“Demonstrate a transformational shift to implementation of the Paris Agreement by putting negotiations into concrete actions,” “Cement progress on the critical workstreams: mitigation, adaptation, finance, and loss and damage”, and “Enhance delivery of the principles of transparency and accountability throughout the UN Climate Change process” were the three critical areas of action that Simon Stiell, the new Executive Secretary of the UN Climate Convention (UNFCCC) highlighted during the opening plenary of COP27 in Egypt. 

Eight (+ 1 extra) days and numerous discussions, workshops, meetings and compromises later, COP27, which had brought together over 35,000 people, including representatives from governments, industry, finance and civil society groups, created an historic moment by announcing the long-demanded and long-debated funding arrangement on loss and damage, with developed countries for the first time in 30 years of climate talks agreeing to offer finance to help poorer countries tackle the impact of climate-related disasters.

After having supported COP26 in Glasgow last year as principal financial sponsor, NatWest also travelled with a strong contingent – including NatWest Markets’ CEO, Robert Begbie, and Head of Climate and ESG Capital Markets, Caroline Haas – to COP27, sponsoring the UK pavilion, hosting a number of events (which you will read about later in this article) as well as working closely with the Sustainable Markets Initiative (SMI). 

Here are the key takeaways from our COP27 team for each of the days: 

When the action kicked off, six themes began to develop:

1.    The importance of playing “offensive”: There is no time to waste – governments, companies and financial institutions need to be bold and increase their risk appetite to accelerate the movement of capital to build the required infrastructure for a zero-carbon world. While the commitment from the Glasgow Financial Alliance for Net Zero (GFANZ) had been increased from $130 trillion to $150 trillion over the past 12 months, it has become clear that this needs to be further ramped up to meet the required quadrupling spend for renewable energy infrastructure. This will continue to spotlight public private partnerships and concessional capital to make solutions more scalable.

2.    The increased attention on supply chains: The interdependencies of companies and products is gaining traction as Scope 3 comes into focus for reporting and emission footprint measuring purposes. The days of turning a blind eye to the production of one’s materials will be difficult to circumvent with the growing requirements of credible transition plans. These responsibilities do not only consider carbon or the operational impact but also the wider effect on communities, employees and consumers. As one panellist said: “The current model was not sustainable, and these efforts will lead to much more valuable supply chains.” As a consequence, companies need to consider their role within the whole ecosystem and not solely their niche product.

3.    The creation of new technologies:  Given the urgency for change and energy security, there is a buzz around the opportunities that the energy crisis has created, which is driving more capital to the development and testing of new technologies – nearly $12 trillion of opportunities, according to McKinsey. In focus during the discussions was hydrogen – its scalability and its uses in hard to abate sectors. Also in the spotlight: Direct Air Capture (DAC); although capital flows to this new technology are still limited, it is not considered ‘Sci Fi’ any longer, and sovereign wealth funds with deep pockets are turning their attention to provide support. 

4.    Leapfrogging technologies in the developing economies: Similar to mobile technology, which circumvented laying fixed lines throughout Africa, there are plans to move directly into renewable energy versus ‘transitioning’ through the alternatives. Legacy industries in the developed world need to be altered and transitioned, which is not always the case in developing countries where one can ‘leapfrog’ industrial development to drive economic growth.

5.    The growing focus on credible transition plans: The Task Force on Climate-Related Financial Disclosures (TCFD) is gaining regulatory focus globally, as well as GFANZ for the financial services industry. Meanwhile, countries are starting to detail their transition plans. A country example: The UK’s Transition Plan Taskforce, launched in April this year, will draft a new framework and toolbox, which will provide strategic and rounded guidance to prepare the real economy for its transition. The consultation will be open until 28^th February 2023, and its outcomes will guide the ongoing work into 2023, which could include sectoral specifics. NatWest’s Head of Climate Change, James Close, recently highlighted NatWest’s viewpoint: “NatWest votes to include climate transition plans in its “Say On Climate” resolution at this year’s annual general meeting (AGM). We’ve been working hard to produce it for publication next year. At the same time, we’ve been working with the UK Transition Planning Taskforce and GFANZ, for whom Alison Rose co-chairs the Real Economy Transition Planning workstream. We believe that good quality, standardised transition plans are a central part of the transition to net zero. Our climate transition plan will drive our strategy and we will use it to persuade shareholders that our commitments can be delivered in a way which is consistent with their expectations. We will also use the transition plans of our customers to guide our lending.” 

