The recently concluded COP28 climate change conference in Dubai witnessed significant pledges from countries and companies aimed at addressing the urgent challenges posed by global warming. Clean Energy Regulatory Reform Advisory (CERRA) identifies that there are three crucial areas for action, focusing on renewables, energy efficiency and energy regulatory frameworks and policies that drive changes. While the pledges made in these key areas are commendable, CERRA’s analysis suggests that they alone may not be sufficient to meet international climate targets, particularly the ambitious goal of limiting global warming to 1.5 °C.

Renewables and Energy Efficiency Pledges:

At COP28, around 130 countries committed to tripling global renewable power capacity by 2030 and doubling the annual rate of energy efficiency improvements each year until 2030. These countries collectively represent a substantial portion of global carbon dioxide (CO2) emissions, energy demand, and GDP. While these pledges mark positive strides toward reducing greenhouse gas emissions from the energy sector, the IEA’s assessment reveals that they fall short of achieving the necessary reductions to align with the 1.5 °C target.

A significant number of companies, responsible for about 40% of global oil production and 35% of combined oil and gas production, pledged to reduce emissions and routine flaring by 2030 through the Oil and Gas Decarbonisation Charter. This commitment addresses a potent greenhouse gas and represents a critical aspect of emissions reduction in the energy sector.

The collective impact of these pledges underscores their positive contribution to mitigating global energy-related greenhouse gas emissions. However, the projected reduction of approximately 4 gigatonnes of CO2 equivalent by 2030, while significant, only represents around 30% of the emissions gap necessary to align with the more ambitious climate scenario outlined in the International Energy Agency (IEA’s) Net Zero Emissions by 2050 Scenario.

While COP28 marks progress, it is evident that countries will need to play their part and conduct the necessary internal gap analysis to better align with the strategic directions set at the conference to accelerate the global transition toward a sustainable, low-carbon future.