<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107337934-1700666009902-gettyimages-1244922530-AFP_32P27JV-820x461.jpeg" alt="" class="wp-image-433692" style="width:818px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107337934-1700666009902-gettyimages-1244922530-AFP_32P27JV-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107337934-1700666009902-gettyimages-1244922530-AFP_32P27JV-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107337934-1700666009902-gettyimages-1244922530-AFP_32P27JV-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107337934-1700666009902-gettyimages-1244922530-AFP_32P27JV-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107337934-1700666009902-gettyimages-1244922530-AFP_32P27JV-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107337934-1700666009902-gettyimages-1244922530-AFP_32P27JV.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Investors looking to enter the wine market should consider factors including quality, rarity and provenance. Jeff Pachoud | Afp | Getty Images</figcaption></figure>



BEAUJOLAIS, FRANCE — “There are few things in life that can’t be enhanced by a fine wine,” reads a translation of a sign in Villefranche-sur-Saône, Beaujolais, as the French wine region marks its new season.



That’s a motto that’s increasingly being applied to investments, as oenophiles and investors alike seek to diversify their portfolios with a more eclectic mix of assets.



With low correlation to the global stock market, a good collection of the alcoholic stuff can be an excellent accompaniment to traditional investments. But not all wines are made equal, and knowing where to start can require a seasoned palate.



“Unlike enjoying a bottle of wine where you open it, you drink it with friends and you have a great time, there are many, many years of learning and understanding that go into appreciating fine wine,” Nick Pegna, Sotheby’s global head of wine and spirits, told CNBC.



“That, I think, is very appealing: It is an intellectual as well as a hedonistic experience for people.”



<h2 class="wp-block-heading" id="h-rewarding-returns"><a></a>Rewarding returns</h2>



Fine wine consistently ranks as one of the best-performing alternative asset classes within the Knight Frank Luxury Investment Index, which compares the annual returns of collectibles including art, watches, cars and handbags.



Over the past 10 years, fine wine prices have risen 149%, the second-highest return of any alternative investment after whiskey (322%) — and well ahead of cars, coins and jewelry.



The most celebrated bottles among them grew even more, with wines from France’s Burgundy region — celebrated for its pinot noir and chardonnay grape varieties — increasing 214% over the same period.



However, as with the aging process itself, investing in fine wine typically takes time and a strong stomach.



Prices fell 11.3% in the year to October, retreating from a high base after a Covid-induced rally, according to the Liv-ex Fine Wine 100 benchmark, which tracks the 100 most traded fine wines on the secondary market.



“It’s not a short-term play; never has been,” said Anthony Maxwell, chief commercial officer at the wine trading marketplace. “Certainly, wine is a five years minimum, it’s a medium outlook and beyond.”



<h2 class="wp-block-heading"><a></a>Honing your taste</h2>



Investors looking to enter the wine market can think of the investment as&nbsp;<a href="https://www.cnbc.com/2023/11/09/how-to-invest-in-art-what-to-buy-where-to-look.html">a piece of art</a>, according to experts, with quality, rarity and provenance all key factors to consider.



“It needs to improve with age in the bottle, there needs to be some brand recognition, and — perhaps crucially — it needs to have a resale value,” Maxwell said.



For that, research is key, said Maxwell, noting that improved access to data over recent years has made it easier for new entrants to assess brands’ ratings, critical acclaim, production processes and consumption rates.



“With better data, with more transparency, it has helped turn what was maybe a bit of a bit of a closed club, a closed shop, into something far more approachable for far more people,” he said.



Still, underneath the facts and figures, investors should also have a true enthusiasm for wine, experts agreed.



“It’s a passion,” Pegna said. “If you don’t enjoy drinking great wines then it becomes a rather boring investment class.”



<h2 class="wp-block-heading"><a></a>Buying at auction</h2>



Wineries and wine merchants can be an excellent starting point for investors looking to access young wines at a lower price to he held for the long term. Auction houses, meanwhile, provide access to already highly esteemed brands and collectible bottles.



Currently underway at Sotheby’s is a year-long sale of 25,000 bottles curated by Taiwanese art collector and businessman Pierre Chen, with auctions being held in Hong Kong, Paris, Burgundy, New York and London through late 2024.



The collection, titled “An Epicurean’s Atlas,” is expected to fetch up to $50 million across the five sales, which Sotheby’s Pegna said spoke to the highly lucrative nature of the market. A magnum of Henri Jayer Vosne Romanee Cros Parantoux 1er Cru, for example, set to garner around $70,000.



