The recent COP28 climate conference held in Dubai concluded with a historic agreement to shift away from fossil fuels, marking the first commitment of its kind. Sultan Al Jaber, president of the UN-sponsored summit and the UAE’s representative, played a key role in brokering the deal with strong support from the US and the European Union, while also gaining agreement from Saudi Arabia and other oil producers. The agreement emphasizes the need for countries to swiftly transition their energy systems away from fossil fuels in a just and orderly manner. It also calls for global efforts to contribute to this transition, rather than placing sole responsibility on individual countries.
Al Jaber, who is also the CEO of the Abu Dhabi National Oil Co., remarked that the agreement is an important step in the right direction for the world, as it addresses the need to transition away from oil and gas, which have historically driven the global economy. However, the pace at which this transition will occur depends on the actions of investors, consumers, and national governments. Despite its shortfalls, the COP28 decision marks a significant milestone in the shift towards a low-carbon energy system, including commitments to increase renewable power deployment and energy efficiency gains.
The agreement also underlines the urgency of implementation and the need for tangible actions to support the transition away from fossil fuels, as well as the implications it has for investors and the industry. Al Jaber’s efforts were seen as a diplomatic win, despite initial controversies, resulting in a pivotal role in bringing the oil and gas industry into the COP process.
While the final agreement reflects the concerns of oil-producing countries, the coalition of oil producers was left too isolated to resist the shift away from fossil fuels, indicating a significant and historic outcome that will shape corporate sustainability in the future.
