13/12/2023
Redefining Climate Action at COP28: Key Outcomes from World Climate Summit – The Investment COP 2023
World Climate Summit – The Investment COP 2023 has set a new standard for global collaboration for climate solutions. Taking place alongside COP28 in Dubai, the Summit convened over 2000 high-level experts from government, international organisations, large industry leaders, technological startups, the scientific community and concerned citizens from around the world.
The two days of high-level discussions, spotlight sessions and industry-specific workshops emphasised the urgency of decarbonisation and shed light on the most pressing challenges for the crucial transition to a low-carbon economy. They also equipped us with scalable case studies and actionable steps. We discussed the ways to decarbonise trade and hard-to-abate sectors, efficient deployment of clean energy, transitioning of transport and building sectors, carbon markets, accelerating financing and investment mechanisms in emerging markets, nature markets and nature-based solutions.
World Climate Summit 2023 provided a truly powerful platform for solutions, where participants could collectively envision the future and reach a consensus that advancing progress requires robust policies, enhanced intergovernmental cooperation, and effective matchmaking between financial supply and demand.
The Importance of Collaboration
A central theme at the Summit was collaboration, be it the decarbonisation of the hard-to-abate sectors or the inclusion of nature in climate solutions and finance. Participants discussed the necessity of horizontal and vertical collaboration strategies across industries and along the supply chain. Social inclusion and justice should be an integral part of this collaboration effort. Moreover, collaboration and partnerships should become a daily practice for those committed to achieving climate progress. The call to action is clear: we must address the climate crisis one step at a time, day by day.
Kehkashan Basu
“We need every single stakeholder from civil society, social innovation enterprises, private sector, and governments to have the will to turn ambition into action for climate-just future.”
— Kehkashan Basu, Founder and President, Green Hope Foundation
Private Sector as a Catalyst for Change
Businesses are advocating for policies that support both their interests and environmental sustainability, acting as catalysts for policy development. Panelists across sessions highlighted the importance of setting targets across each scope and the positive impact of nature conservation on commercial interests.
Growing business Case for Nature
Natural capital should be included not only in corporate vision and governmental plans, but also in the key agenda of financial institutions. Financial institutions play a pivotal role in directing funds toward nature-positive initiatives, with the Finance Sector Roadmap outlining steps for global leaders to prioritise nature and eliminate commodity-driven deforestation.
“There is no life without ending deforestation and nature degradation. No more excuses not to act!”
— Pei Chi Wong, Senior Research Associate, Global Canopy
Environmental justice was not left behind the stage – recognition of traditional knowledge, ensuring social inclusion, and preventing human rights violations are underscored to make sure it will be a green and just transition for all.
“Communities have to be included in the value chain and they cannot just receive the social dividend, they must get the economic dividend.”
— Patrick Krappie, Acting CEO of the Technology Innovation Agency, South Africa
Clear and Harmonised Regulations, Standards and Definitions
The call for streamlined regulations across borders underscores the urgency and significance of a cohesive global framework for both industry decarbonisation and energy transition with collaboration, predictability and simplicity. Common definitions tend to be crucial to prevent the financing of transition from becoming a breeding ground for greenwashing. Moreover, the growing need for better data and global standards in ESG reporting aims to shift the focus from reporting to action.
Evolution of Climate Finance
Financial innovation presents an opportunity for the private sector to thrive. The dynamic landscape of climate finance has undergone a notable evolution; moving from a focus on green energy to a comprehensive climate action encompassing net-zero, 2030 targets, as well as a strategic shift towards addressing the challenge of hard-to-abate sectors decarbonisation.
"Substantial amount of concessional financing will be required to attract the necessary private sector capital. This capital exists, but we must find a partnership approach that effectively mitigates the risks. With such collaborations, we can really make some progress."
- Mary Burce Warlick, Deputy Executive Director, International Energy Agency
Shifting Focus to Emerging Markets
With the COP evolving, the focus of climate adaptation finance is expanding to critical regions in emerging markets and developing economies. This ambition requires establishing a finance system for renewables, electrification, emissions reduction, and robust carbon markets. Key to steering this evolution are robust transition plans and regulated disclosure mechanisms guiding investment decisions, providing transparency on the risks and opportunities for climate investments.
"Imagine if every financial institution supported more sustainable and blended finance. Our world would be different."
- Chang-Ken Lee, President, Cathay Financial Holdings
Key Announcements
From the World Climate Foundation
Launch of the Investment Mobilisation Collaboration Arrangement
The United States and Nordic Countries Launched the Investment Mobilisation Collaboration Arrangement (IMCA) on 4 December at the Blue Zone. IMCA is an innovative initiative facilitating the creation of new blended finance vehicles to de-risk and mobilise USD billions in private capital for climate mitigation and adaptation in emerging and developing markets by 2025. IMCA is a partnership between the US, Sweden, Denmark and Finland. Dialogues with additional countries are developing. The World Climate Foundation is acting as IMCA’s Operating Partner, with support from the Climate Investment Coalition.