“What is clear is that [Chen] was exploring vineyards in Burgundy in the early days before people were really spending much time there. But he’s also taken some expert advice in building it up,” Pegna said.



The sale comes as increased accessibility and a growing consumer base have sparked a boon in the market.



Fine wine auctions at Sotheby’s have almost tripled in value in the past decade, rising from $58 million in 2013 to $158 million in 2022. Over the same period, the number of bidders has increased by nearly 400% and the number of new bidders by almost 500%, two-thirds of whom are in their 30s and 40s.



“There is a huge amount of new interest,” Pegna said. “Nearly half of our new buyers are coming from the U.S., but also the younger demographic.”



<h2 class="wp-block-heading"><a></a>Things to consider</h2>



Unlike many traditional investments, chattels, or tangible assets such as wine, are often exempt from capital gains tax, adding to their appeal. However, it is important to seek local advice and factor in the costs of trade, which can eat into overall returns.



“You’ve got to be prepared to accept 10% on the way in and 10% on the way out,” Maxwell said.



Depending on the size of the collection, storage is also an important consideration. Experts recommended storing the wine in bond — or authorized storage facilities — which are typically exempt from tax implications, such as VAT, and can help protect the integrity of the bottles.



They can also prevent any “fits of enthusiasm” to taste it, Pegna noted.



Lastly, decide ahead of time which bottles you’re buying to “lay down” — or store — and which you plan to drink.



“Often, people rationalize what they’re doing in terms of investment and then change their minds later on because they come to love the collection and want to drink it,” said Pegna. “If you can, make the decision upfront about what is being bought to lay down and what you’re looking to drink.”



As for the experts’ hot tips for the next investible tipple? Well, according to Maxwell, there’s one often overlooked vintage.



“You could definitely do worse than buying a few cases of 2016 Bordeaux,” he said. “And if everything goes wrong, you’ll have some delicious wine to drink at the end of it.”

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-820x462.jpeg" alt="" class="wp-image-433063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107343067-1701767843065-gettyimages-1415687423-yuanybandera7.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chinese yuan cash bills and chinese flag (money, economy, finance, inflation, crisis) Javier Ghersi | Moment | Getty Images</figcaption></figure>



Ratings agency Moody’s downgraded its outlook on China’s government credit ratings to negative from stable, expecting Beijing’s support and possible bailouts for distressed local governments and state-owned enterprises to diminish China’s fiscal, economic and institutional strength.



Moody’s though retained China’s “A1” long-term rating on the country’s sovereign bonds, while expecting China annual GDP growth to slow to 4% in 2024 and 2025 and average 3.8% from 2026 to 2030.



Structural factors including weak demographics will drive a decline to 3.5% by 2030, it said.



The move underscores concerns over rising debt levels and the impact on broader growth in the world’s second-largest economy as Beijing resorts to fiscal stimulus to support local governments and contain the spiraling debt crisis among the country’s property developers.



“The outlook change also reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector,” Moody’s said in a statement issued Dec. 5.



“These trends underscore the increasing risks related to policy effectiveness, including the challenge to design and implement policies that support economic rebalancing while preventing moral hazard and containing the impact on the sovereign’s balance sheet,” Moody’s added.



China credit default swaps (the cost of insuring against a government default) rose 4 basis points from Monday’s closing level, according to Reuters data.



<h2 class="wp-block-heading" id="h-beijing-disappointment"><a></a>Beijing disappointment</h2>



China’s Finance Ministry expressed its disappointment with Moody’s downgrade decision.



“Moody’s concerns about China’s economic growth prospects and fiscal sustainability are unnecessary,” the ministry said in a statement Tuesday.



“Since the beginning of this year, in the face of the complex and severe international situation, and against the background of unstable global economic recovery and weakening momentum, China’s macro economy has continued to recover and high-quality development has steadily advanced,” the ministry added.



The central government said Oct. 24 that it had formalized a process allowing local governments to borrow funds for the year ahead — starting in the preceding fourth quarter, according to an announcement published by state media.



Beijing also announced a rare mid-year fiscal revision, which included the issuance of 1 trillion yuan in ($137 billion) in government debt — one of the biggest changes to the national budget in years. The amount was for the reconstruction of areas hit hard by natural disasters — such as this summer’s historic floods — and for catastrophe prevention.



