The United Arab Emirates, which holds the COP28 presidency, has released the ‘Net-Zero Transition Charter: Accountability mobilisation for the private sector’ on Wednesday based on the technical report of Global Stocktake of September 8 which showed that the targets set in the Paris Agreement in 2015 are not being met. The agenda of COP28, which is to be held in Dubai from November 30 to December 12, is to review the progress made on the climate agreement reached at the Paris summit in 2015.

The COP28 charter wants to pull in the private sector to put its shoulder to the wheel in achieving the goal of curbing rise in temperature to 1.5 degrees Celsius above the pre-industrial levels. According to climate experts 1.5 degrees Celsius is seen as an inflection point where it is possible to protect the people and the world from an irremediable climate crisis.

Dr. Sultan Bin Ahmed Al Jaber, Minister for Industry and Advanced Technology and COP28 President, said about the Net Charter and the need to get the private sector on board: “The private sector’s engagement in COP28 – their resources, expertise, and commitment – is vital for driving real-world action and achieving the ambitious climate goals set forth by the Presidency. For every pillar of our Action Agenda – fast-track the energy transition, fix climate finance, focus on nature, lives, and livelihoods, and full inclusivity – companies can leverage their strengths and resources to advance our collective climate goals, and provide us with required solutions. The Net-Zero Transition Charter will further enable the private sector to take meaningful action on climate, track progress and be held accountable. We have strong collaboration with the private sector already in the consultation and development of many of the outcomes of the action agenda – and I encourage all eligible private sector organisations to make this commitment and sign the Charter today.”

The move to include private sector participation in the climate conferences is the right step forward. It has been shown that governments and international organisations like the World Bank and the International Monetary Fund cannot on their own meet the challenges of the climate change crisis, and that there is a need for the participation of the private sector. It is also the case that most of the talent and expertise, finding solutions, has been the preserve of the private sector, and it is time that these resources are utilised in facing the greatest challenge that faces the world.

The Charter recognises that the private sector contributes 80 per cent of the global GDP, and it has also a major share in world energy consumption and greenhouse gas emissions. And it makes sense that it should make a proportional contribution to the effort to the climate programmes.

Dr. Al Jaber has also emphasised the need for philanthropic organisations to join the climate battle because they would be “nimble” enough to utilise the governmental and private funds to be put to more efficient use. He pointed out that less than two per cent of philanthropic giving ($810 billion in 2021) was much too small given the magnitude of the climate change issue.

Widening the scope of climate action and including more stakeholders should go some way in grappling with climate change which needs action on a war footing given the increase in extreme weather-events of heat and cold waves, floods and droughts, depletion of water sources and the deteriorating air quality leading to health hazards for millions of people. And more people and more organisations have to be involved in the effort.  The ‘Net-Zero Transition Charter’ is an effective strategy in moving forward on the climate front.