Good morning from Geneva.
The world will be “transitioning away from fossil fuels in energy systems” by 2050. That, combined with ambitions of tripling of renewable energy capacity globally by 2030, is the main outcome of COP28, the UN climate meeting in Dubai. Is that a good outcome for business? I asked some executives who were present in Dubai, and this is what they told me:
“The decision to transition away from fossil fuels, triple renewable energy, and double energy efficiency, secures a milestone...for a net-zero future. This is a good first step from a complicated COP process, but not enough given the urgency of the climate challenge. The world will increasingly look to business to turn these words into action.”
—Peter Bakker, CEO, World Business Council for Sustainable Development
“Expectations were low and lobbying by fossil industry and several oil producing nations was intense. In that light having an agreement explicitly calling for net zero by 2050 and transitioning away from fossil was a diplomatic achievement. What now counts is if we can truly translate words into action. […] This assumes no slipping next year when fossil industry gets another shot.” (Editor’s note: Azerbaijan, another country rich in oil and gas resources, will host next year’s climate summit.)
—Paul Polman, Vice Chair, United Nations Global Compact; former CEO, Unilever
To agree to transition away from fossil fuels at the same time as agreeing to triple renewables by 2030 is a pivotal moment in the fight against the climate crisis…The hard work to deliver starts today. It means mobilizing huge investments in renewables, as well as grids and storage, the other two critical legs of a stable energy transition.”
—Ignacio Galan, Executive Chairman, Iberdrola
“The UAE Consensus is a historic step that recognized the importance of the energy trilemma—achieving affordability and availability as well as sustainability—and that on fossil fuels, reduction in demand must be achieved, not just reducing production. And that the transition must be just and orderly and equitable—keeping the growing energy needs of the developing world in mind.”
—Majid Jafar, CEO, Crescent Petroleum
“The good thing is that there is a recognition for the reduction of need for consumption and production of fossil fuels…More than ever before, the conversation has been about adaptation and...a just energy transition. That will be an important factor of roadblocks or enablers...Clarity on global language will bring clarity to the market, which in turn will help capital allocation.”
—Emmanuel Faber, Chair, International Sustainability Standard Board
More news below.
Peter Vanham
peter.vanham@fortune.com
@petervanham
