Landmark fossil fuel agreement and other key takeaways from the COP28 climate conference

The 2023 United Nations Climate Change Conference came to a close on Wednesday after going into overtime as participating countries negotiated the language included in a final agreement on the next steps to address climate change.

The language of the deal accepted this morning says that countries agree to transition "away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero in keeping with the science."

U.S. Climate Envoy John Kerry called the COP28 deal a "clear, unambiguous message" that the world needs to move away from fossil fuels moment in his closing press conference on Wednesday, emphasizing that while compromises had to be made, it's hugely significant that even countries that rely economically on fossil fuels signed onto the agreement to transition away from them in the energy sector.

"For the very first time at a COP, fossil fuels have been on the table as a major part of our negotiations. And the decision that came out of this clearly embraces transitioning away from fossil fuels in energy systems, so as to achieve net zero by 2050," Kerry told reporters on Wednesday.

Climate advocates were concerned that the United Arab Emirates' ties to the fossil fuel industry would impact the outcome of the summit. COP28 President Dr. Sultan Ahmed Al Jaber is also CEO of a state-run oil company.

But experts say while the final agreement isn't perfect, it sends a strong signal that moving away from fossil fuels will bring the world closer to meeting climate goals.

These are the biggest takeaways from COP28:

Fossil fuels included in the agreement for the first time

Nearly 200 nations have agreed to transition away from fossil fuels in the energy sector, the largest source of greenhouses gases that cause global temperature rise, in a landmark consensus touted to drastically accelerate climate action.

When the gavel hit the soundblock to officially call the end of COP28, it signified the concurrence of 198 countries to accomplish the ambitious goal of keeping global temperature rise below 1.5 degrees Celsius, a target set out in the Paris Agreement.

The landmark text, named "The UAE Consensus," calls on parties to transition away from fossil fuels to reach net zero by 2050 and includes a new specific target to triple renewables and double energy efficiency by 2030. It includes the first-ever Global Stocktake, a process for countries and stakeholders to see where they are collectively making progress towards meeting the goals of the Paris Agreement.

Kerry described the COP28 deal as a "sea change" moment in his closing press conference, emphasizing that while compromises had to be made, it's hugely significant that even countries that rely economically on fossil fuels signed onto the agreement to transition away from them in the energy sector.

"This is a sea change moment," Kerry said. "But it doesn't mean you've solved everything overnight. We have to keep pushing."

When asked about the focus on using fossil fuels for energy specifically, which could leave the door open to continuing to use them for transportation or plastics manufacturing, Kerry said compromises had to be made to get every country on board.

"This is a process that's complicated because it was decided years ago when this was set up in 1992 that one country has a veto. One country can say no to the whole thing. That actually makes it even more remarkable that as much ambition is contained in this document," he said.

Experts like Ani Dasgupta, president and CEO of the World Resources Institute, said the decision to include fossil fuels in the agreement was long overdue and "marks the beginning of the end" of the era in which the world relies on the extraction of fossil fuels for energy.

"Fossil fuels finally faced a reckoning at the UN climate negotiations after three decades of dodging the spotlight," Dasgupta said in a statement.

The voluntary agreement also encourages nations to submit plans to reduce emissions from their entire economy and build momentum towards a new architecture to finance the transition to renewable energy.

To keep global climate goals within reach, the world needs to achieve $4.3 trillion in annual climate-related finance flows by 2030, Dasgupta said.

"Despite immense pressure from oil and gas interests, high ambition countries courageously stood their ground and sealed the fate of fossil fuels," he said.

Rich countries implored to do their share

One of the biggest topics going into COP28 was the push for the richest countries in the world, which have historically produced the most greenhouse gas emissions, to provide money to help developing countries transition their energy sectors and adapt to potentially irreversible impacts of climate change.

The UAE Consensus placed into effect the Loss and Damage Fund for countries coping with extreme climate impacts, as well as a global framework for adaptation aimed at helping countries build climate resilience.

The text makes clear that the transition to clean energy will require rich countries to lead in both action and the provision of finance.

The Loss and Damage Fund must be resourced "quickly and robustly" so that climate-vulnerable low- and middle-income countries and get the support they need for coping with extreme impacts of climate change caused primarily by wealthy countries, said Rachel Cleetus, policy director for the Union of Concerned Scientists.

"As the world puts these collective goals into action, richer nations like the United States have a responsibility to take the lead in quickly moving away from fossil fuels and providing scaled-up climate finance for developing countries," Cleetus said. "Without that, we will not be able to succeed in phasing out fossil fuels—which remains essential —nor will we deliver justice for people on the frontlines of the climate crisis."

Developing countries are expected to need $387 billion per year to adapt to the impacts of climate change, according to a UN report. A total $792 million in early pledges to the fund were announced during COP28.

Experts said the next year will be a critical test in raising those funds.

"The shift from fossil fuels must be fair and fast -- and no one can be left behind," Dasgupta said.

In addition, the agreement urges the biggest fossil fuel producers and exporters in the world, including the U.S., to quickly taper down new or expanded fossil fuel production and end fossil fuel subsidies, Cleetus said.

She added that the UAE Consensus is "a necessary complement" to U.S. policies, like the Inflation Reduction Act, aimed at accelerating clean energy momentum domestically.

Was COP28 a success?

While the 2023 climate summit is being hailed as a significant moment, it also missed the mark on several factors that could speed up climate action even further.

The decision acknowledges that even though countries' have made significant progress to reduce the greenhouse gas emissions that contribute to warming temperatures, the world is still on track for 2.1℃ to 2.8℃ of warming which would surpass the Paris Agreement goal to limit warming to 1.5 ℃.

Before the Paris Agreement, climate models projected up to 4℃ of warming.

Cleetus said the UAE Consensus represents a critical step forward in addressing fossil fuels but "falls significantly short" in its considerations of finance and equity provisions needed to ensure a transition to clean energy.

Small island nations who are already facing serious concerns that people will be displaced due to sea level rise have been some of the most vocal critics of the final agreement.

John Silk, minister of natural resources and commerce for the Marshall Islands, said that the agreement is a small step in the right direction but doesn't go far enough to protect vulnerable island nations from the impacts of climate change.

"I came here to build a canoe together for my country. Instead, we have built a canoe with a weak and leaky hull, full of holes. Yet, we have to put it into the water because we have no other option," Silk said in the closing ceremony.

"Not all went well in Dubai," Manish Bapna, president and CEO of the Natural Resources Defense Council, said in a statement. "It's the hottest year on record and an industry hellbent on making things worse packed the halls with an army of lobbyists."

During the closing plenary on Wednesday morning, Al Jaber characterized the conference as productive.

"We have a traveled a long road together in a short amount of time," the president-designate of COP28 said during his remarks. "Over the last two weeks, we have worked very hard to secure a better future for our people and our planet. We should be proud of our historic achievement."