Unveiling Insights: A Journey Through COP28 with Vanessa Claudia
Meet COP28 Virtual Pass Winner
I’m Vanessa Claudia, an OPF Academy Cohort 2 Fellow and recipient of the COP28 virtual pass. My sustainable development journey began in 2019, working on Marine Protected Areas in Indonesia with an International Donor Aid Agency. Now based in Indonesia, I'm proud to note that the country ranked 5th in COP28 participation, with 17-30 forestry carbon offset projects underway, aligning with the conference's push for a low-carbon global economy. My experience with MPAs revealed a conflict between ocean preservation and our fossil fuel-dependent energy system, particularly relevant as COP was hosted by the UAE, a major fossil fuel producer. A notable community event highlighted the challenges faced by regions like Barbados, where offshore drilling threatens marine biodiversity in MPAs. The Academy was pivotal in shaping my understanding and prepared me to actively participate in the discussions at COP28. Its curriculum provided me with foundational knowledge and equipped me with frameworks and methodologies applicable across various cross-sectoral practices within the realm.
COP28 Key Takeaways
Among the array of notable highlights and observations stemming from my virtual COP28 experience, a few stood out. I was particularly enthusiastic about the industry advancements integrated into the Global Stocktake—a pivotal process outlined in the Paris Agreement. This Stocktake evaluates global progress toward long-term climate objectives, scrutinizing endeavors to mitigate warming and adapt to its consequences. It upholds accountability, transparency, and momentum in global climate endeavors, nurturing a collective comprehension of advancements and hurdles in transitioning towards a low-carbon, resilient future.
Another compelling observation revolved around the evolution of the Clean Development Mechanism (CDM), included in Article 6.2 of the Paris Agreement. This mechanism emphasizes voluntary carbon offset reduction initiatives specified in Nationally Determined Contributions (NDCs), offering verification and assurance regarding the caliber and integrity of carbon credits, addressing Article 6.4 concerns. Moreover, the recognition of climate change's impact on Agriculture & Food, and the imperative need to reevaluate Climate Finance, emerged as another pivotal domain witnessing significant headway.
Below, I offer insights gleaned from diverse sessions I participated in and remained abreast of crucial COP updates, encapsulating some of my most salient takeaways.
Article 6 Provides Guidance for Implementation of National Carbon Emissions Reduction Targets
Depending on the level of sophistication of a country’s emission reduction targets, there was a large discrepancy in technical capabilities in developing robust reduction plans, especially between developed and developing countries.
Therefore, technical and regulatory guidance laid out in Article 6 was essential for countries to acquire detailed standards, methodology, and tools for the operationalization of countries’ carbon emission targets.
The revision of the Clean Development Mechanism (CDM) from the Kyoto Protocol laid the groundwork for considering an Article 6.4 mechanism for high-quality carbon credits, whereby both developed and developing countries collaborated on capacity-building efforts and implementing NDCs.
There was a critical role for diverse stakeholders, including civil societies, the private sector, and relevant institutions, to contribute to Nationally Determined Contributions (NDCs). This role had been largely underutilized in the past and reflected a broader and more inclusive approach to climate action.
The above changes to the CDM provided a clearer path on how carbon Measurement, Reporting, and Verification (MRV) could become more transparent, and it was clear that a one-size-fits-all approach had not worked due to differences in countries, including their technical expertise, maturity of carbon credit markets, and the level of implementation of their Nationally Determined Contribution targets.
Why is this important?
Implementation of national carbon emissions reduction targets are essential to achieving the 1.5 degrees goal set as part of the Paris Agreement. Naturally, different nations are coming from different baselines so sharing best practices on implementation is one of the primary purposes of convening countries at COP28.
Concerns Around Carbon Offset Projects Lead to Negotiations Around Baselines and Lack of Interoperability
Carbon offsets have enabled entities to compensate for their carbon dioxide emissions by investing in projects like renewable energy, reforestation, or carbon removal that reduce or remove greenhouse gases from the atmosphere.
Concerns, especially throughout 2023, highlighted the importance of quality and integrity of carbon offsets, especially when large carbon offset projects were found to be almost worthless.
It was evident that additionality of carbon offset projects was critical. Carbon offset projects were measured against a baseline, and especially in the case of REDD+ carbon projects, it had to be clear that new carbon offset projects related to carbon sequestration activity that was additional to what would have otherwise happened.
Critics raised concerns about the lack of quality principles of carbon projects, including additionality, permanence of stored carbon, double counting of emissions reductions, and the lack of transparency and standards in the offset market.
Developing countries often lack the technical capabilities to assess emission factors accurately. Additionally, there was no universal rule currently applied in deciding which emission factors should be used, and this was made even more complicated due to the different types of emissions and gases that existed (e.g., carbon dioxide, methane, nitrogen, etc.).
Frameworks like the GHG Protocol, and the ISO Net Zero standard, were examples of the needed consolidation of methodologies to help with standardizing these accounting frameworks.
In one of the negotiating sessions that I attended, it was highlighted that the majority of carbon emissions in South Africa came from fossil fuel combustion. However, government-imposed taxes in South Africa have led to smaller-scale projects contributing to Nationally Determined Contributions (NDCs).
Why is this important?
