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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-820x461.jpeg" alt="" class="wp-image-435715" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107342075-1701452590659-gettyimages-1815420439-AFP_346R8KB.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">COP28 president Sultan Ahmed Al Jaber speaks during the Transforming Food Systems in the Face of Climate Change event on the sidelines of the COP28 climate summit at Dubai Expo on December 1, 2023. Ludovic Marin | Afp | Getty Images</figcaption></figure>



Government ministers representing nearly 200 countries on Wednesday agreed to a deal that calls for a transition away from fossil fuels, after a previous proposal was met with heated and widespread backlash.



“With an unprecedented reference to transitioning away from all fossil fuels, The UAE Consensus is delivering a paradigm shift that has the potential to redefine our economies,” the summit’s UAE presidency said on social media. Dubai has been hosting the conference for the past two weeks against a backdrop of controversy, geopolitical conflicts and increasing extreme weather events.



“We delivered world first after world first,” the UAE summit presidency said in a further social media update. “A global goal to triple renewables and double energy efficiency. Declarations on agriculture, food and health. More oil and gas companies stepping up for the first time on methane and emissions. And we have language on fossil fuels in our final agreement.”



The latest proposal published by the UAE earlier on Wednesday called for “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science.”



The deal text also urged for “accelerating efforts towards the phase-down of unabated coal power” and for “tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030.”



Critically, the proposal did not mandate an absolute phase-out of hydrocarbons.



A “phase-out” commitment would likely have required a shift away from fossil fuels until their use is eliminated, while a “phase down” agreement would have indicated a reduction in their use — but not an absolute end.



Many believed the COP28 summit could only be considered a success if it resulted in a deal to “phase out” all fossil fuels. On Monday, one young climate activist burst onto the stage to call for action on this issue. Licypriya Kangujam, 12, interrupted a presidency event while holding a sign that read: “End fossil fuel. Save our planet and our future.”



The burning of coal, oil and gas is the largest contributor to climate change, accounting for more than three quarters of global greenhouse gas emissions.



The Wednesday announcement comes after a previous draft text published in the final throes of the talks triggered widespread criticism for failing to include language on ending the use of fossil fuels, as negotiations laid bare deep divisions among policymakers over the future of hydrocarbons.



The draft deal of Monday suggested a range of options for countries to accelerate climate action but, crucially, it omitted language regarding a “phase-out” or “phase down” of fossil fuels.



Alok Sharma, the U.K.’s COP26 president, on Tuesday said that only a deal including “very clear” language on the phase-out of fossil fuels and a credible plan to deliver that would be good enough to keep alive the prospect of limiting global warming to 1.5 degrees Celsius.



The 1.5 degrees Celsius threshold is the aspirational global temperature limit set in the landmark 2015 Paris Agreement. Its importance is widely recognized because so-called tipping points become more likely beyond this level.



“If we don’t reach agreement on that language, I think the consequences are going to be grave,” Sharma told CNBC’s “Street Signs Europe.”



“We have seen that 2023 is going to be the hottest year on record, we see climatic events coming thick and fast around the world. And I think the question that world leaders have to ask themselves is, if they are not willing to act now, then when?”



“This is the moment,” he continued. “This is the time in history where we have to step forward, be ambitious, come up with a deal which includes the phase-out of fossil fuels because ultimately the future of our generation, indeed, [of] future generations, absolutely depends upon it.”



<h2 class="wp-block-heading" id="h-how-did-the-talks-unfold">How did the talks unfold?</h2>



COP28 President Sultan Al-Jaber sparked a backlash earlier this month after he claimed there is “no science” behind calls for a phase-out of fossil fuels. His remarks followed reporting by the BBC ahead of the summit that suggested UAE officials were seeking to cash in on their host status to push for oil and gas deals.



A COP28 spokesperson described the documents referred to in the BBC article as “inaccurate.” Separately, Al-Jaber said last week that his team “very much believe and respect the science” and added that he’d been surprised by the “constant and repeated attempts to undermine the work of the COP28 presidency.”



Al-Jaber was seen as a contentious choice to lead COP28 discussions in Dubai given that he also works as the head of the state-run Abu Dhabi National Oil Co.



