Opinion: How COP 28 pledges pave way for private sector-led clean energy

If the big news of 2023 was all about achieving a global commitment to transition away from fossil fuels, then 2024 must be the year that the public and private sectors step up to put the world within reach of our climate goals. The United Nations climate conference, COP 28, led to more than $85 billion in commitments to climate financing, which will be a game changer if we focus on attracting and scaling up private sector investments in the developing world. These funds should go a long way to enticing even more private sector investments that not only open opportunities for reasonable returns but strengthen local economies and increase food security and resilience — particularly in the global south. We owe a debt to the global south. It's our fossil fuel pollution that has caused so many of their challenges. It’s time to pay that debt in a way that doesn't just toss a couple of solar panels up and call it a day. It’s time to provide significant resources that will build sustainable economic growth consistent with the kind of future these communities and countries decide on. If we do that, then we have a good chance of winning the battle against climate change. COP 28 was indeed a breakthrough. We saw $12.8 billion pledged to the Green Climate Fund which can help unlock more adaptation and mitigation funding in low- and middle-income countries. There’s nearly $800 million to address loss and damage from climate impacts. The United Arab Emirates announced a $30 billion climate-focused investment fund, ALTÉRRA, with plans to invest in the global south. In addition, the UAE announced an initiative to strengthen local food ecosystems through private investment. While countries around the world work to find the best model for them, the U.S. has found that tax incentives for businesses — that invest in clean energy, manufacturing, and industries that can help reduce the cost of those goods and services — as well as consumer rebates and other strategies are significant enticements to generate private sector engagement. The passage and implementation of the Inflation Reduction Act, or IRA, created an unprecedented opportunity for the United States to come to the negotiating table at COP 28 with a proven commitment to climate action. It also showed the world that investing in clean energy can make our lives better and our economies stronger while reducing our reliance on fossil fuels. Billions of dollars have already been invested and are heading to states across the United States as people begin to see what the clean energy future can deliver, and the economic stability it can provide. Manufacturing has been reenergized, leading to hundreds of thousands of new clean energy jobs. In a short time, the IRA has proven that climate change need not require sacrifice. Actions to tackle our climate crisis can be — and now are — the biggest opportunity we have to improve our health, keep our families safe, create jobs, and build industries that spur economic development and build more sustainable communities. The clean energy transition is on steroids in the U.S. because we used public sector dollars to attract private sector investment. And everyone is now benefiting. The IRA is no longer an experiment. It demonstrates the value of the public and private sector working together, which is exactly what we hope will happen in the global south through the significant amount of funds pledged at COP 28. For example, a partnership announced at COP 28 brings Pegasus Capital Advisors — using funds from the Green Climate Fund — together with Curvalux, a leader in fixed wireless access technology, and the United Cities and Local Governments of Africa, or UCLG Africa, to drive transformative change in emerging economies. Through this effort, public and private investments will be leveraged to deliver solar-powered broadband technology to millions of people on the African continent — and open up opportunities for small business owners to hire, manage, maintain, and grow their own local broadband access business. Pegasus will provide the financing, Curvalux will bring the equipment and technical expertise, while UCLG Africa will share their local expertise and network of more than 2,000 townships. By connecting public sector experts like UCLG Africa and financial resources from Pegasus, this partnership was able to attract a private company like Curvalux to help local governments across Africa build sustainable economies, support the U.N. Sustainable Development Goals, and advance the objectives of the Paris Agreement on climate change. What makes this kind of progress possible? The simple and undeniable fact is that the solutions to climate change are already available. We don't have to reinvent the wheel; we just need to get the private sector to work with governments and communities to identify and invest in the many opportunities we have today. That is how we give people a sense of hope so they can begin to see themselves in our clean energy future. With more private sector investment and focus thanks to COP 28 and with partnerships at the grassroots roots level, we can accelerate, replicate, and scale clean energy and climate solutions that meet our climate goals and deliver a better future for people across the world — including the global south.