THE 2023 United Nations Climate Change Conference (COP28) was a watershed moment in global climate action. Nearly 200 nations committed to ambitious targets, including tripling renewable-energy capacity and doubling energy efficiency by 2030. The spotlight shone on blended finance as a strategic tool for sustainable development, and a phased withdrawal from fossil fuels signalled a new era of decarbonisation.

However, the COP28 declaration raises three critical areas that need sharper focus: realignment, retirement and reinforcement.

First, realignment of the energy value chain is essential. Doubling energy efficiency and tripling renewable-energy capacity to 11 terawatts within this decade will require an unprecedented global commitment. This is not just about transitioning away from fossil fuels, but also embracing low-emission technologies, including nuclear energy. This will require extensive collaboration, sector-based approaches, capability development, and replicable use-case models, particularly across hard-to-abate sectors such as the industrial and real-estate sectors. While challenging, this shift presents significant opportunities, especially in South-east Asia where tripling renewable-energy capacity from 100 gigawatts (GW) to 300 GW by 2030 will create vast demand for financing, technology and supply chains.