COP27: A never-ending conference begins to wrap up with uncertain results
Observations and top stories from the second week of COP27
Delegates were scheduled to pack up and head home today. Instead there’s no final agreement and discussions will last into the weekend. But with the conference over, we take stock of the legacy of the conference.
Here are five points, followed by some of the more interesting pieces to come out of Egypt. We also have analysis of trends that broke through on social media.
1. An all-encompassing, but ineffective deal
A deal is emerging, but it’s increasingly clear it’s too broad to be effective. The WSJ says “It is, in essence, a laundry list of ideas with lots of internal contradictions, making negotiations a formidable challenge.”
2. Trust and cooperation between the rich and poor nations are at an all-time low
U.N. chief Antonio Guterres emphasised compensation and protection for poor nations in his closing speech. Several models are available around ‘loss and damage’ funding, but no consensus.
3. Things are just going to take a little longer
Negotiators report progress – slow progress. There is some movement on how carbon markets can be used by countries to partly achieve their net zero pledges – but these discussions will now continue beyond this conference.
4. We’ve seen new nature-based innovative climate finance ideas
Financial markets obviously play a hugely important role in the net zero transition. Its been positive to new innovations come to the table, which build on products such as green bonds, sustainability linked loans and sustainable interest rate swaps. “Debt-for-nature” swap deals have been discussed as a way for developing nations that own much of critically important yet fragile natural ecosystems to get these protected, while reducing their national debt.
5. The US and China seem to be working together on climate, again
One positive development is the US-Sino relations on climate seem to have thawed. At the G20 Summit – half a world away from COP but still important – the countries agree to restart climate talks.
Article 6.2 and 6.4 negotiations
Discussions around the framework of Article 6 are under strain at COP27 – as concerns are mounting the outcome could further undermine the credibility of voluntary carbon markets.
Buyer and seller nations of carbon credits are rushing to develop legislative frameworks, strategies, and work out how best to engage in the Paris Agreement’s Article 6.2 international emissions trade provision, despite negotiations floundering at the UN level during the ongoing COP27 UN summit in Sharm el-Sheikh.
Get the full overview by Cognito here.