In the early hours of 13 December, an agreement was reached in Dubai at the 28th Conference of Parties to the UN Climate Convention, COP28. The UAE Consensus included a commitment to transition away from all fossil fuels, following intense negotiations over two weeks, and a heavily criticized first draft that was released on Monday. The revised – and final – version represents the first time in COP history that words ‘fossil fuels’ appeared in an agreement. It also included a specific target on tripling renewables and doubling energy efficiency by 2030. “It is an enhanced, balanced — but make no mistake — historic package to accelerate climate action,” COP28 President, Dr Sultan Al Jaber, said, after delegates rose to their feet in to applaud the deal. This COP is reportedly the most significant since the Paris Agreement in 2015, when the countries of the world agreed to limit global warming to 1.5°  above pre-industrial levels. Although not without criticism (natural gas is still identified as a transition fuel, despite causing global warming, for example), responses to the agreement have been positive. Speaking on Irish radio, Minister for Climate, Environment and Communications, Eamon Ryan, T.D., said that the deal is not just about transition away from fossil fuels, but also “building a new, renewable and energy-efficient future and critically changing the entire financial architecture in the world to make that happen everywhere in the world.” Marie Donnelly, Chair of the Climate Change Advisory Council, described the COP process as defeating  the ‘very visible attempt’ by the fossil fuel industry to derail the process and deny the science: “From my perspective, that is a real success… this is the signal. This is effectively the starting gun. Now, we can be serious about the discussion of phasing out fossil fuels.” COPs have come in for much criticism for being too large, too bureaucratic and too much at risk of being influenced by major polluters, the lobbyists of which can outnumber the collective representatives from those countries most vulnerable to the impacts of climate change; however, all parties at the climate summits must agree on every word of the agreements, and to some it underscores how much these UN conferences can achieve. Speaking about this agreement, Special climate envoy to Prime Minister Mia Mottley of Barbados Avinash Persaud stated “When the dust settles and dawn breaks, this will be seen as one of the most historic COPs."  As parties prepared to leave the two-week conference, UN climate chief, Simon Stiell, who described the agreement as “the beginning of the end for fossil fuels”, reminded governments of the next steps:   “We must get on with the job of putting the Paris agreement to full work…In early 2025, countries must deliver new NDCs [‘nationally determined contributions’, i.e. efforts by each country to reduce national greenhouse gas emissions and adapt to the impacts of climate change]. It must bring us into alignment with a 1.5C world. We will keep working to improve the process.” His final message, though, was to ‘ordinary people everywhere’: “Everyone one of you is making a difference. Your voices and determination will be more important than ever. We are still in this race. We will be with you every step of the way.”   Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre. 

  Tensions rose at COP28, the UN climate summit in Dubai, with the publication of a new draft agreement, announced at 2pm GMT. The draft was published after COP President, Sultan Al Jaber, had been meeting with all countries in a format called ‘the Majlis’. An Arabic term, ‘Majlis’ are used to refer to a council or a special gathering, typically bringing together a community of elders. Ireland’s Environment Minister, Eamon Ryan, represented the EU in a Majlis of climate ministers, who were encouraged by Sultan Al Jaber to sit in a circle and speak “heart to heart”, to break the deadlock in phasing out fossil fuels. Earlier, the head of the United Nations, António Guterres, had called on world leaders to “end the fossil fuel age” as he returned to COP28 for the final days of the summit. According to the draft agreement, fuel production and consumption will be reduced by 2050 in line with scientific advice. It proposes an approach that “could” include “reducing both consumption and production of fossil fuels, in a just, orderly and equitable manner so as to achieve net zero by, before, or around 2050 in keeping with the science”. While the current text of the agreement avoids the contentious terms ‘phase out’ and ‘phase down’, the wording still requires countries to reduce their fossil fuel production; however, the text has been criticized for being “grossly insufficient.” “We can’t accept the