Moody’s also cited the 1.6 trillion yuan increase in central government transfers to regional and local governments in 2022 from 2021, which partly but only temporarily offset the 2 trillion yuan in lost land sales revenue, as a key development that factored in its thinking.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-820x462.jpeg" alt="" class="wp-image-433000" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/107341231-1701347766420-gettyimages-1820060220-sg010469_yhnqzvre.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man wearing a thawb walks past flags of nations participating in the UNFCCC COP28 Climate Conference the day before its official opening on November 29, 2023 in Dubai, United Arab Emirates. Sean Gallup | Getty Images News | Getty Images</figcaption></figure>



DUBAI, United Arab Emirates — Nearly 2,500 fossil fuel lobbyists are estimated to have been granted access to the COP28 climate conference in the United Arab Emirates, according to an analysis from advocacy groups, reflecting a sharp increase from last year.



A report published Tuesday by the Kick Big Polluters Out coalition found that at least 2,456 fossil fuel lobbyists registered to attend the two-week long summit. That’s more than almost every other country delegation, except for Brazil (3,081) and COP28 host the United Arab Emirates (4,409), the analysis said.



The findings come at the mid-way point of COP28 and as a fight over the future of fossil fuels takes center stage.



Campaigners say the number of fossil fuel lobbyists attending the talks is “beyond justification” and signals that polluting industries are seeking to advance a fossil fuel agenda at the expense of frontline communities.



Others, however, including former U.S. energy secretary Ernest Moniz, said that Big Oil’s participation at COP28 should be welcomed.



The International Energy Agency said in the run-up to the talks that the oil and gas industry faces a “moment of truth” about their role in the global energy system and the deepening climate crisis.



A COP28 spokesperson was not immediately available to comment when contacted by CNBC.



“2023 was a year like no other. Record temperatures, record levels of emissions, and now we see a record attendance from Big Polluters at UN climate talks,” said Muhammed Lamin Saidykhan, head of building movement power at Climate Action Network International, a global network of civil society organizations.



“The window to preserve a liveable planet is rapidly closing. At the same time, ever greater numbers of Big Polluters are allowed to roam around this summit, which communities on the frontlines cannot afford to have fail again,” they added.



<h2 class="wp-block-heading" id="h-phase-out-vs-phase-down"><a></a>Phase out vs. phase down</h2>



The surge in the number of fossil fuel lobbyists attending the U.N. climate talks follows a growing call from public officials, U.N. constituencies and civil society groups to eject polluters from the talks.



For many at the U.N. talks, which are being held in Dubai through Dec. 12, COP28 can only be recognized as a success if it results in a deal to phase out all fossil fuels, the burning of which is the chief driver of the climate crisis. 



Not everyone is on board with calls for a phase-out. Russia has said it would oppose this language being used in the final agreement, while COP28 host the United Arab Emirates has signaled its preference for a phase-down.



The language of the final agreement will be closely monitored. A “phase out” commitment would likely require a shift away from fossil fuels until their use is eliminated, while a “phase down” could indicate a reduction in their use — but not an absolute end.



There’s also a debate about whether an agreement should center on “abated” fossil fuels, which are trapped and stocked with carbon capture and storage technologies. “Unabated” fossil fuels are largely understood to be produced and used without substantial reductions in the amount of emitted greenhouse gases.



In an unprecedented start to proceedings on Thursday, 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.



A flurry of COP28 announcements have since sought to help decarbonize the energy sector, with nearly 120 governments on Saturday pledging to triple renewable energy capacity by 2030.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg" alt="" class="wp-image-429017" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kristalina Georgieva, managing director of the International Monetary Fund, at a press conference at the IMF Headquarters on April 14, 2023.
Kevin Dietsch | Getty Images News | Getty Images</figcaption></figure>



Dubai, UNITED ARAB EMIRATES — The head of the International Monetary Fund on Sunday underlined the case for carbon pricing at the COP28 climate summit, saying that the oil and gas industry recognizes “the writing on the wall.”



A long-time proponent of carbon pricing, IMF Managing Director Kristalina Georgieva said this approach creates an incentive for polluters to rapidly decarbonize.



Carbon pricing ascertains the cost that a company needs to pay for its planet-warming emissions and is widely regarded as the most cost-effective and flexible way to cut such pollution.



The IMF recently raised its average price forecast to $85 a ton by the end of the decade, up from a previous forecast of $75. Underlining the scale of the challenge, Georgieva said the current average price is around $20 per ton.



