WGEO Program at COP29

Panel Discussion by The Energy and Resources Institute (TERI), WGEO Partner

Agenda

• • 10:00 PM – 10:05 AM Dr. Vibha Dhawan, Director General, TERI
  • 10:05 PM – 10:20 AM Keynote Address by Lord Adair Turner, Chair of Energy Transition Commission
  • 10:20 PM – 10:40 AM Panel Discussion

Moderated by Mr. RR Rashmi, former Special Secretary, Ministry of Environment, Forest & Climate Change, Government of India, and Distinguished Fellow, TERI

Panelists:

• Mr. Murtuza Kakuji, Senior Vice President, Avaada Group
• Mr. Shibojyoti Dutta, Head, Environment Centre of Excellence, Tata Steel Limited
• Mr. Andrew Matters, Global Head, Economic Analysis & Policy, International Air Transport Association
• Followed by Q&A session with participants
• 10:40 PM – 10:45 AM Vote of Thanks by Mr. Arupendra Nath Mullick, Vice President, TERI Council for Business Sustainability

Background

The world today is witnessing a paradigm shift on how the future will shape. The adoption of the 17 Sustainable Development Goals (SDGs), covering economic, social development, and environmental protection, provide an opportunity for engagement and a new type of partnership to address the global challenges. One of the key challenges of sustainable development is that it demands new and innovative choices and ways of thinking.

While developments in knowledge and technology are contributing to economic development, they also have the potential to help resolve the risks and threats to the sustainability of our social relations, environment, and economies. New knowledge and innovations in technology, management, and public policy are challenging organizations to make new choices in the way their operations, products, services, and activities impact the earth, people, and economies.

To support this expectation, and to communicate clearly and openly about sustainability, a globally shared framework of concepts, consistent language, and metrics is required. Businesses play a vital role by understanding the opportunities and challenges on one hand, and by mobilizing resources and offering know-how and solutions, on the other. Private sector investments and market-based solutions will be needed to achieve scalable and sustained impact in many sectors, while aligning with <2°C pathways to reduce exposure to climate risks. The UN Global Goals for Sustainable Development offer a
compelling growth strategy, opening up an economic prize of at least US$ 1 trillion by 2030 for the Indian private sector.

In Focus

Herein, collaborative approaches assume significant importance. Such collaborations should leverage capabilities of non-state actors to accomplish the goals of a sustainable and resilient planet. One such effort is illustrated by the fact that leading market players from Indian Industry have come together to sign an ‘Industry Charter for near zero emissions Ambition by 2050’.

Under this voluntary pledge, companies have committed to pursue a set of vigorous decarbonisation measures, both at the company level and collectively, to set an example for industry peers to contribute in meeting the objectives of the Paris Agreement. The corporate climate actions to collaboratively achieve near-zero emissions by 2050 shall pave the pathway to realize the vision for India to become net-zero by 2070. This discourse of collaborative actions shall present an opportunity for the Indian businesses to unlock their full potential and integrate low carbon pathways in their
operations.

Individual challenges such as de-carbonisation are not standalone but are part of dynamic and complex organisational processes and systems that are intertwined with each other. For years now, companies have been working on implementing environmental, social, and governance measures to promote a better world. But some leaders are going beyond checkboxes and charity, reconfiguring their products and services to make sustainability the core of their business itself.

WGEO Official

Background

The green economy transition is imperative for effective climate action and sustainable development, particularly for developing countries seeking to enhance resilience, stimulate economic growth, and play a pivotal role in international efforts to address climate change.

The continued investment in and commitment to green technologies and frameworks position these nations to not only meet their developmental and environmental goals but also to contribute significantly to global efforts in mitigating climate change impacts.

The Imperative of the Green Economy Transition for Sustainable Development and Climate Resilience: The transition towards a green economy, characterized by the adoption of sustainable economic activities, the integration of renewable energy sources, and the implementation of low-carbon technologies, is not merely a strategic approach to combat climate change, but also a significant driver for innovation and emerging economic opportunities, particularly for the countries in the Global South. These nations, disproportionately affected by the adverse effects of climate change such as extreme weather conditions and agricultural disruptions, stand to greatly benefit from the resilience that sustainable land management, enhanced water conservation practices, and renewable energy investments can offer. 

