Following the COP27 conference in Sharm El-Sheikh, Dr. Dalia Abdel Kader, CIB Egypt’s Chief Sustainability Officer, reflects on key outcomes and the expectations they set for COP28 in Dubai.
Global Finance: The Loss & Damage agreement is a significant development in global climate policy. How did it come about at COP27?
Dalia Abdel Kader: At COP27, developed countries officially recognized the concept of “loss and damage” for the first time after years of climate negotiations. This acknowledgment came as a result of persistent advocacy by vulnerable nations, which have been disproportionately affected by climate change despite contributing minimally to the crisis.
Historically, high-income countries, particularly the U.S. and the E.U., had resisted efforts to address loss and damage, often dismissing proposals from groups like the Alliance of Small Island States. While earlier attempts, such as the establishment of the Santiago Network for Loss and Damage at COP25, provided some support through research and technical assistance, the creation of a dedicated Loss & Damage fund was postponed at COP26.
COP27 highlighted the effectiveness of coordinated action by climate-vulnerable countries, pushing forward the Loss & Damage fund as a step towards climate justice.
GF: Why were climate-vulnerable nations particularly effective at COP27?
DAK: At COP27, African and other developing nations played a central role in advancing the Loss & Damage fund and pushing for broader climate action. Their effectiveness stemmed from a unified approach that emphasized the urgent need for mitigation, adaptation, and financial support.
Climate change impacts are now felt worldwide, affecting both developed and developing nations. Extreme weather events have caused significant damage in countries like the U.S. and across Europe, highlighting the universal nature of the crisis and the shared responsibility to address it.
GF: What is the anticipated impact of the Loss & Damage agreement?
DAK: The Loss & Damage fund represents a crucial step in acknowledging and addressing the environmental damage caused by wealthier nations. It aims to bridge the $600 billion adaptation gap and support developing countries in transitioning to renewable energy, reducing carbon emissions, restoring ecosystems, and enhancing biodiversity.
The fund is expected to become operational by COP28, with contributions from developed countries and international financial institutions.
GF: What were other significant outcomes from COP27?
DAK: COP27 saw unprecedented involvement from various sectors, including civil society, businesses, NGOs, and academia, all contributing to the climate agenda. The Green Zone and Innovation Hub were active with new ideas and solutions, and youth engagement was notably impactful.
Despite the geopolitical tensions from the Russia-Ukraine war and the resulting energy crisis, COP27 maintained a focus on decarbonization. A new mitigation work program was launched, extending through 2026, and governments were urged to enhance their 2030 climate targets and phase out fossil fuel subsidies.
The conference also advanced climate adaptation efforts with the Sharm El-Sheikh Adaptation Agenda, targeting 30 global outcomes by 2030. Additionally, COP27 emphasized the importance of nature-based solutions for ecosystem restoration, marking progress with initiatives like the Enact Initiative for Nature-based Solutions.
GF: How are banks like CIB supporting the transition to sustainable economies?
DAK: Sustainable finance is crucial for fostering a climate-resilient world. Banks in developing countries play a key role in driving systemic change towards sustainability.
CIB has been committed to sustainability since 2015, integrating ESG principles into our operations. Our participation in COP27 underscored our leadership in sustainability and innovation. Post-COP27, we are focused on accelerating transitions for our clients and community through various initiatives, including sustainable finance instruments, carbon-emission reduction audits, and educational programs like the CIB Sustainable Finance Academy.
GF: What are the key objectives for COP28 in the United Arab Emirates?
DAK: The main goals for COP28 are to ensure the Loss & Damage Fund is fully operational and to review the progress of the Paris Agreement to determine if global emission-reduction targets are on track to meet temperature goals.
COP28 in Dubai is expected to build on the progress made at previous COPs and continue advocating for the needs of developing economies. The role of non-state actors will also be pivotal, as they drive innovative approaches to climate challenges.
