Governments representing over half of global GDP set out 12-month action plan to help make clean technologies cheaper and more accessible everywhere.
BY CLIMATE CHAMPIONS | NOVEMBER 11, 2022
Countries today launch a package of 25 new collaborative actions to be delivered by COP28 to speed up the decarbonisation under five key breakthroughs of power, road transport, steel, hydrogen and agriculture
Historic support by three COP Presidencies for COP26, COP27 and COP28 drives forward implementation from Glasgow to Sharm El Sheik and into the United Arab Emirates-hosted COP and sends a signal of intent to the private sector
Actions target sectors accounting for more than 50% of global greenhouse gas emissions and are also designed to reduce energy costs and enhance food security, with buildings and cement sectors to be added to the Breakthrough Agenda next year
Today, under the Breakthrough Agenda countries representing more than 50% of global GDP set out sector-specific ‘Priority Actions’ to decarbonise power, transport and steel, scale up low-emission hydrogen production and accelerate the shift to sustainable agriculture by COP28. These measures are designed to cut energy costs, rapidly reduce emissions and boost food security for billions of people worldwide.
The actions under each breakthrough will be delivered through coalitions of committed countries – from the G7, European Commission, India, Egypt, Morocco and others, supported by leading international organizations and initiatives, and spearheaded by a core group of leading governments. These efforts will be reinforced with private finance and leading industry initiatives and further countries are encouraged to join.
The Priority Actions include agreements to:
Develop common definitions for low-emission and near-zero emission steel, hydrogen and sustainable batteries to help direct billions of pounds in investment, procurement and trade to ensure credibility and transparency
Ramp up the deployment of essential infrastructure projects including at least 50 large scale net-zero emission industrial plants, at least 100 hydrogen valleys and a package of major cross-border power grid infrastructure projects
Set a common target date to phase out polluting cars and vehicles, consistent with the Paris Agreement. Significant backing for the dates of 2040 globally and 2035 in leading markets will be announced by countries, businesses and cities on Solutions Day
Use billions of pounds of private and public procurement and infrastructure spend to stimulate global demand for green industrial goods
Systematically strengthen financial and technological assistance to developing countries and emerging markets to support their transitions backed up by a range of new financial measures, including the world’s first major dedicated industry transition programme under the Climate Investment Funds
Drive investment in agriculture research, development & demonstration (RD&D) to generate solutions to address the challenges of food insecurity, climate change and environmental degradation
Against the backdrop of rising food prices, 13 countries have now endorsed the Agriculture Breakthrough led by the UK and Egypt, including recent new joiners Australia, Cambodia, Germany and Ireland, which aims to make climate-resilient, sustainable agriculture the most widely adopted option by 2030. While France and Morocco have signaled their intention to launch a new Buildings Breakthrough; Canada have signaled their intention to launch a new Cement Breakthrough in 2023 and Cambodia became the latest country to endorse the Breakthrough Agenda as a whole, bringing the total of countries endorsing the agenda to 47.
Today’s Breakthrough Agenda announcements build on the leader-level commitment at COP26 by 45 countries to work together to make clean technologies and sustainable solutions the most affordable, accessible and attractive option in each of the emissions-intensive sectors of the global economy, before the end of this decade.
“Since we launched the Breakthrough Agenda at COP26, the world has changed and we are facing a perilous geopolitical and economic situation. That only makes international collaboration more urgent,” said Alok Sharma, COP26 President. “That’s why I am pleased that countries representing over 50% of global GDP have now agreed to a set of priority actions for implementation. Now, it is vital for all to deliver and demonstrate real progress as we move forward. This is integral to achieving the 2030 goal of making clean technology affordable, available and accessible to all.”
Initiated by the UK COP Presidency in partnership with the Race to Zero and the UN Climate Change High Level Champions, this major international government-led programme will be overseen by Mission Innovation and Clean Energy Ministerial from COP27 through to COP28.