Alignment with Sustainable Development Goals: The international community is in broad agreement on the principle that green transition aligns intricately with the Sustainable Development Goals (SDGs), propelling progress in critical areas such as ensuring availability and sustainable management of water (Goal 6), affordable and clean energy (Goal 7), and decent work and economic growth (Goal 8). The adoption of green policies not only fosters sustainable development outcomes but also attracts foreign direct investments (FDI) into green sectors, propelled by global capital’s increasing focus on projects adhering to rigorous Environmental, Social, and Governance (ESG) criteria. This alignment underscores the holistic benefits of integrating sustainable practices into national development strategies.

Economic Opportunities and Energy Security: In the context of developing nations, where energy security is a paramount concern due to heavy reliance on fossil fuels, investing in domestic renewable energy sources reduces dependency on unpredictable global oil markets, thus enhancing national energy sovereignty and stabilizing energy prices. Such strategic shifts not only support economic stability but also promote national autonomy over energy resources. Furthermore, the green transition catalyzes job creation across new sectors including renewable energy, sustainable agriculture, and green manufacturing – sectors that are inclusive and capable of integrating low-income populations into the workforce, thereby advancing inclusive economic growth.

Leadership in Global Climate Governance: Active participation in the green transition enables developing countries to assume leadership roles in global climate governance. By actively engaging in international climate dialogues and demonstrating robust commitments to green policies, these countries can influence international climate policies and benefit from enhanced cooperation and technical exchanges. This proactive participation is essential for shaping a global response that is equitable and inclusive, ensuring that all nations have a voice in forging pathways towards sustainability.

In Focus

Given the urgency of climate action, this high-level ministerial panel will focus on crucial policy-level issues underpinning the green transition. The discussion will prioritize the development and implementation of robust governmental frameworks that support and accelerate the adoption of green technologies and sustainable financial practices.

Key areas will include policies that incentivize renewable energy investments, carbon pricing mechanisms that reflect the true cost of emissions, and the integration of sustainability into the financial sector. This high-level ministerial panel aims to outline how these policy measures can be effectively implemented to ensure the green transition contributes to global climate mitigation goals while promoting economic stability and growth.

Questions for Panel Discussion

What policy frameworks have proven most effective in accelerating the green transition, and how can these be adopted or adapted globally?

• What are the key features of policy frameworks that have successfully driven the green transition in pivotal countries?
• How can these frameworks be adapted to fit the diverse economic and political landscapes of developing countries?
• What role does international community play in facilitating the global adoption of successful green transition policies?

How can international cooperation be enhanced to align green finance and investment policies across borders to drive global climate action?

• What are the major barriers to international alignment on green finance and investment policies?
• Which international models of cooperation could be considered best practices for fostering effective alignment in green finance?
• How can international agreements and treaties be structured to enforce and enhance cooperation on green finance?

What role can financial institutions play in supporting the green transition, and what policy measures are needed to mobilize a concerted action?

• What are the incentives that can effectively encourage financial institutions to invest in green projects?
• How can regulatory frameworks be designed to ensure that financial institutions are not just compliant, but are active proponents of the green transition?
• What examples of successful partnerships between governments and financial institutions demonstrate effective support for the green transition?

WGEO Official

Agenda

12:30 PM – 12:35 PM : Registration of Participants
12:35 PM – 12:45 PM : WGEO Introductory Video
12:45 PM – 12:50 PM : Opening Remarks by H.E. Saeed Mohammed Al Tayer, Chairman, World Green Economy Organization
12:50 PM – 12:55 PM : Keynote Remarks by H.E. Dr. Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, United Arab Emirates
12:55 PM – 01:10 PM : Review of Actions and Progress: GAGE Activities and Future Plans
01:10 PM – 01:25 PM : Open Discussion and Feedback
01:25 PM – 01:30 PM : Closing Remarks by H.E. Saeed Mohammed Al Tayer, Chairman, World Green Economy Organization

Background

The Global Alliance on Green Economy (GAGE), launched at the 2022 World Green Economy Summit in Dubai, aims to promote sustainable development through international collaboration. Led by the UAE Government and the World Green Economy Organization (WGEO), GAGE supports its 88 member countries in transitioning to green economies by providing technical assistance, facilitating knowledge exchange, and connecting project developers with financial resources.

GAGE’s diverse global network offers members access to financial resources, technical support, and policy guidance, aiding countries at various stages of green economic development. By participating in GAGE, members gain valuable insights into global best practices for green growth.

The First Quarterly Focal Points Meeting in July 2024 established a framework for continuous collaboration and initiated project plans. It was agreed that future quarterly meetings, including the second meeting at COP29 in Azerbaijan, will further enhance coordination and drive global green growth efforts.

The proposed second GAGE focal point meetings, will provide us a valuable opportunity to engage directly with the focal points and the ministerial representatives, allowing us to better understand specific needs and requirements.

