Key Highlights from COP28: Decoding the Climate Agreement

During the COP28 talks in Dubai on Wednesday, nearly 200 countries came to a consensus on a new climate agreement after undergoing two weeks of contentious negotiations centered around the fate of fossil fuels. The outcome has been deemed a momentous occasion by some, suggesting that it marks the commencement of the decline of the fossil fuel era, while others have criticized it for being riddled with various loopholes.

Heres why the final agreement is dividing opinion.

Whats in the climate deal?

This marks the first time in the history of the annual UN meeting that countries have been urged to transition away from fossil fuels, which are the primary cause of the climate crisis. The agreement calls on countries to contribute to global efforts to reduce carbon pollution and lists specific actions they can take to achieve net zero by 2050, including transitioning away from fossil fuels in energy systems and accelerating action in this critical decade.

Participants arrive for a plenary session at the COP28 United Nations climate summit in Dubai on December 13, 2023.

Giuseppe Cacace/AFP/Getty Images

World agrees to climate deal that makes unprecedented call to move away from fossil fuels, but cavernous loopholes remain

The agreement does not include a mandatory "phase-out" of fossil fuels, despite the support of over 100 countries, including the United States and European Union. This was strongly resisted by fossil fuel states like Saudi Arabia. Additionally, the agreement sets targets for a threefold increase in renewable energy capacity and a twofold increase in energy efficiency by 2030.

Countries are required to develop comprehensive adaptation plans by 2025 to address the ongoing and potential effects of the increasing climate crisis. The agreement recognizes the necessity of trillions of dollars in funding from wealthier nations to assist climate-vulnerable countries in adapting to climate change and transitioning to renewable energy. However, the deal does not mandate wealthy countries to increase their financial contributions.

What are the loopholes?

In her speech on Wednesday, Anne Rasmussen, the lead negotiator for the Alliance of Small Island States, expressed concerns about the agreement, stating that it contains a "litany of loopholes" which could "take us backward rather than forward."

The Hellisheidi power plant near Reykjavik showcased the Climeworks factory on October 11, 2021. The factory, equipped with fans in front of the collector, draws in ambient air and releases largely purified CO2 through ventilators at the back. The containers at the factory in ICELAND are stacked up in pairs, reaching a height of 10 meters (33 feet), similar to those used in maritime transport.

The fans at the front of the collector pull in ambient air and expel it, mostly free of CO2, through the back vents. (Image: Halldor Kolbeins/AFP/Getty Images)

What is carbon capture? While some believe it holds the potential to save the world, others see it as a risky diversion. These options allow countries to advance zero- and low-carbon technologies, such as carbon capture and storage, which are still in the process of being developed to remove carbon pollution from the atmosphere.

Numerous scientists and experts have expressed skepticism about the effectiveness of carbon capture at a large scale, arguing that it diverts attention from policies aimed at reducing fossil fuel consumption. This could potentially enable polluters to continue burning fossil fuels without consequences.

The International Energy Agency acknowledges a restricted application of carbon capture in energy-intensive sectors like steelmaking, where renewable sources such as wind and solar power are not yet viable alternatives.

What are people saying about the agreement?

Some countries and climate experts are concerned about another "loophole" in the agreement, which acknowledges the continued use of "transitional fuels," widely understood to refer to methane gas, a fossil fuel that contributes to global warming.

Numerous climate negotiators and international organizations hailed the final text as historic and meaningful, although they emphasized that it falls short of addressing the climate crisis adequately and urgently enough. "The key takeaway from this COP is that we are transitioning away from fossil fuels," stated US climate envoy John Kerry during a press conference on Wednesday. Despite acknowledging that the final agreement was a compromise, he described it as a triumph and a validation of multilateralism.

Pioneer Natural Resources equipment is seen near Midland, Texas, US, on Wednesday, Oct. 11, 2203. Exxon Mobil Corp. has reached an agreement to acquire Pioneer Natural Resources Co. for $59.5 billion, marking the supermajor's biggest acquisition in more than twenty years as it aims to establish itself as the leading producer of shale oil.

Michael Ciaglo/Bloomberg/Getty Images

Transition away from fossil fuels? Big Oil has other ideas

Other observers noted the text gives leeway to fossil fuel producers.

Tom Evans, a policy advisor at E3G, stated to CNN that while there are positive aspects in the draft, the message on fossil fuels is unclear. He acknowledged that there is recognition of the move away from fossil fuels, but it is not happening swiftly enough.

"Although the draft conveys that the end is near for the fossil fuel industry," said Teresa Anderson, global climate lead at ActionAid, in a statement. However, she noted that it also includes provisions that benefit companies engaging in greenwashing, such as references to carbon capture and storage, transitional fuels, nuclear power, and carbon markets.

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What else came out of COP28?

The first day of COP28 opened with a surprise agreement to adopt a climate damage fund that was the result of decades of hard-fought negotiations.

Many nations, such as the UAE, the host country of COP28, have collectively pledged over $700 million to assist the most heavily impacted countries in dealing with the repercussions of the climate crisis.

A flare burns off excess gas from a gas plant in the Permian Basin in Loving County, Texas, U.S., November 25, 2019. Picture taken November 25, 2019.REUTERS/Angus Mordant

Angus Mordant/Reuters

The US has declared a new rule aimed at reducing potent methane emissions from the oil and gas industry by almost 80%. Additionally, other climate finance commitments were made at the summit, including the UAE's pledge to establish a $30 billion climate finance fund and invest $250 million in it by 2030.

Vice President Kamala Harris announced during her visit to COP that the US will contribute $3 billion to the Green Climate Fund, which aims to help developing nations adjust to the climate crisis and reduce fossil fuel pollution. Additionally, there was a strong emphasis on reducing methane emissions, with the US committing to regulations that will reduce methane pollution from the nation's oil and gas industry by almost 80% by 2038.

What comes next?

And by the end of the decade, 50 leading oil and gas companies such as Exxon and Saudi Aramco have pledged to reduce their methane emissions, with each company committing to decrease their methane intensity by approximately 80% to 90% by 2030.

Once the agreement is finalized, countries must revise their national plans by 2025 to lower emissions. They will need to outline the specific reductions in planet-warming pollution by 2035.

The US and China, the top two emitters globally, have pledged to include all economy-wide climate pollution in their plans. They have also committed to cutting emissions from non-CO2 gases like methane and hydrofluorocarbons. This marks a significant commitment from China, which emits more carbon dioxide than all developed countries combined.

On Wednesday, Kerry stated that the two countries were leading the way in urging other nations around the world to take action. However, Kerry cautioned that greater ambition is necessary to prevent the most severe consequences of the climate crisis.

Attention will now move to next years summit. After a fraught selection process, Azerbaijan, another major oil and gas producing nation, was tapped to host the 2024 talks.