The Global Initiative for Economic, Social and Cultural Rights (GI-ESCR) participated in the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), which was held from 30 November to 12 December 2023 in Dubai, United Arab Emirates.

Amid a very controversial presidency of the COP28 led by the United Arab Emirates, climate change negotiations brought together over 90,000 delegates from member States, civil society organisations, constituencies and other actors engaged in climate policy from all over the world.

The first day at the COP28, after decades of civil society mobilisations, the Fund for Loss and Damage was finally established. However, the World Bank as the temporary host of the fund, faces criticism for its historic failure to respond to the needs of the most marginalised. Furthermore, States made inicial pledges amounting to 700 million USD on loss and damage finance, but these promises fall short of the billions needed annually to address the loss and damage suffered by the most vulnerable areas to the climate crisis. In this context, progressive and green fiscal policies can play a critical role to bridge the gaps in finance needed.

Other streams of negotiations within the UN climate change negotiations open opportunities to discuss tax policy in the context of climate change. These include the discussions to define the workplan of the Standing Committee on Finance, as well as to continue the work under the Sharm el-Sheikh dialogue on the scope of Article 2(1)(c) of the Paris Agreement. These two spaces, focused on increasing and algning financial flows with climate-resilient development, open avenues to consider fiscal policy as a key to mobilise the unprecedented amount of resources required for effective climate action.

Discussion related to taxes on carbon and polluting activities has also been brought up in UN climate change negotiations as part of the so-called “non-market mechanisms” envisaged under Article 6 of the Paris Agreement that can enhance cooperation among countries to mitigate greenhouse emissions. The logic is that putting a price on polluting activities not only can generate important revenues for the State, but encourage a change in production and consumption patterns that foster more sustainable practices.

Zooming in on the negotiations related to just transition, it is worth highlighting that for the first time a work program on just and equitable transition was adopted at COP28. This will allow the creation of a new stream of negotiations under the UN climate change framework to discuss means to achieve the objectives of the Paris Agreement through a comprehensive plan to transform energy, the workforce and social and economic structures. It is worth mentioning that the final text of the workplan incorporated a human rights and a gender perspective, along with the recognition of the need to ensure inclusive and participatory approaches. The new track of negotiation on just transition thus brings the opportunity to discuss the social justice implications of climate policy across all workstreams of UN climate change negotiation.

Finally, in the outcomes of the Global Stocktake, we saw a historic recognition of the need to ‘transition away from fossil fuels’. This is a victory, which will help to push for a just energy transition to clean, renewable energies; however, the statement lacks urgency. It does not mention a clear, time-bound commitment to clearly phase out fossil fuels in line with the critical recommendations of the Intergovernmental Panel on Climate Change (IPCC). Moreover, the outcomes of the Global Stocktake contain language that allows for fossil fuels to continue being used fostering “false solutions'' to the crisis. Still there is much work to be done to ensure a fast, fair, funded, and equitable phase out of fossil fuels.

GI-ESCR will strengthen its participation at UNFCCC spaces to push for the fiscal policy and the just transition agendas to play a central role in the climate debate and contribute to align climate policy with human rights and gender equality principles.