text,” Minister Eamon Ryan reportedly said, adding: “That ‘could’ kills everything”. Other news made headlines from the negotiations at the climate summit: The High-Level Champions and the Marrakech Partnership have released a report called '2030 Climate Solutions: An Implementation Roadmap.' It contains a set of solutions on measures that must be scaled up and replicated in order to halve global emissions, address adaptation gaps and increase climate resilience. Next year’s COP – COP29 – is to take place in Baku, Azerbaijan. Article COP28 draft agreement drops phaseout of fossil fuels (Financial Times) Elements of new Cop28 text are ‘fully unacceptable’, say EU climate chiefs (The Guardian) ‘We can’t accept this’ – Eamon Ryan says proposed Cop28 agreement needs to be ‘radically’ improved (Irish Independent) Podcast In the second of two special episodes from ICAEW, Insights In Focus shares news and views from COP28 in Dubai. guest host Mark Rowland is joined by Sarah Reay, ICEAW Climate Change Manager, ICAEW; Jessica Fries, Executive Chair, A4S; and Mardi McBrien, Chief of Strategic Affairs and Capacity Building, IFRS Foundation.  Counter The Climate Action Commitment Counter, published today by COP organisers, has provided a breakdown of financial pledges and contributions so far: Loss and Damage:$726 million Green Climate Fund:$3.5 billion (up to $12.8 billion) Adaptation Fund:$134 million Least Developed Countries Fund:$129.3 million Special Climate Change Fund (SCCF):$31 million Renewable Energy:$5 billion Cooling:$57 million Clean Cooking:$30 million Technology:$568 million Methane:$1.2 billion Climate Finance:$30 billion from UAE, $200 million in Special Drawing Rights, and $31.6 billion from Multilateral Development Banks (MDBs) Food:$3.1 billion Nature:$2.5 billion Health:$2.9 billion Water:$150 million Gender:$2.8 million Relief, Recovery and Peace:$1.2 billion Local Climate Action:$467 million   Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre. 

  Saturday at COP28 focused on nature, land use, and oceans, while Sunday was the first-ever COP day dedicated entirely to food, agriculture and water. Despite food generating one-third of global greenhouse gas emissions, agriculture has attracted very little climate finance. However, since the beginning of this COP, over $3 billion in climate finance has been pledged for food and agriculture. The Dubai climate summit in which “when food came of age as a central means of responding to the climate emergency”, according to Edward Davey, partnerships director at the Food and Land Use Coalition, also saw another first: the publication by the UN Food & Agriculture Organisation (FAO) of a global food systems’ roadmap. The roadmap aims to ensure the world keeps to with 1.5 degrees of temperature rise and transform the world’s agrifood system from a ‘net emitter’ to a ‘carbon sink’ by 2050. The FOA identified 10 priority areas – such as livestock, soil and water, crops, diets and fisheries – where the roadmap can help push the world closer to achieving ‘Zero Hunger’, the second of the 17 Sustainable Development Goals (SDGs). COP28 in numbers $3.8 trillion: value of crops and livestock production lost due to disasters, including floods and droughts, over the past three decades. $3+ billion: amount of climate finance pledged for food and agriculture since the start of COP28. 134: number of countries to have signed Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action, committing to integrate food into their climate plans by 2025. 70: the percentage of the world’s land that the above countries cover. $200 million: amount of investment pledged for programmes to low-methane animals and develop less potent feed additives (Bezos Earth Fund is also investing in wearable sensors that measure how much cows emit). $200 million: amount pledged by the Gates foundation and the United Arab Emirates to help smallholders in sub-Saharan Africa and South Asia adapt to climate change. 47: the percentage by which global greenhouse gas emissions from livestock will grow by 2050 from 2015 levels if no action is taken. 18: countries which announced that they would align their national climate and biodiversity planning frameworks under the COP28 Joint Statement on Climate, Nature and People. Articles The world’s top five meat companies’ emissions are estimated to be significantly larger than those of the oil firms Shell and BP. The dairy industry’s 3.4 per cent contribution to global human-induced emissions is a higher share than aviation (The Guardian) Ireland is committed to continuing sustainable food production and becoming climate neutral as fast as possible, says Minister for Agriculture Charlie McConalogue (Irish Times)   Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre.   