Simultaneously technical experts from the World Green Economy Organization (WGEO) will present WGEO possible support packages, highlighting the potential to provide financial and technical resources available towards the implementation of the projects focused on the transition to green economy.

The envisaged outcome is to empower GAGE member countries to take coordinated action towards a green transition and meet their commitments under the Paris Agreement’s NDC submissions.

This regular meeting aims to inspire member countries to expedite their practical action, allowing for an increase in the number of projects implemented annually and promoting the green economy vision across different continents, in line with GAGE’s core mandate.

By fostering continued dialogue and collaboration, GAGE seeks to strengthen collective efforts and advance the global green economy agenda.

In Focus

As previously outlined, the proposed 2^nd Quarterly Meeting is meticulously designed to build upon the progress achieved during the first meeting and the subsequent activities undertaken. The key objectives of this meeting are as follows:

• Review and Endorse Action Points: To review and formally endorse the action points agreed upon during the previous meeting, ensuring that there is alignment and measurable progress on the agreed-upon objectives.
• Capacity-Building Programs: To provide a comprehensive overview of the capacity-building programs implemented since the last meeting, and to outline the planned activities for the upcoming quarter. This will aim to enhance the capabilities of member countries in their transition towards a green economy.
• Solicit Green Projects: To actively solicit green projects from member countries, with the objective of selecting a substantial number for implementation in the forthcoming year. This initiative is intended to advance practical, high-impact projects that support the green economy transition.
• Present Draft 2025 Annual Plan: To present a draft of the 2025 Annual Plan of Activities, reflecting the needs and priorities of GAGE member countries. This plan will guide future actions and strategic planning.

These objectives are designed to steer our collaborative efforts effectively, ensuring that we stay aligned with the overarching goals of GAGE and continue to support member countries in their green economy initiatives.

Identification of Green Projects

The implementation of green projects is central to our collective efforts toward achieving a green transition. This objective can only be realized through the active engagement of GAGE member countries in identifying projects that address their specific needs and align with their Nationally Determined Contributions (NDCs) as part of their commitment to the Paris Agreement. This meeting offers an invaluable opportunity for member states to exchange knowledge, accelerate their initiatives, and enhance their actions to meet their targets under the Paris Agreement.

To date, various projects have been submitted by GAGE member countries for consideration based on their technical and financial feasibility. Detailed information about these projects will be presented during the meeting. We are currently in the process of identifying potential investors and sponsors to support these projects, and member countries are encouraged to provide their input into the selection process.

It is anticipated that member countries will submit at least three priority project proposals, which will be evaluated for potential implementation in the upcoming year. An initial set of criteria will be used to assess the project proposals, which will be further refined in accordance with the inputs and requirements of prospective investors and sponsors.

The priority projects should fit into the four clusters programs identified in the GAGE implementation program which are:

• Sectoral Climate Action for NDCs and LT-LEDS: This program focuses on advancing climate action in key sectors identified in countries’ Nationally Determined Contributions (NDCs) and Long-Term Low Emissions Development Strategies (LT-LEDS), such as energy, transport, waste management, and other priority sectors. The GAGE Secretariat aims to support 50 countries through sectoral capacity-building, develop 15 sectoral projects, and provide partnerships and matchmaking platforms to enhance funding and accelerate emission reductions. Beneficiaries include national teams and private sector companies.
• Article 6 Capacity Building: This program aims to raise awareness and enhance countries’ capacities to participate in carbon markets and non-market mechanisms, such as Article 6.2 (Cooperative Approaches), Article 6.4 (Sustainable Development Mechanism), and Article 6.8 (Non-Market Approaches). The goal is to support 15 countries in engaging with Article 6 mechanisms and provide partnerships and matchmaking platforms for enhanced collaboration.
• Climate Finance Enablers: This program seeks to unlock additional climate finance by supporting countries in enhancing their enabling environments through effective tools and practices. It targets capacity-building and awareness-raising for 50 countries, develops 10 enabling projects, and provides partnerships and matchmaking platforms to enhance climate finance. Beneficiaries include national teams and financial institutions.
• Just Energy Transition: This program supports countries in their clean energy transition through a holistic approach. It focuses on capacity-building for 50 countries on just transition elements, developing 10 enabling environment projects, and providing partnerships and matchmaking platforms to accelerate the transition. Beneficiaries include national economic and social affairs ministries and the private sector.

