COP28: Noteworthy announcements from the weekend
Today the summit will focus on finance, but the weekend saw developments on emissions data, carbon markets and net zero policy
Scepticism about COP28 was given a new boost over the weekend, when the summit’s president, Sultan Al Jaber, was reported to have claimed there was “no science out there” that proves fossil fuels must be phased out to achieve the 1.5°C goal.
But, as the conference heads into its official Finance Day, here are some slightly more positive developments that have taken place over the past few days.
Milestone on free data
On Saturday, a ‘proof of concept’ version of the Net-Zero Data Public Utility (NZDPU) was put out for consultation.
Launched by French President Emmanuel Macron, and billionaire and UN Secretary-General Special Envoy on Climate Ambition and Solutions, Michael Bloomberg, the NZDPU will essentially be a library of free, standardized information about companies’ climate targets and Scope 1-3 emissions.
There are 400 firms in the initial version, based on data disclosed through the voluntary reporting platform CDP, but Bloomberg said in a statement that “many more will come on board”.
He added that the NZPDU will “allow investors and regulators to see which companies are making progress on their commitments, while also empowering the public to hold companies accountable for backing up words with action”.
It will also give companies access to emissions data for businesses in their value chains – useful for Scope 3 reporting – and enable them compare themselves with peers. Carbon offsetting will be covered in a future phase.
The consultation is open until March.
Efforts to drive net zero policy
The Principles for Responsible Investment (PRI) has set up a new taskforce to encourage the development of net zero government policy.
The project is intended to drive forward a recommendation made last year by the UN Secretary-General’s High Level Expert Group on Net-Zero Emissions Commitments of Non-State Entities. It said that “regulators should develop regulation and standards in areas including net zero pledges, transition plans and disclosure, starting with high-impact corporate emitters”.
It called for the creation of “a new taskforce on net zero regulation that convenes a community of international regulators and experts to work together towards net zero” in a bid to tackle fragmentation.
The new Taskforce on Net Zero Policy, whose members are yet to be announced, will seek to do that, bringing together rule-makers to share best practice and try to ensure the interoperability of their policies. It will also provide technical support and advice.
The PRI will host the secretariat. Other supporters so far include the International Sustainability Standards Board, the UN Conference on Trade and Development, the UN Environment Programme’s Finance Initiative, the European Climate Foundation and the V20, a group of finance ministers in economies systemically vulnerable to climate change.
Another move on voluntary carbon markets
Hot on the heels of last week’s new carbon offsetting framework, the International Organisation of Securities Commissions (IOSCO) launched a consultation on Saturday on “a set of good practices to promote the integrity and orderly functioning of the voluntary carbon markets”.
The 90-day consultation centres on a report outlining more than 20 examples of good practice, and highlighting that more disclosure is needed about the way companies use carbon credits. It also suggests firms that rate carbon credits or provide data to the market could be in line to be regulated.
Today sees the start of a run of eight COP28 sessions dedicated to discussing the future of the voluntary carbon markets.