Addressing these concerns and negotiating agreements on baselines and interoperability is critical for enhancing the credibility, transparency, and effectiveness of carbon offset projects worldwide. It can help build trust among stakeholders, and encourage greater participation and investor dollars into climate mitigation efforts, ultimately contributing to the achievement of Paris Agreement goals and broader sustainability objectives.
Taxes and Border Crossings Become Barriers to Investing in Carbon Credits:
Analyzed carbon market transactions revealed variations across countries, which can be quite complex. Taxes often play a role, especially when carbon offset credits are sold across borders.
Additionally, selling in one country over another poses challenges, particularly regarding pricing. For example, selling in Country A might be more appealing due to its robust carbon market, whereas in Country B, where the market is less active, prices may be lower, reducing investors' likelihood to sell their carbon credits in those markets.
The lack of registered CDM projects in some countries impacts data availability for investment analysis, leading to uncertainty and lower rates of investment.
Policies around carbon markets can serve as barriers when countries lack technical capabilities or market guidance on implementation. For example, mandated policies often face implementation challenges due to a lack of resources - particularly in developing countries.
One of the most glaring issues found was with carbon emissions calculations. Conservative approaches to these calculations tend to overlook accuracy, particularly in developing countries where we often rely on blanket emissions factors and methodologies. Consequently, COP discussions underscored the critical need to enhance precision in identifying emission factors and, consequently, in our emission calculations.
Why is this important?
When building the future policy frameworks for carbon credits, countries come from different baselines - developing countries often don’t possess the technical capabilities in-country to implement carbon credits effectively as local compliance markets. Additionally, trading between country compliance markets introduces added complexity to pricing, requiring significant of upfront work and cooperation to iron out how to manage carbon credits, similar to other global financial markets.
UAE Declaration to Reach 1.5 Degrees While Agri-Food Adaptation Aims to Enhance Food Access and Agri-Food Solutions Capacity-Building
In a global first, the “UAE Declaration” received signatures from 152 countries which emphasized the alignment of efforts to reach 1.5 Degrees by addressing emissions from the global food supply chain and tackling climate change impacts on food security.
Agri-food adaptation and innovation programs have excitingly attracted multi-stakeholder financing at the country level, donor aids, and private-sector engagement. These efforts aimed to enhance access and capacity-building while ensuring the implementation of sustainable agriculture and food mechanisms within climate policies.
In addition, the Food and Agriculture Sustainable Transformation (FAST) program supported climate-vulnerable countries’ agriculture and food systems for the first time by establishing connections between climate change and food supply chains, while also recognizing that youth in developing countries are predominantly engaged in agriculture.
The Food and Agriculture Organization of the United Nations (FAO) emphasized the mounting threat of climate change-induced loss and damage to agrifood systems. FAO aims to enhance access to financing, particularly considering that agrifood is the least invested sector in Climate Finance, contrasting with the business-as-usual agriculture scenario.
For the first time, food was on the agenda which was crucial given its severe lack of funding.
New Zealand’s National Adaptation Plan stated investments in technology and livestock research, committing to reducing net emissions to 50% below 2005 levels by 2030 and net-zero carbon emissions by 2050.
Excitingly, an evidence-based monitoring pipeline was proposed to understand where Climate Financing from intergovernmental and donor aid organizations should be directed, as funding to date has failed to reach its intended target in alignment with emissions reduction action.
Why is this important?
This is the first time food has been included in the agenda at a COP, underscoring the interconnectedness of climate, agriculture, and food systems, as well as the heightened allocation of funding dedicated to addressing this specific climate challenge.
Applying OPFA Learnings to COP28 & Concluding Thoughts
The OPFA curriculum provided a comprehensive understanding of the scientific foundations behind the Paris Agreement's 1.5 degrees goal and introduced the Science-based Targets Initiative (SBTi), broadening my perspective on addressing climate change.
The Academy discussions on the carbon value chain and offsets prepared me for the nuanced discussions at COP28, particularly regarding carbon markets. The program emphasized practical solutions implementation, including best practices for calculating carbon offset emissions and engaging the private sector in initiatives such as carbon capture technology.
Expert Academy speakers, like Ollie Haas, shed light on topics such as the aviation industry and hydrogen, highlighting key technological advancements emphasized at COP28.
Keeping pace with the constant evolution of this sphere can be challenging, but having a supportive community of like-minded individuals proves empowering, especially during moments of doubt or differing perspectives. The key to continuous growth lies in fostering self-assurance in our ability to tackle challenges and innovate solutions.
Participating in COP28 has been a profound experience, representing the culmination of collaborative efforts within the sustainability sector. It has revitalized my sense of purpose and provided me with a renewed perspective on this ever-evolving field. Throughout my interactions within OPF communities and among key stakeholders and community representatives at COP28, I've discovered that this field is inclusive and welcoming to individuals from diverse backgrounds, spanning across generations.
My engagement in COP28 remains a pivotal highlight of the past year, and I am grateful to OPF for facilitating this opportunity and enabling me to contribute to their mission of training and activating 100k sustainability professionals for 2023. This initiative represents a significant stride toward fostering a sustainable future.
Want to learn more about my OPF Academy or my COP28 experience? Let’s connect. I'd be delighted to answer any questions and provide further details about my experience.
