Reuters Impact: Companies call for more action on carbon, subsidies at COP28
06/09/2023 17:59
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Fossil fuel subsidies hampering green energy rollout
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More clarity needed on rules for carbon markets
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Calls echo Africa Climate Summit on faster action
By Simon Jessop, Tommy Wilkes and Emma Rumney
LONDON, Sept 6 (Reuters) - Ditch fossil fuel subsidies,
agree the rules for carbon markets and provide more finance to
emerging markets.
That was the clear message from business leaders at the
Reuters IMPACT conference in London on Wednesday about what they
say needs to happen at the forthcoming COP28 climate summit.
The meeting of world leaders in Dubai beginning late
November is seen as a crucial test of countries' willingness to
accelerate action to limit global warming, with efforts so far
doing little to stem global carbon emissions.
"The past summer again has proved in many parts of the world
that there is a huge need for urgent actions among all
stakeholders. Of course companies but also together with
governments, regulators. We cannot afford to wait," said Peter
Van der Poel, Managing Director at Ingka Investments.
While countries can agree a target, it is companies in the
real economy which will determine whether the goal is met
through their daily operations and investments, and to this end
delegates called on policymakers to take bolder steps.
Many of the corporate delegates echoed calls from African
leaders at the conclusion of a three-day Africa Climate Summit
held in Nairobi this week for developed nations to do more to
help provide finance to developing countries.
Anél Bosman, Group Managing Executive at Nedbank Corporate
and Investment Banking, said the wider world's debate on the
environment had at times sounded "tone deaf" to Africa, with
more focus needed on the importance of social development.
Among the more contentious issues is how to handle the phase
down of use of fossil fuels. Despite this, failure to remove
fossil fuel subsidies would make it harder to expand renewable
energy in some countries, Ingka's van der Poel said.
"It makes it more difficult and less transparent. And
certainly for the bigger financing (into green energy) that
needs to happen, it is an impediment."
Despite the phasing out of fossil fuels, and not least
subsidies, being "the elephant in the room", Helena Viñes
Fiestas, Chair of the European Union's Platform on Sustainable
Finance, said she did not expect to see much progress at COP28.
"So my hope is that we progress on finance, particularly on
adaptation, definitely on the deployment of low-carbon
infrastructure and on the loss and damage fund that was
promised," she said.
Developing the global market to generate, buy and sell
carbon or biodiversity credits was also a key focus for African
leaders as they look for ways to monetise their natural
resources and better pair development with environmental goals.
While many corporates have been keen to buy credits and
offset the emissions from their operations, the market for
so-called voluntary carbon credits has yet to scale, with some
put off by uncertainty around the quality of some credits.
"We want to be as credible as possible, and right now in the
offsetting world it is very difficult to find the right
instruments and the right offsets," said Preeti Srivastav, Group
Sustainability Director at drinks company Asahi Europe &
International 3333.T .
Andy Griffiths, head of sustainable procurement at UK-listed
Diageo DGE.L , also called for "increased rigour and
understanding so that businesses can align and invest
effectively and with certainty as well."
Collectively, though, the world's efforts to reduce
emissions were nowhere near where they need to be, something the
Global Stocktake of efforts so far would highlight in Dubai,
said Vines Fiestas.
"My concern is that we have very little hopes for that
ambition to be raised during COP28," she said.
To view the live broadcast of the Road to COP Stage, go to
the Reuters IMPACT news page:
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(Additional reporting by Richa Naidu, William James and Helen
Reid; Writing by Simon Jessop; Editing by Alexander Smith)
((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052;
Reuters Messaging: Reuters Messaging:
simon.jessop.thomsonreuters.com@reuters.net))