  After a rest day on Thursday, COP28 resumed on Friday 8 December for Week 2 of the global climate summit in Dubai. The second week is the critical week for COPs as it is when government officials negotiate the text of the final agreement. All eyes will be on what the agreement will say about fossil fuels, whether ‘phased out’ or ‘phased down’. Today at COP28 was dedicated to “youth, children, education and skills”. Negotiations will continue over the weekend, focussing on nature on Saturday and on food, agriculture and water on Sunday.   COP28 in numbers $57 billion: The number of financial pledges made so far at this COP. 50: the percentage by which Dubai plans to cut carbon emissions by the end of this decade, compared with 2018 levels. 118: the number of governments that have now pledged to triple the world’s renewable energy capacity by 2030 as part of the Global Pledge on Renewables and Energy Efficiency (China and India did not join). 9: the number of new countries now signed up to the Powering Past Coal Alliance, the group of nations pledging to phase out “unabated” coal power first founded at COP26 in Glasgow. 4: the number of new countries – including Spain, Kenya, Samoa and Columbia – to have joined the Beyond Oil and Gas Alliance group pledging to phase out all fossil fuels. Definitions Unabated  - “doing nothing to remove carbon dioxide and other greenhouse gases from oil, natural gas and coal emissions.” (New York Times). This word will appear with increasing frequency during the negotiations this week, with some commentators saying it could ‘determine the world's future’. Youth-washing  - Similar to greenwashing, this term describes the practice of showboating young voices but not paying attention to them. Watch or listen The Zero podcast from Bloomberg with Akshat Rathi who interviewed Al Gore on how to break the stranglehold petrostates have over COP. Gore also explains why big emitters can no longer hide. Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre.   

  In this week’s Sustainability/ESG bulletin, read our ongoing coverage of COP28. Also covered is information for those considering seeking authorisation as sustainability assurance providers (SAPs), new guidance for retailers on energy and sustainability supports, Ireland’s progress against Sustainable Development indicators, gender balance in Irish business, natural capital accounting updates, and renewable energy statistics and the need for tree planting in Northern Ireland. A thought leadership article on the role of accountants in sustainable agriculture is also featured, and we have the usual articles, podcasts and events. COP28 - the global climate summit The United Nations’ annual climate summit, COP28 continues in Dubai. Chartered Accountants Ireland has compiled useful resources about the summit on our COP28 page, including our daily updates and weekly roundups. Sustainability Assurance Providers – Update from Chartered Accountants Ireland Chartered Accountants Ireland Professional Standards has created a webpage providing information for those considering seeking authorisation as sustainability assurance providers (SAPs). The page contains links to FAQs on the topic. This content will be kept under review and updated when appropriate. New general guidance for retailers on energy and sustainability The Department of Enterprise, Trade and Employment (DETE) has published general guidance for retailers about government schemes and supports in relation to energy and sustainability, including an extension to the Accelerated Capital Allowances Regime for Energy Efficient Equipment to 2025. This is a tax incentive to encourage investment in energy efficiency technology. You can find more on climate action and energy supports for business on the DETE website. 2022 Regional EU Sustainable Development Indicators published for Ireland Ireland’s Central Statistics Office (CSO) has published Regional EU Sustainable Development Indicators for Ireland 2022. The report, which assesses Ireland’s progress towards social, economic, and environmental goals, found that, among other things, Ireland’s average income inequality was less than that of the EU in 2022, and that renewable energy accounted for 12.5 percent of final consumption in Ireland in 2021, rising from 8.5 percent in 2014.   