A turn away from fossil fuels

UN climate summit agrees to move away from fossil fuels [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. After marathon talks, delegates from 198 countries at the United Nations climate summit in Dubai hammered out a deal to [shift the global economy]( away from fossil fuels. The question remains whether the action envisaged is urgent enough to stem the planet’s warming — this year was the hottest ever recorded. The agreement is a major win for the United Arab Emirates, which had pledged to use its yearlong COP28 presidency to get fellow oil-producing OPEC members onside and commit to ambitious climate action. At times, it looked like they would fail, with COP28 President Sultan Al Jaber facing a wall of skepticism over his role as chief executive of Abu Dhabi National Oil Company. In the end, the so-called UAE Consensus calls for countries to quickly transition energy systems away from hydrocarbons in a “just” and “orderly” fashion. These caveats made the deal palatable to oil- and gas-producing nations worried about the impact of the shift on their tax receipts. And yet, the deal still leaves the door open for countries to choose how to achieve global temperature goals, rather than being told how to get there. The text delivers a mixed message on the role of natural gas, allowing countries to continue burning it as a bridging fuel. Not everyone is happy with the consensus. Anne Rasmussen, the lead negotiator for Samoa, who represented small island nations most vulnerable to the cyclones, hurricanes and rising sea levels caused by climate change, said it amounted to “an incremental advancement over business as usual.” Ultimately, as Al Jaber repeatedly reminded the conference, the future will be decided by individual governments, consumers and boardrooms. It’s how those efforts stack up into collective action that will now count.— [Jess Shankleman]( A farmer working at a wheat farm in Punjab, India, on May 1, 2022. Photographer: Bloomberg Global Must Reads A deepening rift between Joe Biden and Prime Minister Benjamin Netanyahu over Israel’s invasion of Gaza spilled into public view, with the US president calling elements of the [bombing campaign]( “indiscriminate.” The refusal of Netanyahu’s right-wing government to endorse a two-state solution for the Palestinians risks eroding international backing for Israel’s military campaign, Biden said, adding: “they’re starting to lose that support.” A Palestinian woman arrives at the Nasser medical hospital in southern Gaza on Dec. 4. Photographer: Ahmad Salem/Bloomberg President Volodymyr Zelenskiy pleaded with US lawmakers to approve $61 billion [in aid]( vital to Ukraine’s defense against Russia but left Washington with no clear commitment. While the White House warns it will run out of money by year-end for arming Ukraine unless Congress breaks the funding deadlock, the Pentagon may turn to [a workaround]( to keep weapons flowing from US stockpiles for now. Japanese Prime Minister Fumio Kishida said he would reshuffle his cabinet, following reports he would fire four ministers as a widespread scandal [raised questions]( about how long he would be able to stay in power. The ministers are among those accused of concealing income from fundraising events. Bosnia-Herzegovina was granted European Union candidate status last year but its dream of European integration appears distant at best. Discussions over whether to open membership talks with Ukraine and Moldova have contributed to the perception that some countries get preferential treatment when it comes to EU accession, while Bosnia and its neighbors in the Western Balkans [are being shunted aside](. The shock therapy policies in Argentina under President Javier Milei’s administration began with a 54% devaluation of the peso and [radical spending cuts]( amounting to 2.9% of gross domestic product. “There is no more money,” economy chief Luis Caputo said repeatedly in a recorded video. China’s top leaders including President Xi Jinping vowed to make industrial policy their top economic priority next year, [letting down investors]( hoping to see more forceful stimulus to boost growth. German Chancellor Olaf Scholz’s coalition sealed an agreement on a revised 2024 finance plan, [pushing past internal divisions]( laid bare after a critical funding tool was struck down last month by the nation’s top court. A Pakistan court decision overturning a corruption conviction for former Prime Minister Nawaz Sharif [removes a major hurdle]( in the way of his participation in next year’s elections, where he is widely seen as a top contender. Washington Dispatch A Georgetown University law student will tell a congressional committee today that his family in China faced harassment from the authorities after he became a critic of the country’s Communist Party. The student, Jinrui Zhang, says in remarks prepared for his appearance before the House Select Committee on the Chinese Communist Party that the intimidation extended to Washington: “On Georgetown’s main campus, a student who supported the CCP saw me handing out flyers and rebuked me, attempting to report me to the Chinese police.” Such accounts have drawn greater scrutiny amid turmoil in Beijing’s relationship with Washington. In April, the Justice Department charged 44 people over allegations that they took part in a campaign intended to harass Chinese dissidents in New York and elsewhere in the US. Formed earlier this year, the committee has held a series of hearings on China’s global influence. In a bipartisan report yesterday, the panel recommended raising tariffs on goods from China and further restricting investment in the country. Although Congress has no obligation to accept the recommendations, the report underscored how Republican and Democratic lawmakers alike want to [unwind a relationship]( at the center of global trade even as Biden has sought to stabilize ties with Beijing and Xi. One thing to watch today: The Federal Reserve publishes new projections on inflation, GDP, unemployment and interest rates for the first time since mid-September. [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 A debt crisis is brewing across the developing world as a decade of borrowing catches up with the globe’s poorest countries. These nations, known to rich-world investors as “frontier markets,” will have to repay about $200 billion in bonds and other loans. The [situation is especially grave]( because they have small domestic markets and must turn to global lenders for cash to spend for hospitals, roads, schools and other vital services. And Finally In the high Arctic, the spring is arriving earlier, the fall is coming later, and the summers in between are getting hotter. According to the region’s annual report card, compiled by the US National Oceanic and Atmospheric Administration and released yesterday, 2023 featured the warmest Arctic summer on record, underscoring the [trends that are reshaping the polar region]( as the planet heats up from human-induced climate change. The result is less sea ice, more rain and warmer sea surface temperatures, all with unpredictable consequences for the planet. A river on Svalbard archipelago in northern Norway on Sept. 13. Photographer: Viken Kantaric/AFP/Getty Images More from Bloomberg - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Check out our [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 - 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](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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