“The Breakthrough Agenda provides a practical platform for partnerships between countries and across industries that will be essential to rapidly scale commercially viable solutions for climate progress,” Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Special Envoy for Climate Change for the UAE said. “The UAE is keen to continue its contribution to the Breakthrough Agenda, as a pioneer in renewable energy, first-mover on hydrogen, as well as a champion of sustainable, decarbonized agriculture. Our support as founding members of AIM for Climate, the recent 100 GW Partnership to Accelerate Clean Energy (PACE) with the United States, and the 10 GW wind power agreement we signed with Egypt at COP27 are recent examples of that commitment. And as the host country of COP28, the Emirates Climate Conference, we are determined to bridge initiatives and outcomes from Glasgow and Sharm El Sheikh to the UAE.”
“The Breakthrough Agenda is galvanizing action in this decisive decade across the world’s most important economic sectors to decarbonize. Government cooperation, in collaboration with the private sector through the First Movers Coalition, can scale critical technologies and create new markets. I congratulate our close partners the United Kingdom on the continued success of the Breakthrough Agenda,” said United States Special Presidential Envoy for Climate John Kerry.
These priority actions are being supported and accelerated by a raft of developments across industry and government-led initiatives, with accompanying key announcements seen today and throughout COP27. These include:
The First Movers Coalition, which launched at COP26 to help drive industrial decarbonisation, has expanded to 10 new corporate members including PepsiCo, General Motors, Rio Tinto and ETEX, to reach 65 in total with a combined market cap of about $8 trillion. Together they commit $12bn to commercialize zero-carbon technology to decarbonize the heavy industry and long-distance transport sectors, responsible for 30% of global emissions.
The First Movers Coalition also launched its cement and concrete sector, with newly announced companies committing to purchase at least 10% near-zero carbon cement and concrete per year by 2030.
A package of new financial announcements for industrial transitions: the launch of the Climate Investment Funds’ (CIFs) new Industry Transition Programme – the world’s first large scale dedicated finance programme for developing country industry transitions; a $410m green hydrogen investment in Egypt led by the EBRD; and World Bank plans to develop a $1.6bn green hydrogen global programme.
This comes on top of recently confirmed plans to launch by COP28 the ‘CIFs Capital Market Mechanism’ – a new initiative instrument that modeling has shown will generate billions of dollars a year in extra finance into sector transitions over the next 10 years.
The Mission Possible Partnership (MPP), an alliance of leading climate organizations, released 2030 Milestones for seven hard-to-abate industrial and transport sectors, following publication of transition strategies endorsed by more than 200 industrial companies.
MPP will also provide advisory and technical support for accelerated decarbonisation projects in two industrial hubs in Houston and Los Angeles, United States, to scale first projects spanning multiple hard-to-abate industrial and transport sectors and inform the next wave of green industrial clusters.
The Africa Net-Zero Concrete Group has launched and the first African Net-Zero Concrete National Roadmap has been set by Egypt.
Meanwhile, a joint statement will be launched between the largest green hydrogen developers and shipping actors mutually committing to produce and use green hydrogen-derived fuels by 2030 and beyond.
These developments build on significant progress throughout the year, with investments in wind and solar projects expected to outpace oil and gas for the first time ever, while the pipeline of next generation low-emission facilities accelerated, with over 100 low-emission cement projects in planning and millions of tonnes of near-zero emission steel production plants now approaching financial investment decision. Over 50 countries are developing hydrogen strategies, collectively targeting 74GW of capacity, while more than $4bn has been allocated to agriculture innovation for climate, by the Agriculture Innovation Mission for Climate.
Other key developments seen throughout the year include:
23 national governments and the European Commission, collaborating under Mission Innovation, announced investment in 221 demonstration projects this year in clean energy innovation across key sectors including hydrogen and power.
$94bn has been committed by governments – including 15 Clean Energy Ministerial members and 14 Mission Innovation members – towards demonstrating clean energy technologies by 2026 in response to US President Joe Biden’s $90bn Challenge.
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Country specific announcements for Breakthrough Agenda:
Cambodia and Austria have endorsed the Breakthrough Agenda
Germany has agreed to co-lead the Steel Breakthrough with the UK.
The UK and Morocco have agreed to co-lead the Power Breakthrough.
The UK, US and EU have agreed to co-lead the Hydrogen Breakthrough.
