Challenge of climate change

COP28 is held as the hottest year in history draws to a close [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. As the hottest year on record draws to a close, more than 165 heads of state and government are gathering in Dubai to discuss [what to do about it](. But with wars in Europe and the Middle East and economic headwinds blowing, they’ll have to overcome significant tensions to get a deal. Plus, there’s a lot of controversy around the host nation. The COP28 president, Sultan Al Jaber of the United Arab Emirates, has been accused of double standards. He wants to get countries to agree to phase down fossil fuels, while also running the state-owned oil producer Abu Dhabi National Oil Co. He’s denied reports that he was willing to raise oil and gas commercial interests during climate meetings with foreign governments ahead of the summit. If true, that could create anger among the 197 negotiating country representatives attending, putting a deal out of reach.  Al Jaber has said he sees this COP as the most consequential since the Paris Agreement in 2015 saw nearly 200 countries promise to keep the rise in global temperatures compared to pre-industrial levels well below 2 degrees Celsius while striving to limit them to 1.5C. He has said he regards his job as an opportunity to co-opt the fossil fuel industry into tackling emissions. One of the star announcements is expected to be a pledge by the sector to eliminate emissions of methane. Perhaps the most positive development so far has been the improved diplomatic mood between the US and China. The world’s top two polluters agreed earlier this month to publish more expansive emissions-cutting pledges and back a target to triple renewable energy. This year will be the first time countries will hold a global stocktake since Paris. That means they’ll be forced to confront the reality that they’re not doing nearly enough to halt a calamity that’s coming ever nearer.— [Jess Shankleman]( Buildings and houses destroyed by flooding in Derna, Libya, on Sept. 17. Photographer: Zohra Bensemra/Reuters/Redux Global Must Reads Israel’s government passed a revised 2023 budget that retains discretionary [spending]( for religious schools and projects including the development of Jewish settlements in the West Bank, despite warnings it would burden the economy as the nation wages its war against Hamas. A deal that [paused]( the conflict is due to expire tomorrow while talks on extending it drag on. Israeli soldiers during a raid at the Balata camp for Palestinian refugees in the West Bank on Nov. 19. Photographer: Jaafar Ashtiyeh/AFP/Getty Images US President Joe Biden came out swinging against Donald Trump at a campaign event yesterday, saying the Republican frontrunner and his supporters want [to destroy American democracy](. With polls showing Biden trailing his predecessor before next year’s election, he assailed Trump for his support for abortion restrictions and his calls to repeal Obamacare health-care benefits, saying: “If Trump gets his way, it’s all gone.” Chinese President Xi Jinping spent his first decade in office accumulating power at the expense of the Communist Party’s No. 2 official. Now that he’s installed a trusted loyalist as premier, the nation’s most powerful leader since Mao Zedong is getting more comfortable [delegating authority](. Last week, state media revealed Li Qiang is overseeing the Central Financial Commission created in March — analysts had expected his boss to take the job. Europe’s era of extra-large stimulus is over. That much is clear after a ruling by Germany’s top court forced the government to recalibrate its budget and rethink how it manages public finances. After spending freely to fight the Covid pandemic and the Ukraine war-induced energy crisis, the European Union’s long-standing rule [limiting budget deficits]( to 3% of gross domestic product and public debt to 60% of GDP is supposed to kick in again in January. Oil executives are flocking to Venezuela after the US eased sanctions under a deal giving President Nicolas Maduro until the end of the month [to make significant advances]( toward holding fair elections. He has yet to do so, but Shell and Repsol are among those sending delegations to Caracas anyway, effectively betting that Washington won’t snap back curbs on doing business. Congressional negotiators yesterday were poised to abandon plans to use the annual defense policy bill to tighten controls on [US investment in Chinese technology,]( sources say. Argentine President-elect Javier Milei met with US officials days ahead of his inauguration as the libertarian looks [to shore up support]( for his radical plans to fix the crisis-torn economy. A Russian oil tanker sanctioned by the US [is still floating]( about 1,600 miles from the Indian port where it was due to unload as New Delhi grapples with a dilemma over whether to let the vessel dock. Washington Dispatch Biden today will tour a wind tower manufacturer in Pueblo, Colorado, to promote his climate agenda. His visit unfolds a day before the beginning of the COP28 summit, which, sources say, the president does not plan to attend. Vice President [Kamala Harris will represent the US]( in Dubai. The president has yet to see much reward from voters after the passage last year of his Inflation Reduction Act, which promotes clean energy investment. At the same time, his climate initiatives, especially policies and programs to advance electric vehicles, have been attacked by conservative critics as too costly and restricting consumer choice. Despite the overwhelming evidence of global warming, inflation and the economy remain the chief concerns of many Americans. And voters in the Netherlands and Argentina recently delivered victories to populists who have disparaged climate initiatives, much like Biden’s likely 2024 opponent, Trump. One thing to watch today: The Supreme Court will hear arguments in a case regarding the Security and Exchange Commission’s use of in-house judges. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day Cars imported from China were practically impossible to find in Mexico until about 2016, when they only made up a tiny fraction of total sales. Last year, [Mexico was the No. 1 importer of Chinese models](, with buyers choosing them because they are cheaper and seen to have more advanced technology for the price. Where Mexico goes, will the world follow? And Finally India is set to add a second locally built aircraft carrier to its fleet that can hold at least 28 fighter jets and helicopters, sources say. The vessel will join the country’s two other carriers, the homemade INS Vikrant and one built by Russia, [in a show of strength]( at a time when the naval wing of the Chinaese People’s Liberation Army — the largest navy in the world, with 370 ships and submarines — is increasingly making its presence felt in the Indian Ocean region. India’s first indigenous aircraft carrier INS Vikrant. Photographer: Imtiyaz Shaikh/Anadolu Agency/Getty Images More from Bloomberg - [Green Daily]( newsletter for comprehensive coverage of the climate summit right in your inbox. - Watch the [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. 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