“For those that have adopted a carbon price, how do we get big emitters to accept that we need to accelerate decarbonization?” Georgieva told CNBC’s Dan Murphy at the COP28 conference.



“Well, two things. One, without a carbon price, it won’t happen fast enough. So, we have to move to that incentive,” she said.



“Two, Mother Nature is helping us because countries rich and poor are already experiencing the devastating force of climate change.”



Her comments come as policymakers and business leaders convene in Dubai for the U.N.’s two-week long climate summit, which is scheduled to end on Dec. 12.



The conference is a pivotal opportunity to accelerate climate action, at a time when the world is on track to record its hottest year on record and as extreme weather events take their toll across the globe.



For the IMF chief, COP28 marks an important opportunity for countries to reassess policies that incentivize the use of fossil fuels. She stressed that government subsidies for coal, oil and gas hit $1.3 trillion last year.



“Now we have to pull this gradually and substitute with the other part of the incentive, which is pricing. I want to tell everybody who is willing to listen that a carbon price has [been] proven to work,” Georgieva said, adding that existing schemes — such as the EU’s Emissions Trading System — have registered a rapid reduction of emissions.



“Two, it generates revenues. The same European Union got 175 billion euros ($191 billion) collected from [a] carbon price,” she said.



“Three, it can be fair. It is fair first, because the more you pollute, the more you pay, and the less you pollute, the less you pay. But also, many countries [can] take some of this money and give it back, especially to the vulnerable people.”



Asked about the role of the oil and gas industry at COP28 and how to get Big Oil on side with carbon pricing, Georgieva said, “One of the good news that comes from research is that we are going to see the peak of oil and gas in this decade. Consumption is then going to gradually going down.”



“One of the great news from COP is a commitment to triple renewables in energy within the next years. Where the power of COP has come is by mobilizing the voices of people and that is already happening. I cannot think of any industry that is willing to be the enemy of the people,” she continued.



“I think that oil and gas is seeing the writing on the wall. We see many of the oil-producing countries diversifying quite rapidly and we also see an investment coming from money generated from oil into renewables [at] scale.”

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IMF chief makes the case for carbon pricing as ‘writing on the wall’ for oil and gas

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-820x429.jpg" alt="" class="wp-image-432579" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/AA1kWCq1.jpg 1910w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Traffic_analyzer | Istock | Getty Images</figcaption></figure>



Gold prices notched a new record on Monday for a second day in a row — with spot prices touching $2,100 as the global rush for bullion appears set to continue.



Gold prices are on course to hit fresh highs next year and could remain above $2,000 levels, analysts said, citing geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts.



Prices of the yellow metal have risen for two consecutive months with the Israel-Palestinian conflict boosting demand for the safe-haven asset, while expectations of interest rate cuts have provided further support. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.



“The anticipated retreat in both the USD and interest rates across 2024 are key positive drivers for gold,” UOB’s Head of Markets Strategy, Global Economics and Markets Research, Heng Koon How, told CNBC via email. He estimated that gold prices could reach up to $2,200 by the end of 2024.



Similarly, another analyst is bullish on bullion’s outlook.



“There is simply less leverage this time around vs 2011 in gold &#8230; taking prices through $2,100 and putting $2,200/oz in view,” said Nicky Shiels, head of metals strategy at precious metals firm&nbsp;MKS PAMP.



<h2 class="wp-block-heading" id="h-all-that-glitters-is-gold"><a></a>All that glitters is gold</h2>



Spot gold prices rose to a new record high of $2,110.8 per ounce Monday before giving up some gains. It is currently trading at $2,084.59.



On Friday, gold touched $2,075.09 to surpass a precious intraday record high of $2,072.5 on Aug. 7, 2020, according to LSEG data.



Bart Melek, head of commodity strategies at TD Securities, expects gold prices to average $2,100 in the second quarter of 2024, with strong central bank purchases acting as a key catalyst in boosting prices.



According to a recent survey by the World Gold Council, 24% of all central banks intend to increase their gold reserves in the next 12 months, as they increasingly grow pessimistic about the U.S. dollar as a reserve asset.



“This means potentially higher demand from the official sector in the years to come,” Melek said.



A possible policy pivot by the Fed in 2024 could also be on the cards, he added. Lower interest rates tend to weaken the dollar and a softer dollar makes gold cheaper for international buyers thus driving up demand.



