Insights
Innovation to net zero
An emerging global ecosystem of climate innovators is developing a wide range of exciting new green technologies. Their challenge is to secure funding, find industrial partners to test and pilot new products, and commercialize at scale.
KPMG firms are working with clients large and small to help them fulfil their potential and unleash climate, sustainable energy, carbon reduction and removal solutions. Calling on our deep knowledge of the public and private sectors, KPMG professionals can assist with matters like regulation, risk and value assessment, finance and investment, data management, and complex stakeholder processes.
Cities have a crucial role to play in the net zero transition, which is why KPMG developed the Net Zero Urban Program in collaboration with United Cities, to accelerate decarbonization in urban environments.
Energy transition
Scaling up the development, provision and adoption of renewables requires a huge, collaborative effort from governments, businesses, regulators, investors and consumers. This involves significant investment in grid infrastructure, and faster planning and permitting to provide the land needed to generate the power. Energy storage capacity should be expanded at pace, along with incentives to accelerate innovation of all relevant renewable technologies.
Many of the raw materials needed to drive the green revolution are in short supply, while extraction – along with construction of renewable facilities – carries risks to nature and biodiversity. The renewables industry itself may be vulnerable to climate change, so any solutions must attempt to build resilience to ensure a ready future supply of clean energy for all nations, rich and poor.
Climate and nature nexus
As biodiversity become a growing priority, businesses are learning more about how their operations affect the natural world – and what they can do to mitigate any negative impacts. Driven by the Taskforce on Nature-related Financial Disclosures (TNFD), regulators are increasingly asking organizations to incorporate both climate- and nature-related risks into their reporting.
Understanding the requirements of both the TNFD and the TCFD (Taskforce on Climate-related Financial Disclosures) is essential, in order to satisfy regulators, investors, customers and other stakeholders. Boards are under significant pressure to address environmental issues, and need to grasp the implications of climate and nature risks and opportunities. We recommend an integrated approach, to embed sustainability and evolve to a circular, climate- and nature-friendly business model.
Giving tomorrow's leaders a bigger voice at COP28
Climate change is arguably the greatest threat to our collective future. Society's younger members will be most affected, yet tomorrow's leaders lack a voice in today's conversations on this existential issue.
In October 2023 KPMG International surveyed 363 young people from 38 countries to hear what they had to say on the private sector's role in COP28 negotiations, and the priorities for senior business leaders. The responses - both globally and regionally - offer some compelling pointers on how private companies can help tackle climate change and its associated social challenges.