The US, India and UK have agreed to co-leads the Road Transport Breakthrough.
Egypt and UK have agreed to co-lead the Agriculture Breakthrough
Australia, Cambodia, Germany and Ireland have endorsed the Agriculture Breakthrough bringing the total number of countries that have endorsed the Agriculture Breakthrough to 13.
Japan has formally joined the Clean Energy Ministerial Industrial Deep Decarbonisation Initiative as a new member, alongside the UK, Germany, India, US, Canada, Japan, Saudi Arabia and the United Arab Emirates.
Countries signed up to at least one sector’s set of Priority Actions
Australia, Austria, Azerbaijan, European Commission, Canada, Finland, France, Germany, India, Italy, Ireland, Japan, Kenya, Latvia, Lithuania, Morocco, Netherlands, New Zealand, Nigeria, Norway, Panama, Sweden, Türkiye, United Arab Emirates, United Kingdom, United States of America.
47 Breakthrough Agenda signatory countries Australia, Austria, Azerbaijan, Belgium, Cabo Verde, Cambodia, Canada, Chile, China, Denmark, Egypt, European Commission, Finland, France, Germany, Guinea Bissau, Holy See, India, Ireland, Israel, Italy, Japan, Kenya, Latvia, Lithuania, Luxembourg, Malta, Mauritania, Morocco, Namibia, Netherlands, New Zealand, Nigeria, North Macedonia, Norway, Panama, Portugal, Republic of Korea, Senegal, Serbia, Slovakia, Spain, Sweden, Türkiye, United Arab Emirates, United Kingdom, United States of America.
Climate Investment Funds (CIF) Industry Transition programme
The CIF Industry Transition programme aims to accelerate decarbonisation within the industrial sector – which accounts for around 28% of global emissions.
The new programme will focus on manufacturing sectors such as iron, steel, cement, glass; chemicals and petrochemicals; pulp and paper; and mining.
Concessional donor funding will leverage additional public and private finance to promote sustainable business practices (at facility, corporate and national levels) and support the scale up of technical solutions (such as heat recovery and green hydrogen).
An expression of interest process for ODA-eligible countries will be launched after COP27.
Climate Investment Funds (CIF) Capital Market Mechanism (CCMM)
CCMM will play an important role in the $100bn roadmap and is expected to raise between $5-7.5bn a year over the next 10 years that can be used to support new projects, by bringing forward reflows that are due as late as 2060.
After an in-depth review, the World Bank finance team has determined that the CCMM has the potential to increase the volume of concessional funding available to mobilize co-financing from participating MDBs in addition to crowding in the private sector, bilateral aid, and domestic resources that work together to provide an essential stream of financial support for developing countries in the fight against climate change.
The World Bank and relevant stakeholders continue to work on the CCMM design, efficiency and effectiveness, with the goal of officially launching in 2023. It is expected that the World Bank would take on the role of Treasury Manager to the CCMM.
Clean Energy Innovation Facility (CEIF)
The Facility aims to accelerate the commercialisation of innovative clean energy technologies in developing countries and the expansion is a key part of the UK government’s £1bn Ayrton Fund commitment for clean energy RD&D in countries eligible to receive Official Development Assistance (ODA).
The Prime Minister’s COP27 announcement of a further £65.5 million for the Facility focuses on accelerating innovative clean energy technologies for clean hydrogen, critical minerals (such as reducing critical minerals use in energy storage technologies) and cross-cutting areas essential to clean energy transitions (clean transport, energy efficiency, industrial decarbonisation, sustainable cooling, energy storage and smart energy).
The Decarbonization Day
Since the adoption of the Paris Agreement and all the way to Glasgow in 2021, several energy intensive sectors and companies have come forward with plans and policies and actions aiming to reduce their carbon footprints and to gradually move towards decarbonization.
Technologies are emerging as potential solutions to reduce carbon in the atmosphere. The day would provide an opportunity to discuss such approaches and policies, and to showcase technologies with an aim to encourage and facilitate the much-needed transition and paradigm shift towards a low carbon economy.
Credits: UNFCCC and COP27
