From its role in securing the first international agreement for cutting global emissions (Kyoto 1997) to the creation of the Climate Change Act (2008), the Labour party has a proud history on climate action at home and on the world stage. This November, COP29 in Azerbaijan is a critical opportunity for the new Labour government to build on that track-record and demonstrate that the UK is back as a progressive actor on the world stage.
Taking an approach to international climate action that is guided by a recognition of our country’s responsibility towards developing countries and the most climate vulnerable communities around the world, it is important for the government to lead in delivering progress in the following areas:
- An immediate global end to new fossil fuel production, alongside a full global phaseout of fossil fuels – equitably delivered in line with principles of historic responsibility and economic capability;
- Accountability for corporate and financial sector polluters through more robust international and domestic taxation and regulation;
- A significant increase in public finance from developed countries to support the poorest and most climate-vulnerable countries – including delivering an ambitious post-2025 new collective quantified goal for climate finance; delivery by global north countries of significant new and additional public finance for developing countries to deliver action on climate and nature; action to address the debt crisis faced by developing countries; and reform of multilateral development banks (MDBs) and international finance institutions (IFIs).
Putting these goals into practice at COP29
In November, delegates from around the world will meet in Baku, Azerbaijan for the next COP of the United Nations Framework Convention on Climate Change (UNFCCC). The new Foreign Secretary has made clear that rebuilding trust with developing countries will be a key priority for the new government – but this will only be possible through leading by example with bold climate action at home, and delivery of meaningful increased public finance commitments from global north countries. To demonstrate that the UK is once again playing a progressive and constructive role on global climate action, the government must:
1: Support a global fossil fuel phaseout and renewable transition through:
- Putting forward an updated UK Nationally Determined Commitment (NDC) for cutting domestic emissions by 2035. This must be aligned with the goal of limiting global temperatures to 1.5c, including the following commitments at a minimum: a robust energy transition plan to end new oil and gas; a deadline to phase-out fossil fuels entirely (for UK fossil fuel production, the phase-out date should be 2035 at the latest; and targets for oil and gas demand reduction should be set by 2035); more funding (at least £1.1bn per year for retraining) and a robust strategy, in collaboration with workers and unions, to support workers to transition to renewables and other green industries; and clear implementation plans and sufficient funding to meet the goals agreed in the COP28 Global Stocktake outcome to triple renewable generation capacity by 2030 and double energy efficiency installations by 2030 at an absolute minimum.
- Actively advocating for global agreement under the UNFCCC to end all fossil fuel expansion, phase out all fossil fuels (abated and unabated) – with the richest, most historically polluting countries moving fastest – and support a just transition for workers to renewable industries. At least 126 other countries support a global fossil fuel phaseout already.
- Building on Labour’s bold policy to end new oil and gas licences by using all diplomatic channels to push other countries to adopt the same policy, and joining the Beyond Oil and Gas Alliance. This would send a powerful signal to the world as an advanced economy with a significant existing oil and gas industry, and as the home of two of the world’s biggest oil and gas companies.
- Advancing Labour’s idea for a global Clean Power Alliance to promote global renewable energy expansion. The alliance could support knowledge-sharing, collective purchasing, supporting routes to market in emerging economies, and facilitating greater interconnection between national and regional electricity grids.
2: Back a significant increase in public finance from developed countries to support the poorest and most climate-vulnerable countries, through:
- Championing an ambitious needs-based new collective quantified goal (NCGQ) at this year’s “finance COP”, with a significant and transparent grants-based public finance component provided by high-income countries, in line with their historic responsibility and capacity, and clear sub-goals for mitigation, adaptation, and loss and damage. This is vital to rebuild waning trust in negotiations and ensure the costs of climate change are no longer borne by those least responsible for the emissions causing it.
- Supporting a COP outcome that commits countries to introduce more taxes on polluting companies, including the fossil fuel industry, for climate-impacted communities at home and abroad. If introduced in OECD countries in 2024 at a low initial rate of $5 per tonne of CO2e increasing by $5 per tonne each year, a fossil fuel extraction tax, backed by over 100 climate groups around the world, would raise a total of $900 billion by 2030. The revenues could be transferred to the newly established Loss and Damage Fund for assisting developing countries in their response to climate impacts, and directed to support communities with the climate transition in countries where the tax is imposed.
- Committing to commission an independent review into UK polluter tax options to raise more UK public funds for climate-impacted communities at home and abroad – with a view to introducing additional mechanisms before the end of 2025. Options such as a tax on fossil fuel extraction, taxes on fossil fuel trading, and higher taxes on fossil fuel dividends and share buybacks should be included within the review. Fossil fuel producer subsidies should be ended and funds redirected immediately for the purposes outlined above (worth around £3.35bn/yr).
- Addressing the debt crisis faced by low and middle-income countries, and reforming multilateral development banks (MDBs) and international finance institutions (IFIs). Legislation should be introduced in the UK to incentivise private creditors to take part in debt relief. MDB and IFI reforms should include democratising decision-making and ending all investments in all fossil fuels.