As 2023 draws to a close, we would like to share with you some key highlights of COP28 with a special focus on funding announcements for the Off-Grid Solar Energy Industry.
KEY HIGHLIGHTS FROM COP28
At COP28, leaders from around the world agreed on a new plan for clean energy and for dealing with climate issues. This is particularly important for off-grid solar energy. The conference showed how urgent it is to switch to clean energy and the key roles of funding and teamwork in making this happen. Here are some of the highlights:
Renewable Energy Tripled: World leaders at COP28 concluded with a call to triple renewable energy capacity globally, signaling a historic commitment to move away from fossil fuels.
Solar Industry’s Welcome and Concerns: The solar industry welcomed the renewables target, but the Global Solar Council expressed concerns about specific language, stating that it leaves “too many backdoors” for countries to avoid meaningful decarbonization.
Inclusion of Renewable Sources: Notably, solar, wind, and storage were specifically included for the first time in the outcomes of COP28, underlining their crucial role in a clean and just energy transition. This formal acknowledgment emphasizes the importance of these renewable sources in the global effort to address climate change. However, there are reservations about the insufficient measures against fossil fuel subsidies and the acknowledgment of so-called “transitional fuels” like natural gas.
Global Renewables and Energy Efficiency Pledge: The conference saw 118 countries signing the pledge to triple global renewable energy capacity to 11TW by the decade’s end, excluding major energy producers China and India. The emphasis is now on translating these pledges into actionable steps.
Renewables Growth and Policy Challenges: Opposition to commitments to phasing out fossil fuels came from markets anticipating substantial growth in renewables. The challenge is noted in aligning policy positions with the reality of renewables replacing fossil fuels.
Positive Outlook for Solar Photovoltaic Cells (Solar PV): The International Energy Agency (IEA) projects solar to represent half of all new power capacity through 2030. The determination is positive for the solar industry, especially solar PV, which is expected to play a significant role in global renewables expansion due to its ease of deployment and cost efficiency.
Despite the positive momentum, there is a call for urgent action following the outcomes of COP28, in order to translate commitments into tangible steps and policies. Explore the comprehensive coverage of COP28 events captured by PVTECH.
COP28 Funding Announcements at a Glance:
Let’s explore the impactful financial commitments that unfolded at COP28 to drive positive change on a global scale. Below is a breakdown of the key announcements highlighting significant funding commitments.
- The UAE President announced a $30 billion fund for global climate solutions, which aims to bridge the gap on climate issues and aims to attract $250 billion investment by 2030
- $700 million was pledged to the Loss and Damage Fund to assist lower-income countries facing climate change damage.
- The declaration of a Global Climate Finance Framework comprising of 10 principles for making financing Available, Accessible and Affordable.
- The deadline for the $100 Billion Climate Fund committed by developed nations was extended from 2020 to 2025. The finance institutions contributing to the $100 billion fund include
- multi-lateral development banks,
- bi-lateral agencies, and
- multilateral Climate Funds.
- The Green Climate Fund (GCF) received an additional $3.5 billion in pledges, taking total pledges for the fund to $12.8 billion. The new funding will enable GCF to channel financial resources to developing countries over the 2024-2027 programming cycle that is focused on tackling the impacts of climate change and protecting the most vulnerable communities in the world. Read more about Green Climate Fund’s record funding level.
For more details on what has been agreed upon at COP28 and what happens next, please read further on climate change and sustainability.