COP28 Presidency launched charter to mobilise and encourage private sector to commit to greater credibility and accountability in their net-zero emissions pledges

A charter has been introduced by the COP28 Presidency to mobilise and incentivize the commercial sector to undertake more audacious climate action and to promise net-zero emissions with more credibility and responsibility. A few weeks before the UN Climate Change Conference in Dubai, the "Net-Zero Transition Charter: Accountability mobilisation for the Private Sector" has been unveiled.

The Charter was created in response to a technical assessment from the September 8 global stocktake, which revealed that the world is not on pace to meet the objectives of the Paris Agreement. The necessity of the business sector in the fight against climate change is acknowledged in the Charter. The majority of global energy consumption and greenhouse gas emissions, along with around 80% of the world's GDP, are attributed to the private sector. In order to close the emissions gap more successfully, the COP28 Presidency has called for a cooperative strategy to cut emissions by 43% over the course of the next seven years. This approach will require funding from a variety of public, corporate, and charitable sources.

By joining the Charter, all organisations will commit to: publicly set 1.5 degrees Celsius aligned, science-based, credible, and transparent Net-Zero 2050 and interim emissions’ reduction targets; do this either through a net-zero aligned national pledge or an internationally recognised net-zero initiative, that holds members to account for their net-zero pledges, or individually following a commensurate scope and level of ambition with the public, third-party validation of their pledge through a generally accepted science-based review process; produce a credible net-zero transition plan, within one year of COP28; and publicly report annual greenhouse gas (GHG) emissions and progress on their net-zero commitment and transition plan, including through high-quality platforms that feed into the United Nations Framework Convention Climate Change (UNFCCC) Global Climate Action Portal.

The UNFCCC's ongoing efforts to develop the "Recognition Accountability Framework for non-Party Stakeholders," initially unveiled at the Bonn Climate Change Conference in June, have a foundational element in the form of the Charter.

In the lead up to COP28, entities will be recognised as signatories if they agree to a national promise that is consistent with net-zero emissions or sign the Charter. Businesses who fulfil all requirements by November 15th will have their profile highlighted on the COP28 website.

It will be mandatory for all signatories to possess the requisite documents and execute the requisite actions to comply with the terms of the Charter. By December 2024, a status report will be released to guarantee accountability and transparency, confirming that signatories have fulfilled the requirements specified in the Charter. Signatories who fail to comply with the terms of the Charter will be removed from the COP28 progress report and website.