Loss and Damage, and climate finance:

• Imbalance of pledges and needs: While COP27 reached an historic agreement on a Loss and Damage fund on the ninth (extra) day, discussions about the fund kicked off with leaders of climate-vulnerable countries advocating for measures to compensate for damage already being wrought by global warming. The imbalance between the volume of country pledges – Austria pledged $50 million over the next four years, while Belgium, Denmark, Germany, and Scotland had also committed small amounts of loss and damage funding – and the capital required to deal with climate change dominated the discussions.  
• Finance for Climate Action: The Independent High-Level Expert Group on Climate Finance, published a report on “Finance for Climate Action:  scaling up investment for climate and development” at the request of the Egyptian Presidency of COP27 and UK presidency of COP26. The key messages focused on the transformation of global economies, particularly the energy systems, and the US$1 trillion per year investment needed from external finance by 2030 for the emerging markets and developing countries (excl. China). The report calls out the just transition and considers the full ecosystem: net zero, adaptation, resilience, and natural capital. To support need, the report predicts tripling of annual flows from multilateral development banks (MDBs) and other development finance institutions (DFIs) in the next five years.
• US midterm election won’t disrupt climate plans: US Special Presidential Envoy for Climate John Kerry vowed that Joe Biden’s administration will press ahead on climate action regardless of the outcome of the US midterm elections. Over the past six years, the US has developed a resilient system built on collaboration with state governments and the private sector to keep the climate agenda moving forward while mobilising capital and raising awareness at the local level. 
• UK joins global alliance for offshore wind and commits £11.6 billion for international climate finance: Belgium, Colombia, Germany, Ireland, Japan, the Netherlands, Norway, the UK, and the US announced that they have joined the Global Offshore Wind Alliance (GOWA) to remove barriers to the development of offshore wind. The UK also claimed that it would be tripling funding for climate adaptation, from £500 million in 2019 to £1.5 billion in 2025 as part of a broader commitment of spending £11.6 billion on international climate finance.

Natural Capital

• Urgent action on climate change needed, and forest partnerships: Ursula von der Leyen, the president of the European Commission, called for countries to hasten action on climate change and urged the global north to follow in the EU’s footsteps. Von der Leyen signed a memorandum of understanding to help preserve forests in Guyana, Mongolia, the Republic of Congo, Uganda and Zambia through a Forest Partnership.
• Nature provides opportunities, and challenges are being addressed: While climate risk has become a key factor in business decisions, the understanding of nature capital’s importance is still lagging behind but gradually moving into focus. It is important to note that $44 trillion of output is dependent on nature – therefore our natural capital cannot be ignored, especially given the role of supply chains and the underlying raw materials.
• The Taskforce on Nature-related Financial Disclosures (TNFD) published its report on nature-related scenario analysis: This will help support corporates and financial institutions assess nature-related risks and opportunities, highlighting the interdependencies of products, companies and nature that need to be taken into consideration. While one of the challenges faced in the sustainable finance market is the lack of available and actionable ESG data, there is a lot of nature-based data available, obtained by satellites – the challenge lies in making the information decision-making friendly.  While risk management tools are being developed, there is a growing focus on highlighting the opportunities through financing solutions, such as conservation and blue bonds.

Agriculture:

• Scaling regenerative farming: So far, regenerative farming is not scaling – the reasons:  the short-term economic case is not compelling enough for the average farmer, there is a knowledge gap in how to implement regenerative farming, and drivers in the value chain aren’t aligned to encourage regenerative farming. To solve these issues and help scale sustainable farming NatWest hosted an event with the Sustainable Markets Initiative (SMI) following the SMI’s Agribusiness Task Force publishing: “Scaling Regenerative Farming: An Action Plan”.
• US support for climate smart food systems in Africa: US representatives updated on the country’s $100 million adaptation funding in 2022 to help countries and communities adapt their food systems to climate impacts. USAID invested more than $300 million in Resilient Food Security Activities across Africa that supports agricultural development and food security. Feed the Future expanded to eight additional African countries, and the new Global Food Security Strategy further elevated inclusive and climate-resilient food systems.  These efforts are yielding results.  For example, in 2022, in partnership with the Bill and Melinda Gates Foundation and the Foundation for Food & Agriculture Research, climate-resilient maize varieties were planted on seven million hectares across 13 African countries.  These heat, drought, and flood resistant maize varieties provided a 25% yield advantage, benefiting more than 44 million people.

