Client Alert: COP27 Final Update
This weekend, the COP27 Summit in Sharm El-Sheikh Egypt ended with a widely anticipated Agreement brokered by the Egyptian Minister of Foreign Affairs Sameh Shoukry. Despite initial optimism, I think COP27 was a failure.
The agreement made no progress on emissions-cutting measures that could avert even worse climate disasters
There was no call for the world to burn less oil or use fewer fossil fuels, a goal desired by most wealthy countries but resisted by a few key Gulf Nations
The agreement did not ratchet up the level of ambition for securing more emissions cuts on a faster timeline than was contained in the Glasgow Accord last year
But there was an agreement to create a fund for climate-related damage as part of a broader agreement. This was a goal of poorer nations, who sought a degree of climate justice. While this fund earmarks money for what is known as “loss and damage” it didn’t lay out who will pay in (or the formula for doing so) or how countries can request project funding. This level of detail was reserved to a transitional committee that is yet to be formed.
Typically project financing addresses both the source and use of funds which was not the case here. Another key issue is that much of the funding is expected to go towards resilience and adaption rather than greenhouse gas mitigation, i.e. renewables. While I recognize we need to help countries adapt, the lack of focus on mitigating greenhouse gases at the most basic level is stupefying. Remember when people talk about limiting temperature increases to 1.5C it isn’t as a target but rather a limit.
I will reiterate how little COP27 focused on the built environment which was a key area of focus at COP26….the good news here is that countries around the world and cities in the US have stepped into the gap and are aggressively addressing this issue with regulation, benchmarking and penalties. The fact that 200+ countries can agree on anything is remarkable but so much more needs to be done. COP28 will be hosted by the UAE and it remains to be seen how they will focus the meeting next year.
Other reasons to be optimistic include Brazil’s being back in the climate action tent, with President-elect Da Silva promising zero deforestation by 2030
As always , please let me know if you have any questions and have a good Thanksgiving.
