The annual United Nations conference on climate change, known as the Conference of the Parties (COP), has just ended in the United Arab Emirates (USA).

For the first time, the text of the adopted decision calls for the reduction of fossil fuel consumption: the promotion of “the transition to the abandonment of fossil fuels in energy systems, in a fair, orderly and just way”.

It is astonishing that this expression occurred at a COP conference whose seat was a member country of the Organization of the Petroleum Exporting Countries (OPEC) and at a conference chaired by the director of an American oil company.

Efficient consumption

However, the term is embedded in an article full of options and is not binding (it uses the term “could” instead of “should”). It is considered a somewhat pyrrhic achievement, given that 2023 was the warmest year on record, surpassing 2 degrees Celsius on some days above pre-industrial levels.

Another, also somewhat pyrrhic, achievement of COP 28 was the establishment of a new Loss and Damage Fund, whose secretariat will initially be housed at the World Bank. Pirov, because the announced contributions to the aforementioned fund amounted to only 700 million dollars, or 0.2% of the losses and damages suffered by developing countries every year. Contributions to the Adaptation Fund of $188 million and $12.833 million to the Green Climate Fund (GCF) were also announced. In the latter case, the United States has announced a contribution of $3 billion, but it remains to be seen whether the Biden administration will achieve congressional approval of the funds (the previous commitment of $3 billion in 2014 has not been fully met, since the previous president Trump backed out from contributions).

COP28 and the challenges of Latin America

The OECD said it estimated that developed countries would finally meet their previous commitment to mobilize $100 billion a year in climate finance by 2022, although the more precise figures it gave for 2021 totaled $89.6 billion. At COP 28, a new climate change financing target from 2025 was also discussed, although no consensus was reached on the figure. Just to keep adjusting for inflation, the new target would need to be at least $120 billion a year.

The COP called for a tripling of renewable energy, a doubling of energy efficiency, a reduction in methane emissions and an end to fossil fuel subsidies (although, unnecessarily, it added the qualifier “inefficient subsidies”).

What does this mean for Ecuador? The transition to a post-oil economy must be accelerated; priority should be invested in renewable energy sources (solar energy and wind energy are currently the cheapest forms of new production); Greater energy efficiency in production sectors must be promoted; The burning of methane gas in flares at oil wells and refineries must be eliminated immediately. Subsidies for fossil fuels (including subsidies for thermoelectric energy) must be completely abolished. The electrification of the rolling stock and the promotion of electric public transport must be promoted (the opening of the Quito subway after a four-year delay was a big step forward).

The new government of Ecuador squandered the window that the COP represented, as commented by Thalía Flores. In addition to highlighting the result of the referendum that will leave the oil in the Yasuní Block 43 onshore (with a reduction in revenue of $1.2 billion per year), the previous Government managed to expand the marine reserve of the Galapagos Islands and carried out the largest debt swap in nature, resulting in savings of $1.1 billion in foreign debt, and established the Blue Bond, which will generate $450 million in revenue over the next 20 years for conservation on the islands and their marine reserves. (OR)