The Economic Cost of Congestion in the Greater Dublin Area 2022-2040 Analysis has been published by the Department of Transport that considers the economic cost of congestion within the Greater Dublin Area (GDA) from 2022 to 2040. It indicates that congestion will increase significantly over the coming decades due to population and economic growth, and that additional levels of ‘modal shift’ to sustainable transport modes or reduction in transport demand would be required to reduce the increase in the cost of congestion. Gender balance in Irish business The sixth annual report of the Balance for Better Business Review Group published this week, and reveals that Irish businesses have made significant progress in achieving gender balance at board level over the past year. However, it also found that Irish businesses have further work ahead to achieve gender balance in senior leadership roles. Employment for people with disabilities Minister for Social Protection, Heather Humphreys TD, has announced funding to support and improve employment opportunities for disabled people. The WorkAbility: Inclusive Pathways to Employment Programme is a new employment-focused programme which aims to support disabled people to enter education and employment. The programme will begin in January 2024, with grants available of up to €200,000 per year. National Centre for EV skills announced A national centre for electric vehicle skills is to be developed at Longford-Westmeath ETB to train people to repair and maintain electric cars, electric bikes, scooters, trucks, buses, vans and heavy goods vehicles. The centre, which was announced by Minister for Further and Higher Education, Research, Innovation and Science Simon Harris, T.D., is to be a critical component of the State’s response to the green transition. Separately, the European Commission has proposed to the Council a specific one-off extension – until 31 December 2026 – of the current rules of origin for electric vehicles and batteries under the EU-UK Trade and Cooperation Agreement (TCA). The rules were designed in 2020 to incentivise investment in the EU's battery manufacturing capacity. To reaffirm political commitment and strategic support to further foster battery production in the EU, the Commission has further announced it will provide funding of up to €3 billion, for three years, to the most sustainable European battery manufacturers.  Natural capital accounting update The Environmental Protection Agency (EPA) has published a summary report on the INCASE project, an EPA-funded research project running from March 2019-2023 set up to develop natural capital accounts for different sites in Ireland. INCASE, which stands for the Irish Natural Capital Accounting for Sustainable Environments, prepared accounts for four catchments across Ireland using the UN System of Environmental-Economic Accounting-Ecosystem Accounting (SEEA-EA). The accounts mapped the stocks and flows of ecosystem and geosystem services, highlighting challenges, knowledge and data gaps, and recommends a framework to operationalise Natural Capital Accounting in Ireland.  Renewable electricity consumption -  Northern Ireland   A total of 47.4 percent of total electricity consumed between October 2022 and September 2023 was generated from renewable sources located in Northern Ireland. The ‘Electricity Consumption and Renewable Generation in Northern Ireland: Year ending September 2023’, published this week, details the percentage of electricity consumption in Northern Ireland generated from renewable sources and includes information on the type of renewable generation. Of all renewable electricity generated within Northern Ireland over the 12-month period October 2022 to September 2023, 83.8 percent was generated from wind. Separately, a study has found that more than 200 neighbourhoods across Northern Ireland could be missing out on the health benefits of trees. The Tree Equity Score, applied to the UK for the first time, has found that more than 178,000 trees were needed for all areas of Northern Ireland. Trees play a key part in addressing the ‘urban heat island effect’ and reduce extreme heat, filter pollution and prevent other environmental hazards, such as flooding. Economic losses of €52.3 billion in 2022 caused by weather- and climate-related extremes The annual update of the European Environmental Agency (EEA) indicator on economic losses shows that weather- and climate-related extremes caused €59.4 billion of economic losses of assets in 2021 and €52.3 billion in 2022. The indicator tracks damage to assets from weather- and climate-related extremes in Europe, and tracks losses between 1980 and 2022 (amounting to €650 billion across EU Member States). Statistical analysis revealed that economic losses are more likely to increase over time, as severe weather- and climate-related extreme events are expected to intensify further. A dashboard with more detailed insights into the information is available on Climate-ADAPT. European Commission on the energy solidarity contribution  (From our colleagues in the Tax Team) In a new report, the European Commission analyses the solidarity contribution applied on the unexpected surplus profits for the fossil fuel industry which arose during the 2022 energy crisis. The report sheds light on market developments in the fossil fuels sector covered by this emergency intervention since the measure was adopted in autumn 2022.  