In a significant move towards global climate action, Dr. Sultan Al Jaber, the Minister of Industry and Advanced Technology of the United Arab Emirates and President of the 28th Conference of the Parties (COP28), has unveiled the “UAE COP28 Declaration on the Global Framework for Climate Finance.”
This landmark announcement came during the World Summit on Climate Action, addressing the outcomes of the Global Stocktake in assessing progress towards achieving the Paris Agreement goals and maintaining the critical threshold of a 1.5°C global temperature rise.
Emphasizing the conference’s commitment to fostering consensus among all parties, Dr. Al Jaber highlighted the importance of providing necessary financing to the most needy countries and communities.
This approach aims to ensure equitable and sustainable development for all, thereby protecting humanity and the planet.
The COP28 President’s speech outlined the COP28 Action Plan on Finance, described as an “innovative approach to funding the new climate economy.”
Dr. Al Jaber pointed out the current challenges in accessing climate finance, particularly for countries in the Global South, impacting lives and livelihoods worldwide.
The declaration is set to frame a comprehensive strategy for funding climate initiatives.
Crucially, the declaration proposes a unified approach to enhance climate finance to mitigate climate change impacts.
It was launched in the presence of global leaders who have played a pivotal role in supporting the agenda for developing climate finance mechanisms.
The declaration aims to ensure accessible and affordable climate finance for all, focusing on restoring trust, enabling climate investments to generate economic opportunities globally, and expanding the scope of climate finance.
Dr. Al Jaber emphasized that no single initiative can establish the required climate finance system alone, highlighting the need for collective efforts to build a comprehensive solution framework.
The declaration is expected to build trust between the Global North and South, drawing momentum from existing initiatives like the Bridgetown Initiative, the Accra-Marrakech Agenda, the Paris Charter for People and Planet, the Delhi Declaration of the G20 Leaders, and the Nairobi Declaration of African Leaders on Climate Change.
In line with its strategic initiatives at COP28, the UAE announced the establishment of the Alterra Investment Fund, the largest private climate finance fund.
The UAE has committed 110 billion Dirhams (approximately 30 billion USD) to the fund, aiming to mobilize and stimulate around 920 billion Dirhams (250 billion USD) in private sector investments by 2030.
The Alterra Fund will gather finance from both government and private sectors to channel investments towards global climate solutions, particularly in the Global South.
Additionally, the UAE pledged an extra 735 million Dirhams (around 200 million USD) in Special Drawing Rights to the International Monetary Fund’s Resilience and Sustainability Trust.
This contribution aims to enhance climate resilience in developing countries. The UAE also committed 16.5 billion Dirhams (4.5 billion USD) this year to boost clean energy projects in Africa.
This pivotal declaration by the UAE at COP28 marks a significant step in the global fight against climate change, highlighting the nation’s leadership in fostering innovative and inclusive strategies for climate finance.