[Energy-topia] The Significance of COP28's 'Transition Away from Fossil Fuels' for Korea

Attention Drawn to the Use of 'Transition Away' Instead of 'Phase-Out' in Final Agreement
No Binding Force, but Countries Must Prepare for New Regulations

On the 13th (local time), the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC), which concluded in Dubai, United Arab Emirates (UAE), reportedly saw the participation of at least 2,456 fossil fuel-related lobbyists. This number is nearly four times the number of lobbyists who attended COP27. Perhaps due to their influence, the final agreement of COP28 included the phrase ‘to transition away’ from fossil fuels instead of the initially expected ‘phase-out’ of fossil fuels.

There are many voices expressing disappointment over this. However, conversely, it is important to note that despite unprecedented obstruction efforts by oil-producing countries and oil companies with enormous financial power, the transition away from fossil fuels was included in the COP28 agreement. A government official who attended COP28 said, "The fact that fossil fuels were brought to the table is significant," adding, "Now, people will have expectations for ‘something more’ every time the conference is held." The agreement used ‘transition’ as a verb rather than a noun, which has been interpreted as emphasizing sustainability and action.

In addition, COP28 agreed on a total of eight energy transition packages, including tripling renewable energy capacity by 2030, doubling energy efficiency, gradually reducing coal power generation without reduction devices, and accelerating the development of zero- and low-carbon technologies such as renewable energy, nuclear power, and carbon capture, utilization, and storage (CCUS). This has been evaluated as the strongest energy package ever. The UNFCCC described it as the ‘beginning of the end of the fossil fuel era.’

The COP28 agreement is non-binding. However, it cannot be ignored simply because it lacks enforceability. Major international organizations and developed countries create various regulations based on this agreement. In fact, the International Civil Aviation Organization (ICAO), under the United Nations (UN), adopted the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to reduce greenhouse gas emissions in the aviation sector. CORSIA aims to keep aviation greenhouse gas emissions at 2019 levels and will be mandatory from 2027. The voluntary participation phase 1 will be applied starting next year. The aviation industry must expand the introduction of alternative fuels such as Sustainable Aviation Fuel (SAF).

In July, the International Maritime Organization (IMO) set targets to reduce greenhouse gas emissions by 20% by 2030 and 70% by 2040 compared to 2008 levels, aiming for net-zero emissions by 2050. Domestic shipping companies, which are less prepared, are now under urgent pressure. The shipbuilding industry must also accelerate the development of alternative fuel vessels such as methanol, ammonia, and hydrogen to secure international competitiveness.

At COP28, climate finance totaling $85 billion (approximately 110 trillion KRW), including the Green Climate Fund (GCF), was secured. BlackRock, Brookfield, and TPG Capital agreed to participate in the $30 billion (approximately 39 trillion KRW) climate fund (ALTERRA) established by the UAE. The ‘Green Zone’ set up at COP28 was said to resemble a large-scale expo. Climate change response is no longer just a slogan. A government official who attended COP28 evaluated, "Energy transition and the abolition of fossil fuels have emerged as core agendas for climate change response." This means that industries and governments related to fossil fuels need to refine their strategies more precisely.

This content was produced with the assistance of AI translation services.