New EU rules to make sustainable products the norm The EU Parliament and Council have reached provisional agreement on revising the EU’s ecodesign framework for sustainable products. This framework aims to improve various aspects of products throughout their lifecycle to make them more durable and reliable, easier to reuse, upgrade, repair and recycle, and use less resources, energy and water.  Specific product requirements will be outlined by the Commission through secondary legislation. Following the completion of work at technical level, Parliament and Council need to formally approve the agreement before it can come into force. Separately, the EU launched the Global Renewables and Energy Efficiency Pledge alongside 118 other countries at the World Climate Action Summit at COP28 in Dubai. The initiative sets global targets to triple the installed capacity of renewable energy and to double the rate of global energy efficiency improvements by 2030. Delivering these targets will support the transition to a decarbonised energy system and help to phase out unabated fossil fuels. To support the delivery of the Global Pledge, the EU plans to invest €2.3 billion from the EU budget to support the energy transition. Accounting bodies call on profession to building capacity International Federation of Accountants (IFAC) is calling on the accountancy profession to help build capacity and advance on education. At this year’s COP, the IFRS Foundation’s new Knowledge Hub was launched to help fill the “knowledge gaps” in the short-, medium- and long-term to achieve the goal of a harmonized system for high-quality sustainability-related financial information, a global baseline established via the ISSB Standards. Newsletters (From our friends in Dublin Chambers) The EU Accessibility Act is coming into effect in June, 2025 with implications for all businesses. A new issue of the Profit with Purpose Magazine has published, addressing offsetting, AI, regulation, climate anxiety and more.  Technical Round-Up (From our colleagues in Professional Accounting) The Financial Conduct Authority (FCA) has confirmed a substantial package of measures to improve the trust and transparency of sustainable investment products and minimise greenwashing. With an estimated $18.4 trillion of ESG-orientated assets now being managed globally, the FCA is putting in place new Sustainability Disclosure Requirements and an investment labels regime after detailed engagement with a range of stakeholders, including industry, other regulators and consumer groups. >Articles The drive to educate markets on climate reporting (ICAEW) ESB and SSE given green light to progress offshore wind projects (Business Post) Sustainable agriculture – the role of the accountant (Chartered Accountants Ireland) A recap of the past week at COP28 (Bloomberg Green) – *recap appears when you scroll down to ICMYI* Thought Leadership: Sustainable agriculture – the role of the accountant Chartered Accountants Ireland’s Thought Leadership team has published an article by Dr Michael Hayden, FCA, and Assistant Professor of Accounting at Maynooth University, on how the accountancy profession can contribute to assisting farmers and food producers meet sustainability targets. Sustainable agriculture – the role of the accountant is relevant not only for food and agricultural businesses but are equally for how the accounting profession could rise to the challenge of assisting businesses in other sectors of the economy meet the increasing demand to strive for improved sustainability.  Podcast COP28: what does transition planning mean for accountants? (ICAEW) Upcoming Events   Accounting for Sustainability (A4S) at COP28 A4S, which aims to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy, will bring the voice of the finance and accounting community to COP28 through a series of in-person and virtual events. Find out more here. Accountancy Europe, ESRS Webinar Co-hosted by Accountancy Europe and EFRAG, this event aims to assist stakeholders in the implementation of ESRS under CSRD. Webinar: 12 December, 10:00 - 12:00 (Brussels time) Edie: post-COP28 debrief webinar This webinar  will deliver a thought-provoking panel discussion featuring a variety of corporate climate leaders and NGOs, to summarise what happened at COP, to assess what