Shami Nissan, Partner and Head of Sustainability at Actis, commented:
“It’s very encouraging to see COP28 kick-off with a strong start, with an agreement on a global loss and damage fund from day one of COP. Hopefully this momentum can be maintained throughout the conference.
“This fund has long been a sticking point in international climate negotiations so the deal that has been reached represents an important breakthrough. While all countries are exposed to climate risks, the science shows that on the whole developing countries are more likely to be affected and experience disproportionate loss and damage. In other words, those with the fewest means will have the highest price to pay. This is why an agreement was so important if we are to have a Just Transition.
“As an investor with decades worth of experience of investing in emerging markets, Actis is fully aware of how significant climate risks can be and this is one of the reasons why we put sustainability at the heart of our investment strategy. We believe that by investing in sustainable infrastructure and creating sustainability leaders we both minimise risks as well as enhance the value of our investments.
“This COP28 agreement is not the end of the story however. Without wishing to rain on the parade, it’s important to caution that we now need to see the agreement implemented and followed through in practice, with donor countries acting on their commitments.
“Summits like COP always require compromise and goodwill between nations, and it’s great to see that today the COP system of bringing countries together to negotiate on climate seems to have paid off.”