After COP28: What's next for financial institutions?

The 28th Conference of Parties (COP 28) took place in Dubai in December, just before the holiday season. Amidst the hottest year on the observation record, this was the major climate event of 2023, shaping global responses to climate change. COP28 provided a unique opportunity to explore the confluence of regulatory requirements and global environmental initiatives with far-reaching impact across regions and sectors, including financial institutions. The main objective of COP28 was to take stock of the progress made by the parties on the implementation of the Paris Agreement and to agree on a course of action to dramatically reduce greenhouse gas emissions and protect lives and livelihoods.

The discussions lasted longer than expected, and the final conference statement was released only after a long night of debates between the delegates. It is the first time that the world united around a clear text on the need to transition away from fossil fuels.