The deal was backed by 198 countries at the United Nations climate summit in Dubai following marathon negotiations and uncertainty over whether fossil fuels would even be mentioned in the final agreement.
The deal to "transition away from fossil fuels" represents the first time oil, coal and gas have been mentioned in COP agreements since the annual summits began almost 30 years ago.
ADOPTED: With an unprecedented reference to transitioning away from all fossil fuels, The UAE Consensus is delivering a paradigm shift that has the potential to redefine our economies.— COP28 UAE (@COP28_UAE) #COP28 #UniteActDeliver pic.twitter.com/XImRxXnl4CDecember 13, 2023
However, there was still criticism the agreement stopped short of calling for fossil fuels to be phased out.
Climate Council chief executive Amanda McKenzie said the agreement, which also urged countries to triple global renewable energy capacity, was significant.
"This is a huge moment," she said.
"For the first time, nations have collectively agreed to tackle pollution - from burning coal, oil and gas - that is overheating our planet and harming people all over the world.
"This is the death knell for fossil fuels.
"This agreement sets us on a clear path to embrace clean energy technology like wind, solar and batteries, and move beyond fossil fuels."
Greenpeace Australia Pacific chief executive David Ritter welcomed the agreement but said Australia needed to step up to cut its use of fossil fuels.
Greens leader Adam Bandt has welcomed the COP28 agreement but says it doesn't go far enough. (Mick Tsikas/AAP PHOTOS)
"While this isn't what we hoped for, the text sends a clear message that there is an overwhelming momentum to end the fossil fuel era," he said.
"Now we need developed countries to take the lead - to transition their economies in a way that is fast, fair and places justice at its core - and to offer financial support to the most climate-vulnerable nations."
Greens leader Adam Bandt said the statement from the summit did not go far enough but said the message for the federal government was clear.
"The weak word salad from the global climate summit proves one thing - Australia can't wait for other countries before stopping new coal and gas mines," he said on social media platform X.
"Limiting global heating to 1.5C means no new coal and gas at a minimum, yet Labor still wants more and the other petro-states do too."
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