In the last Quarter of 2023, the focus of the world was on the United Arab Emirates which hosted the Conference of the Parties (COP28) in Dubai, under the aegis of The UN Framework Convention on Climate Change (UNFCCC). The proceedings comprised two weeks of negotiations, disagreements, compromises, pledges and commitments, culminating in some 150 countries agreeing for the first time ever at a COP to “transition away from fossil fuels in energy systems” in a “just, orderly and equitable manner.”

That the Dubai Declaration is an important recognition that richer countries are expected to move away from coal, oil and gas more quickly is a moot point. What is important is whether a collaborative political will and global leadership to affect such a transformation exists and whether countries are committed to act beyond their mere national and self-interest as opposed to the current fragmented and in some respects competing pathway to climate action.

The IsDB Group and ICIEC were once again proactive participants in COP28 given that the UAE is a key member of both institutions, as they were in COP27 in Sharm El Sheikh, Egypt, and plan to be in COP29 in Baku, Azerbaijan in 2024. The fact that COP27, 28 and 29 are being hosted by three important IsDB and ICIEC Member States has reinforced the importance of climate action, adaptation and finance and its potentially debilitating impact also on food security in Member states. ICIEC marked its participation in Dubai by launching its Climate Change Policy and ESG Framework at COP28.

ICIEC is committed to helping its 49 Member States achieve their development goals, including resilience, mitigation and adaptation to the threats posed by climate change. ICIEC’s risk mitigation solutions are directed towards various sectors, with US$2.35 billion going specifically into clean energy initiatives such as solar energy systems and wind farms. At COP28, IsDB President, Dr. Muhammad Al Jasser, unveiled a US$1 billion climate finance initiative for fragile and conflict-affected member countries over the next three years. The Group’s participation included a motley of panel discussions, MoUs, financing agreements and accession to IRENA’s Energy Transition Accelerator Financing (ETAF) Platform and toolkit.

In this Fourth Quarterly Newsletter of 2023, we have dedicated the issue to our own outcomes and shortcomings stocktake of the proceedings at COP28 Dubai and the legacy it has left for the next two COPs in Baku, Azerbaijan in 2024 and in Belem, Brazil in 2025. Our focus includes two Insight articles looking at important aspects of the COP28 proceedings in Dubai in December 2023. One article looks at how Export Credit and Investment Insurance (ECII) can enhance the urgency and demands of decarbonisation and clean energy through increased and innovative de-risking and credit enhancement solutions. Another article is about providing a dispassionate assessment of the outcomes – successes and shortcomings – of COP28.

In our Member Country Profile in this respect, Oguz Aktuna, Acting Manager, Asia Region Division, Business Development Department at ICIEC, highlights Azerbaijan’s clean energy transition status and its Net Zero pathway, and ICIEC’s recent and future involvement in the country’s SDG and decarbonisation journey.

We have an exclusive interview with Francesco Le Camera, Director-General of the International Renewables Energy Agency (IRENA), in which he discusses the challenges and opportunities for renewable energy at a time when current global and national commitments fall short of the necessary levels required by between 30-50 percent. We also have our regular Meet the Team feature, where Salih Suwarelzahab, Senior Legal Counsel & Climate Action Team Lead, ICIEC, discusses the rubrics of ‘Charting a Post-COP28 Climate Action Path incorporating ICIEC’s Green Leap Forward.’ This is followed by our regular Business Update and Project Highlights, and News and Events about the industry in the Quarter.

Sincerely,

Oussama Kaissi

Chief Executive Officer, ICIEC