The need for dialogue, knowledge sharing, technology transfer and vast financial support

During the PreCOP28 in Katowice, business leaders representing local Climate Governance Initiative chapters from Poland, Turkey, Malaysia and Uzbekistan  joined a debate about the green transition and the opportunities it can offer to developing markets and businesses. The debate was a part of arrangements made ahead of the COP28 conference and centred on the ways to accelerate climate transition in economies at different stages of development and facing various challenges. 

Implementation of climate transition strategies in business, especially in developing markets, requires a great deal of work, but offers a lot of potential for growth. Seeking solutions supporting the transition of developing economies and businesses should be one of the key points on the COP28 agenda. 

The participants of the debate highlighted how important it is to mobilise business leaders in the developing markets so that they become role models and ambassadors for the transition. The process of building and implementing a credible climate transition strategy for companies in less experienced markets will be very difficult without adequate support.  It is essential to build an open channel of communication between markets less and more advanced in climate transition. Sharing knowledge and best practices at the level of members of companies’ governance and supervisory structures will play a key role.

Nevertheless, significant financial support for the climate transition of companies in emerging and developing markets is equally important. International financial institutes, the private banking sector and investors, by providing financial support to implement companies’ climate transition strategies, are significantly contributing to the transformation of entire sectors and markets. Special support is needed for small and medium-sized companies with limited resources and knowledge. Without implementation of climate transition they may fall out of the supply chains in which they find clients for their products and services.

In addition, without the transfer of modern technologies to support, the transformation will be a slow and difficult process.

The panelists agreed that the role of COP28 is to establish governments’ consensus on clear and unambiguous regulatory solutions to support the faster transition from fossil fuels and the transformation of economies to net-zero. At the same time, dialogue and support of emerging markets is necessary to make the transition not only a costly process for business, but also a way to build their competitive advantage.

You can find the recording here >>