TSKB Shares the Important Outcomes of COP28 from a Development Banking Perspective
TSKB exhibited extensive representation at the 28th United Nations Climate Change Conference (COP 28) held in Dubai this year, featuring the participation of the Bank's CEO Murat Bilgiç and Sustainability Leader Executive Vice President Meral Murathan, as well as managers from various disciplines, technical experts and subsidiary representatives. TSKB CEO Murat Bilgiç, stating that they participated in eight different sessions with national and international representatives this year, expressed: "The common message of COP 28 was the need to accelerate action on the journey to net zero in line with the Paris Agreement. Unfortunately, the economic and social risks of global warming are much extreme in developing countries. A just transition plan needs to be a common agenda for the whole world, especially developed countries. Multinational development finance institutions will increasingly continue to play a critical role in mobilizing sustainable sources of finance."
Making significant contributions to the country’s economy and the green transformation of the real sector in the light of its sustainable and inclusive banking vision, TSKB was represented in the 28th United Nations Climate Change Conference (COP28) chaired by the United Arab Emirates this year by TSKB CEO Murat Bilgiç and Sustainability Leader Executive Vice President Meral Murathan, as well as managers from various disciplines, technical experts and representatives of its subsidiary company Escarus.
Holding an important event at the Türkiye Pavilion where the strategies and cooperation opportunities of institutions were discussed within the scope of zero carbon targets and international regulations, TSKB brought together development finance institutions and the real sector with the participation of representatives from the World Bank, AFD, Eczacıbaşı Building Products and Fiba Renewable Energy. TSKB also participated as a panelist in seven different events at the Türkiye, World Bank, IDFC, Joint MDB and AIIB Pavilions.
TSKB CEO Murat Bilgiç shared his impressions about COP 28: "We participate in Climate Change Conferences every year with our relevant teams in a focused manner and closely follow all issues within our sphere of influence. This year, we had the opportunity to share our evaluations and best practices in eight different sessions with national and international representatives. Overall, the common message of COP 28 was the need to accelerate action on the journey to net zero in line with the Paris Agreement. Unfortunately, the economic and social risks of global warming are much higher in developing countries. A just transition plan needs to be a common agenda for the whole world, especially developed countries. Multinational development finance institutions will increasingly continue to play a critical role in mobilizing sustainable sources of finance."
Stating that both the conference and the Turkish delegation had a record number of participants this year, Bilgiç went on to add: "The wide participation and interest of all our relevant Ministries, public authorities, financial and real sector representatives in COP 28 indicates that climate actions will gain pace. As a bank that actively contributes to our country's 2053 net zero targets, we will closely monitor the sectoral decarbonization strategy in line with the 12th Development Plan. We will continue to actively support the green transformation of our country with our credit, investment banking and advisory lines from an integrated and holistic perspective together with all our stakeholders."
Highlights of COP 28 from TSKB's development banking perspective:
TSKB compiled the highlights of COP28, which took place with the participation of leaders as well as globally accepted competent experts and high-level representatives in the field of climate and sustainability, from a development banking perspective:
• Agreement has been reached for a "Loss and Damage Fund" to help the poorest and most vulnerable countries combat the impacts of the climate crisis. The United Arab Emirates and Germany have each pledged USD 100 million for the fund, which will initially be established under the umbrella of the World Bank Group. Later in the conference, it was announced that commitments to the Loss and Damage Fund had reached USD 725 million.
• For the first time, the term "fossil fuel" was included in the agreed consensus text of COP28. The text sets a goal of transitioning away from fossil-based energy systems in a just, systematic and equitable way, with accelerated action by 2030 to achieve net zero emissions by 2050. The text also calls for tripling global renewable energy capacity and doubling energy efficiency improvements by 2030, while accelerating significant reductions in non-carbon dioxide emissions, particularly methane. It also emphasizes phasing out inefficient fossil fuel subsidies as soon as possible.
• These include phasing out coal-fired power plants, accelerating renewable energy sources, and promoting zero- and low-emission technologies, including carbon capture, utilization and storage, and low-carbon hydrogen production, primarily in sectors where emissions are difficult to reduce.
• 39 countries have endorsed the "Declaration of Intent on Hydrogen". The aim is to recognize hydrogen certification programs and pave the way for cooperation in the use of hydrogen potential worldwide.
• More than 50 oil and gas companies have announced their commitment to the Oil & Gas Decarbonization Charter (OGDC). OGDC sets ambitious targets to stop routine flaring by 2030 and achieve net zero operations by 2050.
• The COP28 Presidency announced a USD 4.5 billion United Arab Emirates (UAE) financial initiative to unlock Africa's clean and renewable energy potential.
• The United Arab Emirates has announced the establishment of a USD 30 billion climate fund. The fund named “Alterra” will be the largest climate-focused private sector fund.
• Japan and France have announced that they will support the African Development Bank's (AfDB) and the Inter-American Development Bank's (IDB) plan to utilize IMF Special Drawing Rights (SDRs) for climate and development. The European Bank for Reconstruction and Development (EBRD) and the German Federal Ministry for Economic Affairs and Climate Action have signed an agreement. Accordingly, the resulting Climate Syndication Platform aims to mobilize private sector financing up to EUR 225 million. The EUR 30 million partial guarantee will be provided by the International Climate Initiative. Promoted as an "innovative guarantee instrument", the platform targets 7.5 leverage. The platform will cover Eastern European countries, the Balkans, Türkiye, Southern and Eastern Mediterranean countries and Central Asian countries.
• The Multilateral Development Banks Group-Joint MDB, a group of 10 development banks operating across various geographies, has published a perspective document for "Nature+" investments. The group has also issued a declaration at the end of COP28 reaffirming their commitment to socially inclusive, gender-sensitive and nature-positive climate and development action.
• At COP28, Health, Nature and Agriculture have stood out as concepts that gained strength. This year, "health" was covered by the theme day for the first time. 123 countries have signed the health declaration, drawing attention to the growing health impacts of the climate crisis.
• 134 countries have signed the Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action.
• The value of gender-sensitive policies, ensuring the integrity of all ecosystems and protecting biodiversity were emphasized.
• German Chancellor Olaf Scholz announced the establishment of the "Climate Club" to help decarbonize sectors such as steel, cement and aluminum in developing countries.
• More than 250 mayors and governors attended COP28 as part of the Local Climate Action Process. The COP28 Presidency mobilized USD 467 million to finance urban infrastructure and local climate action.
"Global Tipping Points 2023" report was published. Evaluating both positive and negative breakpoints, the report points out five tipping points that are currently at risk. Three more tipping points are considered at risk as we approach 1.5 degrees warming. The Greenland and West Antarctic ice sheets, warm water reefs, the North Atlantic sub-polar vortex and permafrost are currently at risk. Three more tipping points - boreal forests, mangroves and seagrass meadows - are considered at risk as we approach 1.5 degrees warming.
• The initiatives announced by the Turkish Climate Change Presidency are listed as follows:
- The Climate Club
- The Critical Raw Materials Club
- Emirates Declaration on Resilient Food Systems, Sustainable Agriculture and Climate Action
- The Friends of Glacier Group
- The Cement Breakthrough
- The Mangrove Alliance for Climate
- The Declaration on the Common Agenda for Education and Climate Change at COP28
- The Declaration on Climate and Health
- The Coalition for High Ambition Multilevel Partnerships for Climate Action (CHAMP)