The third day, Finance Day, focused on the transition as well as on mobilising capital, particularly for the emerging markets:

• Countries step up their commitments to fight climate change: China would be willing to support a mechanism for compensating poorer countries for losses and damage caused by climate change, said its climate envoy Xie Zhenhua. Xie added that China had no obligation to participate but stressed his solidarity with those calling for more action from wealthy nations on the issue and outlined the damage China had suffered from climate-linked weather extremes. The UK announced that it will triple its commitment to climate adaptation projects across Africa to £1.5 billion, making it one of the biggest contributors to the Africa Adaptation Acceleration Program. France and Germany extend €600 million in financing to support South Africa’s transition from coal. The financing agreements were acknowledged and welcomed by Cyril Ramaphosa, President of the Republic of South Africa.
• Spotlight on blended climate finance: The Network for Greening the Financial System (NGFS) announced the launch of a blended climate finance initiative, with the focus on unlocking more capital for green and transition projects in emerging markets. Key deliverables will be to publish a blended finance handbook and facilitate demonstration projects, which will be led by the International Monetary Fund (IMF) and completed by COP28 in November 2023. Ravi Menon from the Monetary Authority of Singapore and chair of the NGFS, said: “We need to improve the risk-reward ratio for marginally bankable transition projects to attract private capital. This can be done through catalytic and concessional funding from the public sector and philanthropic sources to crowd-in multiples of private capital.”
• Net Zero Banking Alliance (NZBA) calls for banks to plug gaps in targets: A number of financial sector alliances (GFANZ, Net Zero Asset Managers initiative (NZAM), Net Zero Asset Owner Alliance (NZAOA), NZBA, Paris Aligned Asset Owners initiative (PAAO)) announced progress reports on their members’ transition plans and interim transition targets. Notably, GFANZ released a report offering guidance for members regarding the development of net-zero transition plans for financial institutions. After NZBA’s first progress report, gaps were revealed in key areas of target-setting – therefore NZBA has called for accelerated action of its bank members.
• ISSB forms a partnership framework for capacity building: International Sustainability Standards Board (ISSB) launched a partnership framework for capacity building agreement with 20 public and private organisations with a particular emphasis on emerging economies and smaller entities. The ISSB also announced it will continue its collaboration with the European Commission and European Financial Reporting Advisory Group (EFRAG) towards “a shared objective to agree as soon as practicable a framework for maximising interoperability of their standards and aligning on key climate disclosures”. Meanwhile, CDP said it will incorporate the IFRS S2 Climate-related Disclosure requirements into its global environmental disclosure platform, resulting in CDP’s 18,700 voluntary users aligning to IFRS S2 in the 2024 disclosure cycle.
• SMEs could harness a £175 million revenue opportunity in the UK, generating over 260,000 new jobs by 2030: NatWest’s Springboard Report was launched in the UK Pavilion with Lord Stern, Peter Hill (COP26 CEO), Peter Cashion (IFC Director of Investment), Peter Mannion (McKinsey) and James Close (NatWest’s Head of Climate Change), with discussion centred around the importance of SMEs in the transition to net zero. The report highlighted targets that offer an opportunity for UK businesses to access other markets with low-carbon goods and services – with the investment required to decarbonise Europe in the next ten years around five times that required in the UK. The report also focuses on decarbonisation tools that can create cost savings.
• Building resilience for countries hit by natural disasters: Vulnerable countries hit by hurricanes and other climate catastrophes are set to be able to defer debt repayments, freeing up resources to fund disaster relief, as part of new UK-led initiatives unveiled at COP27 to support the Loss and Damage agenda. UK Export Finance has become the first export credit agency to offer its own direct lending to low-income countries and small island developing states. In his speech, Treasury Minister James Cartlidge announced the publication of key design principles which will underpin the Climate Resilient Debt Clauses for use in private sector lending, and called for creditors, including banks, other bilateral lenders and international financial institutions to explore adopting these clauses.
• African insurers take up climate change fight and combat the physical climate risk: Signatories to the Nairobi Declaration on Sustainable Insurance made a financial commitment to underwrite $14 billion of cover for physical climate risks by 2030. In total, the Declaration boasts 85 signatories, including insurers, reinsurers, underwriters and insurance associations from across the African continent support climate adaptation. 
• US climate envoy Kerry launches carbon offset plan: John Kerry announced the creation of a carbon offset plan meant to help developing countries speed their transition away from fossil fuels. Kerry launched the Energy Transition Accelerator (ETA) with the intention of funding renewable energy projects and accelerating clean energy transition in developing countries. “Our intention is to put the carbon market to work to deploy capital to speed the transition from dirty to clean power specifically, to retire unabated coal-fired power and accelerate the buildout of renewables,” he said adding that carbon credits would be “high quality” and meet “strong safeguards”. International Organization of Securities Commissions (IOSCO) has launched a public consultation on recommendations for establishing sound Compliance Carbon Markets (CCMs) and on key considerations for enhancing the resilience and integrity of Voluntary Carbon Markets (VCMs).
• The City of London and COP Egyptian Presidency join forces: The City of London Corporation, in association with the COP Egyptian Presidency announced it will be hosting next year’s Net Zero Delivery Summit focused on financing a “Just Transition”. The Summit will take place in May 2023 at the halfway point between COP27 and COP28, where discussions will focus on how to combat climate change and its negative effects on communities globally, in a fair, inclusive way – particularly in developing economies.