the final agreement could mean for businesses and what it means moving forward. Webinar: 13 December, 11:00 – 12:00 Sustainable Energy Authority of Ireland (SEAI): Webinar to launch the Energy in Ireland report Free webinar with a panel of speakers presenting on the report’s key findings with a Q&A session afterwards. Webinar: 13 December, 11:30 – 13:00 UN Global Compact Network UK Collecting Scope 3 Data Webinar Series 2024 The UN Global Compact Network UK are hosting an interactive four-part webinar series in 2024 to support businesses to efficiently collect Scope 3 emissions data from across their value chain. This series will explore how companies can collect Scope 3 data using a variety of tools, surveys, and software and will feature case studies and insight from businesses on good practice in this area. Collecting Scope 3 Data: Supplier Engagement: 1 February, 10:00-11:30 GMT Collecting Scope 3 Data: Upstream Emissions, 8 February, 10:00-11:30 GMT Collecting Scope 3 Data: Downstream Emissions, 15 February, 10:00-11:30 GMT Collecting Scope 3 Data: Employee Engagement, 22 February, 10:00-11:30 GMT Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 24 January 2023  In person: Time and location tbc If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre. 

"We need COP to deliver a bullet train to speed up climate action" Simon Stiell, UN Climate Change Executive Secretary COP28. As COP28 prepares for a rest day on Thursday in advance of the week-long negotiations that will get underway on Friday in Dubai on the language of the final COP agreement, focus shifted onto a new arrival in the UAE. While unlikely to attend the summit, President Vladimir Putin arrived in Abu Dhabi on his first trip to the Middle East since the invasion of Ukraine, reportedly to garner support in the from two major oil producers. Of potentially greater concern to many delegates at this COP, however, is the global stocktake. At this COP governments will take a decision on the stocktake, which is the process for countries and stakeholders to see where they’re collectively making progress towards meeting the goals of the Paris Climate Change Agreement – and where they’re not. “We can only overcome the climate crisis by ditching business-as-usual” Stiell stated.  “All governments must give their negotiators clear marching orders: we need highest ambition, not point-scoring or lowest common denominator politics.” Pointing out that only 50 countries have National Adaptation Plans, Stiell went on to describe the starting text of the Global Stocktake as just a “grab bag of wish lists and heavy on posturing”, urging government to deliver more and go further. “The tools are all there on the table, the technologies and solutions exist. It’s time for governments and negotiators to pick them up and put them to work.” The Global Stocktake – FAQ What is the global stocktake? The Paris Agreement 2015 committed countries  to take serious action on the climate crisis. Parties to the Agreement, some 196 countries, signed up to keep global warming to 1.5°C above pre-industrial levels. The global stocktake was set up to monitor progress against this target. Essentially, it is a global-scale audit of the world’s progress towards the goals of the Paris Agreement. When does it take place? Under the Paris Agreement, countries are to check their progress in 2023, and every five years after that. The first-ever Stocktake is set to conclude at this COP in Dubai. Three events have already taken place at this COP to discuss the stocktake. What do we know so far? A technical report from the stocktake published in September 2023. It shows that we are off track to limit global warming to 1.5°. Our situation is urgent, and countries need to take action to mitigate and adapt and implement. What is meant by ‘mitigate’, ‘ adapt’ and ‘implement’? Mitigate: we need to drastically reduce greenhouse gas emissions (e.g. by replacing fossil fuels with renewable energy sources). Adapt: we need to change our economics and societies to cope with the effects of climate change. These include heatwaves, wildfires, rising sea levels, air pollution, increased sickness, migration and biodiversity loss. Implement: we need to mobilize accessible and affordable climate finance at scale, essentially making the international financial system - including its governance - fit-for-purpose. Why is the stocktake important? The stocktake itself is not as important the global response to it. However, the manner in which countries respond to the results of the stocktake is what will make the difference in the form of higher ambition and accelerated action. Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre.