COP 28: What companies and investors should know
COP28 starts today (30 November) and the emphasis will be on ramping up efforts and investment in climate mitigation, adaptation and loss and damage control.
ING Senior economist Gerben Hieminga and ESG specialist Coco Zhang argue in a special ING Think report that policymakers, corporate leaders and investors are likely to leave COP28 with the task of increasing investment in low-carbon technologies.
“Think of more renewables in the power sector, carbon capture and storage in industrial clusters, energy efficiency measures in housing, manufacturing and transportation, and the growth of the hydrogen economy.
“They will also leave COP28 with the task of speeding up climate-friendly behaviour. This could include increasing recycling rates, sharing cars, getting more people in trains and on bicycles as their primary way of transport, and even encouraging them to eat less meat.
Averting loss and damage
“Both technology and behavioural changes are crucial in averting loss and damage from climate change and will require about $5,500bn in investment per year globally up to 2030, according to Bloomberg New Energy Finance.
Gerben and Coco say that despite increased efforts, there is still a huge gap between what is needed and what has been done to keep global warming within a 1.5 degrees Celsius increase.
“Despite increased efforts, there is still a huge gap between what is needed and what has been done to keep global warming at bay. The consequences of climate change – including extreme weather conditions and related health and migration challenges – will become more evident in the coming years, fuelling the debate on mitigation and adaptation policies and measures to cope with loss and damage.
“Governments are the main players at COP, but companies and investors also have a significant role to play. We expect more companies at COP28 than last year – a trend that is likely to continue at future COP meetings,” said Gerben and Coco.