The Fed started its steady stream of rate hikes in March 2022 as inflation climbed to its highest in 40 years, diminishing gold’s appeal. 



Higher interest rates hurt demand for gold, which does not pay any interest, as assets such as bonds become more lucrative due to their higher yields.



On Nov. 29, Fed Governor Christopher Waller said he envisioned easing policy if inflation data continues to ease over the next three to five months, prompting analysts to forecast a spike in gold prices.



On Friday, while Fed Chairman Jerome Powell pushed back on expectations for aggressive interest rate cuts ahead, his remarks indicated the Fed may at least be done hiking for now.



“We believe the main factors buoying gold in 2024 will be interest rate cuts by the U.S. Fed, a weaker U.S. dollar and high levels of geopolitical tension,” BMI, a Fitch Solutions research unit, said in a recent note.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-820x462.jpg" alt="" class="wp-image-431529" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Bill-Gates-delivers-a-speech-on-Oct.-11-2023-in-Brussels-Belgium.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Bill Gates delivers a speech on Oct. 11, 2023 in Brussels, Belgium. Thierry Monasse | Getty Images News | Getty Images</figcaption></figure>



Dubai, UNITED ARAB EMIRATES —&nbsp;<a href="https://www.cnbc.com/quotes/MSFT/">Microsoft</a>&nbsp;co-founder Bill Gates on Friday shared his “big hope” for this year’s U.N. climate conference and said he was “definitely glass half-full” when it comes to preventing the worst of what the climate crisis has in store.



Speaking as world leaders convened in Dubai in the United Arab Emirates on the second day of the&nbsp;<a href="https://www.cnbc.com/cop28/">COP28 summit</a>, Gates said he believed there were many encouraging climate solutions but that these projects required the necessary support from policymakers and business leaders.



“Now, we need to take what looks very promising and scale it up, build the pilot plants, prove those out,” Gates told CNBC’s Tania Bryer on Friday. “And that requires government policies, it requires the big corporations to come in and so all these different communities that have to come together, they are represented here.”



COP28 is the United Nations’&nbsp;<a href="https://www.cnbc.com/2023/11/29/cop28-climate-summit-a-showdown-is-brewing-over-money-oil-and-carbon.html">biggest and most important annual climate conference</a>. The two-week long summit got underway on Thursday, with more than 160 world leaders expected to attend — alongside an estimated 70,000 delegates.



It is regarded as a pivotal opportunity to accelerate action to address the climate crisis at a time when global temperatures are&nbsp;<a href="https://www.cnbc.com/2023/11/08/climate-scientists-warn-2023-likely-to-be-the-hottest-year-on-record.html">hitting record highs</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/2023/08/04/south-america-argentina-and-chile-gripped-by-extreme-mid-winter-heat.html">extreme weather events</a>&nbsp;are affecting people worldwide.



“You know, I think 70,000 people and it seems like wow, do we need that many? But in fact, a lot of meetings here will be where those companies get the backing and the kind of experience of big companies, the government help and these entrepreneurs are going to come together,” Gates said.



“And so, facilitating the speed of innovation and the speed of the scale up, that’s my big hope for COP28.”



<h2 class="wp-block-heading" id="h-magic-of-invention-and-scale-up"><a></a>‘Magic of invention and scale-up’</h2>



Asked about criticism of conferences such as COP28, given that some feel they are often&nbsp;<a href="https://www.cnbc.com/2021/11/05/greta-thunberg-says-cop26-climate-summit-is-a-failure-and-a-pr-event.html">all talk and no action</a>, Gates defended the platform as a means to help drive progress across the globe.



“The collaboration between those sectors has improved a great deal,” Gates told CNBC.



“We are falling short of our aspirations in many areas and coming and saying, you know, how do we catch up? Can we do better in one area? Which countries are doing particularly well? Are there models from that?”



“It is a super important issue,” he continued. “It’s definitely glass half-full.”



“We haven’t gone as fast as we’d like and yet particularly, if you see in the innovation pavilion, these smaller companies, the ideas cover all the areas of emissions. And there’s hope that many of these clean approaches given time won’t cost extra,” Gates added.



The billionaire philanthropist said the costs of solar electricity and EV batteries have come down.



“And so, that same magic of invention and scale up, if we apply that broadly &#8230; I have hope that despite these delays and incredible complexity that the message coming out of these meetings does help drive progress,” Gates said.

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