Gloomy businesses urge COP28 to act on carbon price, fossil fuel subsidies

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  • More than 100 businesses have called for an end to fossil fuel subsidies.
  • Given the geopolitical tensions, expectations are low for some.
  • Companies said that there is a need to improve the global carbon price

LONDON November 28, 2011 As climate talks in Dubai begin this week, businesses say more ambitious policies are urgently needed to transition to clean energy, including an end to fossil fuel subsidies and an agreement on a global carbon price.

The COP28 UN summit on Thursday will take a clear step forward as governments disagree on the future role of fossil fuels, leaders are distracted by war and global economic weakness has led to a global pullback. Climate expectations.

More than 70,000 attendees at COP28 are expected to discuss the global warming that has so far failed to curb carbon dioxide emissions, how to help the most vulnerable countries, and the years-long effort to agree a global price on carbon dioxide. They say that businesses can guide decision-making.

United Nations talks After the landmark Paris Agreement in 2015, the goal of limiting global warming to below 2 degrees Celsius (3.6 degrees Fahrenheit) was 1.5C.

United Nations in September he said. Further action is needed to ensure that global warming is kept to no more than 2C above the pre-industrial average.

“This COP we need to see accelerated action from all parties,” said Matt Bell, head of EY’s global climate change and sustainability practice.

While touting their own efforts to reduce emissions, corporate executives say there are limits to what business is willing to do without incentives or government policy shifts.

“Businesses will lead this transition if they are motivated to do it the right way,” Bell said.

Originally focused only on talks between countries, the private sector has increased its presence at UN meetings in recent years as governments look to the sector’s financial support to bring about change in the real economy.

COP28 President-designate Sultan Al Jaber, head of the UAE’s state-owned oil company, said he would include the oil and gas industry in climate talks and presented the decision as a constructive way forward.

Climate activists have questioned his appointment and raised concerns about his tenure. Oil industry Prevents growth while curbing emissions.

Support for renewables

A group of 131 companies with revenues of 1 trillion dollars in October made a call Governments have pledged to unabate fossil fuels, triple the use of renewable energy and completely phase out energy efficiency reforms.

Draft Letter Reuters reports strong support for the renewable energy goal, although geopolitical tensions, particularly between the world’s biggest polluters China and the United States, have dampened hopes for many.

“Our expectations from COOP28 are limited,” said Virginie Dere, head of ESG research at French asset manager AXA Investment Managers, citing “the lack of global consensus on priorities and the growth of multipolarity, which is slowing global cooperation.” “

Consultants Accenture’s survey of 1,000 business leaders revealed the need to focus on the decarbonisation of capital-intensive industries, with 38% of respondents saying we cannot decarbonise in the current environment.

“One thing is clear: the business case for low-carbon investments is often weak, and businesses need government to create market incentives to change this,” said Catherine Dixon, partner at Bain & Company Advisors.

The business and financial sectors have been calling for a global price on carbon emissions, which they say would level the playing field for polluters and make the move to lower carbon emissions more cost-effective.

“We need a more global approach that includes a larger share of the economy,” said Victoria Leggett, head of impact investing at asset manager UBP.

While such an agreement is unlikely to be established at COP28, small steps can be taken, including the development of a new market to trade carbon credits between companies. self confidence Voluntary carbon markets have collapsed this year as critics question the projects’ environmental credibility.

“The last 10% (of a corporate) carbon reduction plan always includes some carbon credits,” Leggett added. “The market needs clarity on what that means.”

Reporting by Simon Jessop and Tommy Reggio Wilkes; Edited by Barbara Lewis

Our standards: The Thomson Reuters Trust Principles.

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Simon leads a team that monitors how the financial system and companies are responding to the challenges faced by climate change, biodiversity loss and other environmental, social and governance (ESG) issues, including diversity and inclusion. Contact: +44 (0) 7795 036 759

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