Wealthy oil nation lays groundwork for ‘eye-popping’ climate fund

illuminem summarizes for you the essential news of the day. Read the full piece on Politico or enjoy below

🗞️ Driving the news: The United Arab Emirates is considering creating a multibillion-dollar fund to spur clean energy investments across the world, planning to unveil it at this year’s U.N. climate talks in Dubai
• The fund aims to be one of the largest state-sponsored efforts to help fight climate change

🔭 The context: The UAE and Sultan al-Jaber have drawn criticism for hosting the COP28 summit, as they are one of the world's largest contributors of greenhouse gases
• The proposed fund represents a major financial effort to shift energy economies off fossil fuels, aiming to achieve net-zero emissions by mid-century, amid a growing requirement for trillions of dollars to mitigate the irreversible effects of climate change

🌎 Why does it matter for the planet: The fund would help fill a financial gap for countries transitioning from fossil fuels, encouraging investments in climate-friendly initiatives and attempting to steer finance to developing nations

⏭️ What's next: The success of the fund will depend on its design and execution, focusing on inclusivity to encourage investment in poorer countries where returns are less certain
• There are potential tensions with wealthy governments and less developed nations regarding the focus of the fund, which may create challenges in securing global collaboration

💬 One quote: “It’s not just about funding — it’s about justice and recognizing the vast disparities intensified by climate change” (Madeleine Diouf Sarr, Head of the Climate Change Division in Senegal's Ministry of Environment and Sustainable Development)

📈 One stat: The fund could be at least $25 billion, making it one of the largest ever state-sponsored financial efforts to help countries fight climate change

Click for more news covering the latest on oil & gas