Read the Press Release
The 2024 Roadmap
In his closing remarks, Jens Nielsen presented the World Climate Foundation’s Roadmap for 2024, charting a course through six crucial summits that will shape the future of climate and biodiversity action alongside the two pivotal COPs – COP29 and biodiversity COP16. The roadmap includes two World Climate Summits in Shanghai and Brussels, Climate Investment Summit in London and the return of World Biodiversity Summit at New York Climate Week. In addition, our stakeholder networks will continue their journey at key events around the world, from the World Economic Forum in Davos to the World Health Assembly in Geneva, Africa Climate Week, and the G20 meeting in Brazil.
Later Is Too Late
CEO and Founder of the World Climate Foundation, Jens Nielsen joined in the signing of the statement calling to deliver a 1.5C aligned plan in response to the Global Stocktake to come from COP28. Over 1700 CEOs, investors, NGOs, health professionals, scientists, academics, youth leaders and more signed the letter as a source of evidence to push for the best possible outcome of COP28 initiated by the COP28 Presidency.
Launch of the Nature Investment Coalition
The Chairman of the Climate Investment Coalition and Vice-Chair of the World Climate Foundation, Peter Damgaard Jensen, announced the launch of the Nature Investment Coalition (NIC), a collaborative platform across asset owners, managers, financial institutions, project developers, businesses, governments, and civil society. It aims to catalyse $100 billion of investments in nature markets, and nature-based solutions to conserve and restore biodiversity while addressing climate change by 2030.
Introducing the Strategic Transition Framework
In 2024, we will introduce our Strategic Transition Framework, a structured and comprehensive seven-step model, empowering organisations, sectors, and entire economies on their net-zero journey, facilitating bold climate actions to reduce their ecological footprint. The Marrakech Partnership and IPCC are integral components of the Transition Framework, emphasising transparency, reporting, and accountability.
Key Announcements
From our Partners and Speakers
Aik Hoe Lim, Director of the Trade and Environment Division at WTO announced the release of a joint report “International Trade and Green Hydrogen”, co-produced with our partner, the International Renewable Energy Agency (IRENA). The report provides insights into global hydrogen trade and policies for scaling up production.
Eric Haxthausen, Senior Advisor for Climate, Partnerships and Innovation & Chief Sustainability Officer at the U.S. Trade and Development Agency (USTDA) announced a new strategic partnership with Investor Leadership Network (ILN) aiming to help mobilise climate finance from ILN’s global coalition of institutional investors representing over $10 trillion in assets and increase the pipeline of bankable climate transactions in emerging economies.
The Global Tipping Points Report was launched at COP28 on 6 December 2023 and re-launched at World Climate Summit on 7 December. The report is an authoritative assessment of the risks and opportunities of both negative and positive tipping points in the Earth system and society led by Prof. Tim Lenton from the University of Exeter’s Global Systems Institute with the support of more than 200 researchers from 26 countries. The report contains six key recommendations for global coordinated action to trigger positive tipping points.
On behalf of the World Climate Foundation, we would like to extend a big thank you to our partners, members and participants of World Climate Summit 2023 for your valuable contribution.
We are stepping into 2024 with inspiration and hope for even bigger and bolder action. The key lessons and takeaways of the Summit will help drive the climate and nature agenda and focus forward and further the implementation of the Paris Agreements and the Global Biodiversity Framework, towards COP29 and COP16 next year.
“I want to express our sincere gratitude for your unwavering leadership and strong commitment to addressing the most pressing challenges of our time. May our collective commitment to a sustainable and just future carry us forward into the new year, as we go ahead with new inspiration and collaborative spirit. Thank you for being the driving force in our pursuit of not only green transition but also the greater business opportunities of the green economy. I look forward to our continued collaboration.”
- Jens Nielsen, CEO & Founder, World Climate Foundation
Partner News From COP28
WTO-IRENA - International Trade and Green Hydrogen: Supporting the Global Transition to a Low-carbon Economy
Hydrogen produced exclusively from renewable energy — known as green hydrogen — is rapidly gaining importance in supporting the transition to a low-carbon economy. Jointly produced by the International Renewable Energy Agency (IRENA) and the WTO, this publication explores how trade policies can support the development of green hydrogen markets and play a significant role in matching supply and demand for green hydrogen and its derivatives.
Learn more
The International Energy Agency (IEA) released Five Pillars for Action
The IEA’s recent World Energy Outlook 2023 provided five steps to be implemented between now and 2030 to keep the door open for achieving the 1.5 C target:
Triple global renewable power capacity
Double the rate of energy efficiency improvements
Cutting methane emissions from oil and gas sector by 75%
Establish large-scale financing mechanisms to triple clean energy investment in emerging and developing economies
Commit to an orderly decline in the use of fossil fuels
Learn more
Partners of World Climate Summit -
The Investment COP 2023
Our mission is to catalyse the economic transition to a sustainable future by promoting cross-sector collaboration, innovative partnerships and investments in climate and nature-based solutions. Our vision is a net-zero, nature-positive and healthy planet by 2050, in alignment with the goals of the Paris Agreement on Climate Change, the Global Biodiversity Framework and the Sustainable Development Goals.
