At COP28 in Dubai, an historic agreement was reached, marking a decisive turning point in the fight against climate change. Fatih Birol, Director of the International Energy Agency (IEA), welcomed the agreement, pointing out that 200 countries had agreed on a new direction for the global energy system. This decision implies a clear commitment from governments, the energy sector and investors to accelerate the transition away from fossil fuels.
Financing Transition in the South
However, Birol pointed to a crucial gap in the COP28 discussions: financing the energy transition in developing countries. Despite progress in advanced economies and China, investment in clean energy in the rest of the world remains stagnant. This gap represents a major challenge for the achievement of global climate objectives, as greenhouse gas emissions know no borders.
Post-COP28 outlook
The IEA boss also stressed that the COP28 agreement sends a strong signal to investors about the risks of investing in fossil fuels and the potential profitability of clean energy. He insisted on the need for concrete and rapid action to reduce greenhouse gas emissions, particularly from natural gas, which will make it impossible to reach the 1.5°C target set by the Paris Agreement.
The COP28 agreement represents an unprecedented global commitment to say goodbye to fossil fuels. However, the success of this transition will depend on the ability to mobilize adequate funding for developing countries. COP29 in Baku will be crucial in addressing this issue and ensuring that concrete action follows through on the commitments made.
