In December 2023, COP28 concluded with a historic agreement that echoed a resounding call for the ‘beginning of the end’ of the fossil fuel era[1]. The global stocktake emerged as the central outcome, providing a comprehensive framework for nations to develop robust climate action plans by 2025. Mosaic International, a leading business consultancy, offers a keen insight into the implications of this landmark decision, especially for UK SMEs.
Global Stocktake and Climate Goals
The COP28 stocktake underscores the urgent need for a 43% reduction in global greenhouse gas emissions by 2030 to limit global warming to 1.5°C. However, the acknowledgment that countries are currently off track in meeting their Paris Agreement goals highlights the gravity of the situation.
Resilience and Loss & Damage Fund
The conference commenced with the World Climate Action Summit, leading to a historic agreement on the operationalisation of the loss and damage fund and funding arrangements. Over USD 700 million in commitments have been made to date, marking a significant step towards helping countries strengthen resilience to the impacts of climate change.
Climate Finance Opportunities
COP28 witnessed substantial commitments to climate finance, including a boost to the Green Climate Fund’s second replenishment, reaching a record USD 12.8 billion from 31 countries. For small businesses, this opens new funding opportunities, particularly for those focused on climate adaptation, resilience, and sustainable practices.
Carbon Markets and Small Businesses
While no agreement was reached on carbon markets due to concerns around supervision and accounting, the issue remains critical for businesses seeking vibrant and high-integrity carbon markets. This unresolved matter emphasises the need for continued discussions at COP29.
Implications for UK SMEs
- Climate Finance and Funding Opportunities
The establishment of the Loss and Damage Fund and other financial pledges could provide a crucial lifeline for UK SMEs, not only offering opportunities to access funding for climate adaptation, resilience, and sustainable practices but also allowing businesses to identify the benefits of adopting a net-zero strategy.
With the support of Mosaic International, this strategic shift enables SMEs to access carbon credits, reduce dependence on the national grid, and engage in responsible practices such as recycling, reusing, and repurposing. By embracing these elements, businesses can not only secure financial support but also create a more sustainable and environmentally conscious operation, fostering a positive and increasingly favourable reputation in the market.
- Market Shifts and Consumer Trends
Amidst global policies emphasising sustainability, SMEs can align with the surging consumer demand for eco-friendly products and services. Embracing greener practices not only situates businesses in the burgeoning sustainability market but also positions them to attract environmentally conscious consumers.
At Mosaic International, our expertise can guide your business transformation, addressing the challenges of a fiercely competitive market while unlocking the competitive advantages inherent in embracing net-zero initiatives.
- Networking and Collaboration
COP28 has underscored the importance of collective action. UK SMEs can benefit from networking, joining industry alliances, and collaborating on sustainability initiatives to amplify their impact and stay abreast of evolving environmental standards. By doing nothing you risk losing out to your competitors who gain a reputation for ‘doing the right thing.’ If you need further support, Mosaic International can help.
Mosaic International’s Role
Mosaic International, with its focus on helping businesses achieve net zero and implement sustainable supply chain management, stands at the forefront of guiding SMEs through these transitions. Offering services ranging from understanding net zero implications to providing transformational leadership, we are a key partner for businesses looking to navigate the changing landscape.
As the world collectively moves towards a sustainable future, UK SMEs must embrace the opportunities emerging from COP28. Mosaic International’s expertise in net zero procedures and supply chain management position us as a valuable resource for businesses seeking guidance in this transformative era.
To embark on your Net Zero journey, contact Mosaic International today. The future of your business and the planet may depend on it!
[1] https://unfccc.int/cop28