COP talks go into overtime

Dec 12, 2023

THE BIG IDEA

Activists demonstrate with a sign that reads "Don't fail us phase out fossil fuels" at the COP28 U.N. Climate Summit.

Activists demonstrate with a sign that reads "Don't fail us phase out fossil fuels" at the COP28 U.N. Climate Summit, Tuesday, Dec. 12, 2023, in Dubai, United Arab Emirates. | Peter Dejong/AP

TIME'S UP — The UN's climate summit in Dubai has gone into overtime as negotiators struggle to reach consensus on the future of fossil fuels in the broader effort to fight global warming. After a promising start, COP28 lost momentum amid conflict between those pushing for an end to oil and gas production and use and those seeking less severe steps.

As of Monday, the prospect of bridging that gap was looking bleak, with organizers of the climate summit releasing a draft proposal that suggested reducing use of fossil fuels instead of phasing them out, our Karl Mathieson, Zia Weise and Sara Schonhardt reported from Dubai.

During a closed-door meeting that ran Monday and into Tuesday, U.S. climate envoy John Kerry said the draft text “really doesn’t meet the expectations of this COP in terms of the urgently needed transition to clean sources of energy and the phaseout of fossil fuels.” The European Union, vulnerable island nations and environmental groups have all been pushing for stronger language.

The problem at hand: Countries like China and India have said they are against language that proposes phasing out or phasing down specific energy resources.

Anything short of an agreement to phase out fossil fuels would be a disappointment to clmate activists, who said before COP28 that the talks would be a failure if they did not call for phasing out the production of coal, oil and natural gas.

“The world desperately needs to phase out fossil fuels as quickly as possible, but this obsequious draft reads as if OPEC dictated it word for word,” former U.S. Vice President Al Gore said in a statement on Monday. “It is even worse than many had feared.”

The text released included a list of measures that nations would agree to pursue — voluntarily — including tripling global capacity of renewables by 2030, doubling the rate of energy savings through efficiency measures, “rapidly phasing down unabated coal” and limiting licenses for new power plants.

It avoided the demands to “phase out” fossil fuels, instead suggesting that countries commit to “reducing both consumption and production of fossil fuels … so as to achieve net zero by, before, or around 2050.”

WASHINGTON WATCH

SUBPOENA TIME — House Judiciary Committee Chair Jim Jordan has subpoenaed a pair of asset managers seeking information about their sustainable investment policies as part of his panel's investigation into whether those companies are illegally working to decarbonize the economy, Allison reports.

The Ohio Republican's actions against the Vanguard Group and Arjuna Capital come months after the committee asked the companies to turn over documents and communications that might reveal “collusive agreements” among companies that might violate U.S. antitrust laws.

The committee's investigation is part of broader Republican pushback against companies that are pursuing net-zero policies that they say are promoting a progressive agenda and hurting the U.S. economy.

Jordan said the responses from Vanguard and Arjuna inadequate. In a letter accompanying the Vanguard subpoena, he said hundreds of documents the company provided “were not responsive to the Committee’s requests.”

Vanguard said in an emailed statement that it is "committed to working constructively with lawmakers and has cooperated with the Committee’s requests, including producing tens of thousands of pages of relevant documents to date.” A representative for Arjuna didn’t respond to a request for comment.

Sustainable Investing

INVEST IN NATURE? — You may be able to invest in companies trading on the New York Stock Exchange with a unique dual purpose: to protect nature and make money, Jennifer Yachnin reports.

The Securities and Exchange Commission is considering an NYSE proposal to offer a new kind of investment called “natural asset companies,” or NACs.

The exchange operator is proposing to list companies with missions to improve ecosystems and then put a dollar figure on the resulting benefits.

To qualify as an NAC, a company would need to document how it is improving the lands in its portfolio. The companies would be responsible for the “conservation, restoration, or sustainable management” of those lands, such as improving wildlife habitat or ensuring clean air.

Some critics have opposed the concept as allowing companies to make money off aspects of nature that belong to everyone.

Conservative lawmakers and property rights advocates have also warned that NACs could open a backdoor into management restrictions for public lands and waters and have raised questions about whether the investments are even viable.

YOU TELL US

GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. Join us every Tuesday as we keep you in the loop on the world of sustainability.

Team Sustainability is editor Greg Mott and reporters Jordan Wolman and Allison Prang. Reach us all at gmott@politico.com, jwolman@politico.com and aprang@politico.com.

WHAT WE'RE CLICKING

— POLITICO magazine, via Annie Snider, takes a look at the 27-year-old who is playing a pivotal role in efforts to resolve the generations-old conflict over Colorado River water.

— Green parties have led the way in shaping European climate policy, so why are they having trouble winning elections? The Economist explores.

— Adaptation will become increasingly important in the global effort to cope with climate change, but the financial system is currently underinvested in it, Bloomberg reports.

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