This quarterly interaction is strategically designed to facilitate an open and constructive exchange of ideas among GAGE member countries, with the ultimate aim of expediting the transition to a green economy. By fostering an environment of collaborative dialogue, the meeting seeks to harness collective expertise, share best practices, and address challenges related to green economic transformation. This dynamic exchange of insights will support member countries in refining their strategies, optimizing their initiatives, and accelerating progress.

WGEO Panel Discussion

Background

The increasing frequency and severity of extreme weather events due to climate change pose significant risks to communities, economies, and ecosystems worldwide. Climate insurance offers a valuable tool for mitigating these risks and building resilience. By providing financial protection against climate-related disasters, climate insurance can help individuals, businesses, and governments to recover from losses and invest in long-term adaptation measures.

Recent studies by the United Nations Environment Programme (UNEP)[1] highlight the growing importance of climate insurance in addressing the impacts of climate change. By providing financial security, climate insurance can enable communities and businesses to rebuild and recover from disasters, reducing their vulnerability to future shocks.

In Focus

Effective climate insurance requires a comprehensive approach that addresses the specific needs and challenges of different regions and communities.

This includes:

• Developing innovative insurance products: Creating tailored insurance products that cover a range of climate-related risks, such as floods, droughts, and heatwaves.
• Improving risk assessment: Enhancing the ability to accurately assess climate risks and pricing insurance accordingly.
• Expanding access to insurance: Ensuring that climate insurance is accessible to vulnerable populations, including smallholder farmers, coastal communities, and low-income households.
• Promoting public-private partnerships: Fostering collaboration between governments, insurance companies, and development agencies to expand climate insurance coverage.

Questions for Panel Discussion

How can climate insurance be utilized more effectively to mitigate risks associated with extreme weather events?

• What are the most effective ways to design and implement climate insurance programs that meet the needs of vulnerable communities?
• How can climate insurance be integrated into broader disaster risk management strategies?
• What role can governments play in promoting the adoption of climate insurance?

What are innovative models of climate insurance that have proven successful in various regions?

• How can parametric insurance be used to provide rapid and predictable payouts for climate-related losses?
• What are the benefits and challenges of community-based insurance schemes?
• How can public-private partnerships be leveraged to develop innovative climate insurance products?

How can insurance products be tailored to the needs of vulnerable populations facing climate impacts?

• What measures can be taken to address affordability and accessibility issues for vulnerable communities?
• How can insurance products be designed to support climate adaptation and resilience?
• What role can microinsurance play in providing financial protection to low-income populations?

WGEO Panel Discussion

Background 

The global trading system plays a critical role in driving economic growth and development. However, it can also contribute to environmental degradation and climate change. To achieve a sustainable future, it is essential to align trade policies with the goals of the Paris Agreement and other international climate agreements.

Recent reports by the World Trade Organization (WTO)[1] highlight the importance of trade in promoting sustainable development and addressing climate change. By adopting trade policies that support the transition to a low-carbon economy, governments can create new market opportunities, foster innovation, and enhance environmental sustainability.

In Focus

To support a low-carbon transition, trade policies should be designed to:

• Promote the trade of environmentally friendly goods and services: Reducing tariffs and other trade barriers for products that contribute to climate mitigation and adaptation.
• Address trade-related environmental measures: Ensuring that environmental regulations do not create unnecessary barriers to trade.
• Foster international cooperation: Strengthening collaboration among countries to address global environmental challenges and promote sustainable development.

Cross-border carbon taxes can be a powerful tool for incentivizing emissions reductions and promoting a level playing field for businesses operating in different jurisdictions. However, the implementation of such taxes requires careful consideration of equity, competitiveness, and international cooperation.

Questions for Panel Discussion

 How can trade policies be aligned to support a transition to a low-carbon economy?

• What specific measures can be taken to promote the trade of environmentally friendly goods and services?
• How can trade agreements be designed to address the environmental impacts of trade?
• What role can trade liberalization play in promoting sustainable development and climate action? 

What are the implications of cross-border carbon taxes and how can they be implemented fairly?

• How can cross-border carbon taxes be designed to avoid trade distortions and ensure a level playing field?
• What mechanisms can be used to address the potential competitiveness impacts of carbon taxes?
• How can the revenue generated from carbon taxes be used to support climate mitigation and adaptation?

How can international trade agreements include provisions that promote environmental sustainability?

• What are the key elements of sustainable trade agreements?
• How can sustainable trade agreements be negotiated and implemented effectively?
• What are the potential benefits and challenges of including environmental provisions in trade agreements?