In an unprecedented start to proceedings on Nov. 30, delegates at COP28 sealed the details of a landmark deal to help the world’s most vulnerable countries pay for the impacts of climate disasters.



The operationalization of the so-called loss and damage fund prompted a standing ovation from delegates in the audience. The historic agreement was hailed as a welcome breakthrough and one that helped to clear the way for policymakers to negotiate on other major issues.



Thereafter, a flurry of announcements sought to help decarbonize the energy sector, with nearly 120 governments pledging to triple renewable energy capacity by 2030. Other initiatives launched at the conference included sizable blocs committing to expand nuclear power and slash methane emissions.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-820x461.jpeg" alt="" class="wp-image-435349" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107314945-1697000883588-gettyimages-1710873524-INDIA_ECONOMY.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pedestrians walk towards the Chhatrapati Shivaji Terminus train station at dusk in Mumbai, India, on Wednesday, Oct. 4, 2023. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



India’s stock market value has overtaken Hong Kong’s to become the seventh largest in the world as optimism about the country’s economic prospects grows.



As of the end of November, the total market capitalization of the National Stock Exchange of India was $3.989 trillion versus Hong Kong’s $3.984 trillion, according to data from the World Federation of Exchanges.



India’s Nifty 50 index reached another record high on Tuesday. It has jumped 16% so far this year and is headed for its eighth straight year of gains. In contrast, Hong Kong’s benchmark Hang Seng index has plunged 17% year to date.



India has been a standout market this year in the Asia-Pacific region. Increased liquidity, more domestic participation and improving dynamics in the global macro environment in the form of falling U.S. Treasury yields have all boosted the country’s stock markets.



The world’s most populous country also heads into general elections next year, which analysts predict could be another victory for the ruling nationalist Bharatiya Janata Party.



“For the general election, opinion polls and recent state elections indicate that the incumbent BJP-led government may secure a decisive win, which could trigger a bull run in the first three to four months of the year on expectations of policy continuity,” HSBC strategists said in a client note.



HSBC said banks, health care and energy are the best positioned sectors for next year.



Sectors such as autos, retailers, real estate and telecoms are also relatively well positioned for 2024, while fast-moving consumer goods, utilities and chemicals are among those HSBC categorized as unfavorable.



<h2 class="wp-block-heading" id="h-hong-kong-lags"><a></a>Hong Kong lags</h2>



Hong Kong’s Hang Seng index is poised to notch a fourth year of declines and is the worst performer among major Asia-Pacific equity markets.



Last week, Moody’s cut its outlook for Hong Kong from stable to negative, citing the city’s financial, political, institutional and economic ties to mainland China. That downgrade came soon after Moody’s reduced its outlook for China’s government credit ratings to negative to stable.



In early November, the Hong Kong government said it expects the economy to grow 3.2% in 2023, trimming its GDP growth outlook from the 4% to 5% forecast in August.



The city’s government has warned that increasing geopolitical tensions and tight financial conditions continue to weigh on investments, exports of goods and consumption sentiment. Consumer confidence has also suffered in Hong Kong.



“Hong Kong’s economy is poised for a soft landing in 2024 as annual real GDP growth moderates to around 2% from 2023′s 3.5%,” said economists at DBS.



“Central to this recovery is mainland tourism revival, fortifying retail and catering sectors.”



China has set a growth target of 5% for 2023. Its third quarter-GDP came in at 4.9%, lifting hopes that the world’s second-largest economy will meet or even exceed expectations.

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Why The Airbus A380 Is Making An Unlikely Comeback

COP28: What’s in the deal?

Can Saudi Arabia keep links with Israel?

COP28 climate summit ends with deal to transition away from fossil fuels

Is a war looming between Venezuela and Guyana?

Why Interest Rates Take So Long To Affect The Economy

India overtakes Hong Kong to become the world’s seventh largest stock market

U.S. vetoes Israel-Hamas ceasefire motion

How Big Pharma Is Fighting Counterfeit Drugs

Why Even Your Local Grocery Store Wants Your Digital Data

Why Tesla’s Cybertruck Is So Hard To Manufacture

What’s going on at COP28?

Why The U.S. Is Running Out Of Mining Workers

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Meet Oblivia Coalmine, the alter ego of Oscar-winning actress Olivia Coleman.

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