FirstFT: COP28 draft agreement omits phaseout of fossil fuels

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Good morning. A draft agreement from the UN’s COP28 climate summit has dropped references to the phaseout of fossil fuels, triggering a backlash from countries that accuse Saudi Arabia and other petrostates of thwarting efforts to tackle global warming.

The document, which will have to be agreed on by almost 200 countries at the summit in Dubai, sets out a range of actions that countries “could” take to cut greenhouse gas emissions to net zero by 2050.

The draft text faces fierce opposition from countries in the EU and small island states, as well as the UK, who are hoping the final version will go further by striking a landmark agreement to phase out fossil fuels, rather than just presenting the choice to cut their consumption and production.

John Silk, minister of natural resources and commerce for the Marshall Islands, said the country “did not come here to sign our death warrant”, and called for a fossil fuel phaseout, adding: “We will not go silently to our watery graves.” Here’s more on the COP28 negotiations as the summit enters its final day.

And here’s what else I’m keeping tabs on today:

• Economic data: The US reports December consumer price index inflation rate figures, while the UK publishes monthly labour market data.

• Xi Jinping visits Vietnam: Beijing and Hanoi are expected to announce infrastructure deals, including upgraded rail links, during the Chinese leader’s state visit. (Reuters)

• Volodymyr Zelenskyy in Washington: The Ukrainian president will meet US President Joe Biden days after Republican senators voted against more funding for Ukraine’s defence against Russia.

Five more top stories

1. The US Supreme Court has been asked to weigh in for the first time on Donald Trump’s legal protections. Jack Smith, the US special counsel overseeing federal criminal prosecutions of Trump, urged the Supreme Court to rule on whether a former president is “absolutely immune” from federal prosecution for crimes committed while in office. Trump has argued that he can be shielded from prosecution for his actions while in office.

2. ByteDance-owned TikTok has agreed to invest $1.5bn for a controlling stake in Tokopedia, an ecommerce unit of Indonesia’s GoTo. The deal is designed to rescue TikTok’s shopping business in Indonesia two months after the introduction of regulation threatening its ecommerce app. Analysts said the deal could provide TikTok with a template for overcoming regulatory setbacks in other markets.

3. Nvidia has become one of the most prolific investors in artificial intelligence start-ups this year. The world’s most valuable chipmaker said yesterday it had invested in “more than two dozen” companies this year — all of which are Nvidia customers — as its seeks to capitalise on its position as the dominant provider of AI processors.

• More AI news: Emmanuel Macron has warned that landmark EU legislation designed to tackle the development of AI risks hampering European tech companies compared to rivals in the US, UK and China.

4. Japanese conglomerate Panasonic has signed a deal to buy silicon from US start-up Sila to use in its global factories, a boost for Washington’s multibillion-dollar push to rival China in the EV industry. Silicon has gained ground as a potential alternative to graphite, a battery material which is overwhelmingly produced in China.

5. Emmanuel Macron’s government has lost a key vote in the National Assembly on its long-promised immigration reform. Lawmakers who usually have little in common united to block the government’s draft law from coming to debate on the floor, with those on the right regarding it as too soft and leftwing parties opposing it on grounds it was overly harsh. 

News in-depth

For more than 650 days in a row, Ukrainian president Volodymyr Zelenskyy has given at least one video address to the nation — praising his troops, celebrating advances along the front lines and reaffirming resolve in the face of Russian aggression. But with Ukraine enjoying few military achievements this year and western support faltering, former and current advisers say a lack of realism in the president’s messaging is undermining confidence.

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Additional contributions from Tee Zhuo and Gordon Smith