Good morning from Geneva.
The world will be “transitioning away from fossil fuels in energy systems” by 2050. That, combined with ambitions of tripling of renewable energy capacity globally by 2030, is the main outcome of COP28, the UN climate meeting in Dubai. Is that a good outcome for business? I asked some executives who were present in Dubai, and this is what they told me:
“The decision to transition away from fossil fuels, triple renewable energy, and double energy efficiency, secures a milestone…for a net-zero future. This is a good first step from a complicated COP process, but not enough given the urgency of the climate challenge. The world will increasingly look to business to turn these words into action.”
—Peter Bakker, CEO, World Business Council for Sustainable Development
“Expectations were low and lobbying by fossil industry and several oil producing nations was intense. In that light having an agreement explicitly calling for net zero by 2050 and transitioning away from fossil was a diplomatic achievement. What now counts is if we can truly translate words into action. […] This assumes no slipping next year when fossil industry gets another shot.” (Editor’s note: Azerbaijan, another country rich in oil and gas resources, will host next year’s climate summit.)
—Paul Polman, Vice Chair, United Nations Global Compact; former CEO, Unilever
To agree to transition away from fossil fuels at the same time as agreeing to triple renewables by 2030 is a pivotal moment in the fight against the climate crisis…The hard work to deliver starts today. It means mobilizing huge investments in renewables, as well as grids and storage, the other two critical legs of a stable energy transition.”
—Ignacio Galan, Executive Chairman, Iberdrola
“The UAE Consensus is a historic step that recognized the importance of the energy trilemma—achieving affordability and availability as well as sustainability—and that on fossil fuels, reduction in demand must be achieved, not just reducing production. And that the transition must be just and orderly and equitable—keeping the growing energy needs of the developing world in mind.”
—Majid Jafar, CEO, Crescent Petroleum
“The good thing is that there is a recognition for the reduction of need for consumption and production of fossil fuels…More than ever before, the conversation has been about adaptation and…a just energy transition. That will be an important factor of roadblocks or enablers…Clarity on global language will bring clarity to the market, which in turn will help capital allocation.”
—Emmanuel Faber, Chair, International Sustainability Standard Board
More news below.
Peter Vanham
peter.vanham@fortune.com
@petervanham
TOP NEWS
An AI deal
OpenAI, the developer behind ChatGPT, has agreed to pay Axel Springer, the German media giant behind Bild, Die Welt, Politico, and Business Insider, to use its content to train AI models. ChatGPT will also now provide summaries of Axel Springer articles, with proper attribution, in its answers. “We want to explore the opportunities of AI-empowered journalism—to bring quality, societal relevance, and the business model of journalism to the next level,” said Axel Springer CEO Mathias Döpfner. Fortune
Taiwan’s Dutch disease
The chipmaker TSMC may be the world’s leading manufacturer of advanced chips, but voters in Taiwan are worried the island’s economy may be too dependent on the company. Taiwanese are worried that the tech sector sucks up too much investment, and threatens the environment. Chips make up 42% of the island’s exports, up from 33% in 2016. Financial Times
A long winter
Meituan, China’s food delivery giant, is hiring an extra 300,000 drivers to keep people fed over the winter, according to local media. China is currently going through a surprise cold snap—which may mean more families staying at home and ordering takeout. Just two weeks ago, the company’s chief financial officer warned of slower-than-expected growth for the current quarter, blaming unseasonably warm weather. South China Morning Post
AROUND THE WATERCOOLER
Evofem, the startup trying to survive the broken birth-control market, finally sells itself by Maria Aspan
Bosses are using tougher performance reviews to cut workforce without layoffs because employees aren’t quitting by Trey Williams
China’s carmakers need to design electric cars twice as fast as established companies if they want to survive the country’s cutthroat EV market by Nicholas Gordon
TikTok is so popular it’s closing in on Candy Crush as users cross $10 billion in global spending by Chris Morris
British Goldman Sachs top commodities trader is retiring after making $100 million in 3 years—topping what CEO David Solomon pulled in by Prarthana Prakash
This edition of CEO Daily was curated by Nicholas Gordon.
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