Joint Panel Discussion by WGEO & UGIH

Background

The transition to a low-carbon economy requires significant investments in sustainable projects and infrastructure. Innovative financial instruments play a crucial role in mobilizing the necessary capital to support this transition. Green bonds, in particular, have emerged as a powerful tool for financing climate-friendly projects and promoting sustainable development.

Recent reports by the International Finance Corporation (IFC) highlight the growing importance of sustainable finance in addressing climate change and achieving the Sustainable Development Goals (SDGs). By providing access to affordable and reliable financing, green bonds can help to accelerate the adoption of clean technologies and reduce greenhouse gas emissions.

In Focus

To maximize the impact of green bonds, it is essential to develop innovative financial instruments that address the specific needs and challenges of different sectors and regions.

This includes:

• Impact bonds: Linking financial returns to the achievement of measurable social and environmental outcomes.
• Green Bonds: Raising capital for projects with a positive environmental impact, such as renewable energy, energy efficiency, and sustainable transportation.
• Blue bonds: Financing sustainable marine and ocean-based projects.
• Climate resilience bonds: Supporting projects that enhance climate resilience and adaptation.

Moreover, it is crucial to ensure transparency and accountability in the use of proceeds from green bonds. This can be achieved through rigorous project evaluation processes, independent verification, and clear reporting standards.

Questions for Panel Discussion

1. What innovative financial instruments have the most potential to drive sustainable projects at scale?

• How can impact bonds, blue bonds, and other innovative instruments be designed to attract investors and support specific climate goals?
• What are the challenges and opportunities associated with developing and implementing these instruments?
• How can these instruments be integrated into broader sustainable finance strategies?

2. How can green bonds be structured to attract more investors and ensure transparency in use of funds?

• What factors influence investor demand for green bonds, and how can these factors be addressed?
• How can green bond standards and certifications be strengthened to enhance investor confidence?
• What role can technology play in improving transparency and accountability in green bond markets?

3. What are the challenges in mainstreaming green bonds in emerging markets?

• How can emerging markets develop the necessary infrastructure and capacity to issue and market green bonds?
• What incentives can be provided to encourage investors to allocate capital to green bonds in emerging markets?
• How can the risks associated with investing in emerging green bond markets be mitigated?

Panel Discussion by Hitachi Energy, WGEO Partner

Background

Achieving the tripling renewable energy target agreed at COP28 requires doubling the global grid investment by 2030 to over USD 600 billion per year, as well as doubling system flexibility until 2030 to accommodate the increasing shares of variable renewables such as solar PV and wind. The enhanced trading of electricity at the regional level will also play a key role both in achieving 2030 targets, as well as improving energy system resilience as envisaged by the 2030 Adaptation Outcomes for Infrastructure.

Trading electricity is uniquely challenging since, unlike other commodities, electricity must be produced and consumed almost instantly, meaning that a constant balance between supply and demand must be maintained in real-time.

Trading electricity between countries has become more common in recent years for a number of reasons including the increasing build-out of cross border interconnectors, as well as the need to integrate more variable renewables. Electricity trading also facilitates coordination and cooperation between countries, enabling countries to assist each other during critical situations. An example was the 2022 shutdown of a large % of French nuclear generation due to a combination of maintenance requirements and a heat wave in the region. Due to France being well interconnected with its neighbors, both physically and through advanced market systems, it could rely on these countries to support the supply of electricity during its time of need.

In Focus

During this session, panelists will discuss the three critical factors to consider when planning to trade electricity at the regional level: physical interconnections, electricity market integration and institutions. They will also provide different examples of regional initiatives from across the world which are contributing to the tripling renewables target as described in the report – Scaling Up Regional Electricity Trading

Questions for Panel Discussion

• In 2023, during the road to COP28, the Sharm El Sheikh Adaptation Agenda Infrastructure Task Force agreed to update the 2030 Adaptation Outcomes for Infrastructure with a focus on energy systems resilience, including, among others, a target to scale up regional power pool integration. Can you tell us why scaling up regional power integration was considered a priority?
• What are the main drivers contributing to the increasing importance of electricity trading in recent years?
• According to the report just launched on Scaling Up Regional Electricity Trading, there are three critical elements to consider: interconnectors, market integration and institutions. Can you tell us more about the role of interconnectors in these initiatives? What social, economic, technical and environmental value can they offer?
• How can scaling up regional electricity trading contribute to the resilience of energy systems?
• Can you share with us some examples of regional electricity trading highlighting different levels of electricity market integration?
• What are the key enablers when accelerating the development of large grid interconnection projects?
• When trying to scale regional electricity trading initiatives, what should be the region’s number 1 priority?