With youth climate activists and practitioners attending from around the world, the fourth day rather focused on science and not so much on youth – instead, discussions around climate finance continued:

Climate finance:

• Accelerating insurance climate adaptation: The UN-backed Race to Resilience campaign has kick-started a new initiative, the Insurance Adaptation Acceleration Campaign, aimed at mobilising half of the global insurance market within 12 months, so they are better prepared to adapt to a world of mounting physical climate impacts.
• World Bank to increase financing to the world’s poorest countries: The World Bank is ready to step up financing to tackle climate change in the world’s poorest countries. The World Bank Group provided $31.7 billion in climate finance to countries in its fiscal year 2022, the highest to date. However, the bank continues to face scrutiny for its record on climate change.
• 50 poor countries in danger of bankruptcy: More than 50 of the poorest developing countries are in danger of defaulting on their debt and becoming effectively bankrupt unless the rich world offers urgent assistance, the head of the UN Development Programme has warned. Without measures to help these countries with debt, they could not get to grips with mitigation and adaptation actions.
• Untapped green investments: The African Union, African Development Bank and Africa50, in collaboration with other global partners, have launched a $10 billion initiative at COP27 to crowd investment into green infrastructure projects. The initiative will focus on impactful projects featuring greater cooperation between governments and private sector actors on a 3-6yr timescale.

Science:

• Insights into climate science to support implementation: Leading global specialists from the natural and social sciences have presented ten essential insights on climate change since 2021. A key focus has been on the limits of humankind to adapt to the inevitable impacts of climate change. UN Climate Change Executive Secretary, Simon Stiell, said: “Science provides the evidence and data on the impacts of climate change, but it also gives us the tools and knowledge as how we need to address it. As the Egyptian COP27 Presidency has made very clear, we are now clearly in the era of implementation, and that means action. But none of this can happen without data, without evidence to inform decisions, or the science that supports programmes and policies.”
• Cleantech affordability push to bring low-carbon technologies to price parity by 2030: The Breakthrough Agenda was first launched at COP26 and has now provided more information on how it aims to deliver affordable low and zero-carbon technologies by the end of the decade. Participants in the initiative agreed they will bring forward policies to end the sale of petrol and diesel cars and other light vehicles by 2040 for developing economies and 2035 for developed economies.
• International action on methane: Following the enhanced focus on methane at COP26, the US and EU plan to unveil a plan to accelerate efforts to reduce emissions of methane from the fossil fuel sector with policies to stop routine venting and flaring of natural gas and requires companies to fix leaks in their infrastructure. They are said to seek support from international actors to help develop international standards on monitoring and reporting.
• Nuclear technology can support climate change adaptation: The International Atomic Energy Agency (IAEA) released a comprehensive report on Nuclear Technologies and Climate Adaptation in Africa, describing how these technologies are already being widely used to build resilience on the continent.
• The importance of a sustainable food system: The UN food agency aims to launch a plan within the year to make the world’s food system more sustainable. The plan would show how the food industry and farming can align with the world’s goal of capping global warming at 1.5°C with the hope of spurring investment into companies, projects and technologies aligned to the plan. Investors are hoping the roadmap will provide guidance on matters such as methane emission limits, and support to ensure a ‘Just Transition’ for farmers, while driving new technological innovations.

• The Breakthrough Agenda moves to action phase: Countries, who have signed up to the Breakthrough Agenda (covering over 50% of global GDP), promise to speed up decarbonisation across five key emitting sectors: power, road transport, steel, hydrogen, and agriculture. This action phase will help provide common standards, direct investment, drive down green premiums, and build alignment across stakeholder groups. In total, there are 25 new collaborative actions for the Breakthrough Agenda participants to deliver before COP28 in Dubai next year.
• Business and civil society reaffirm 1.5°C support: The ‘We Mean Business’ coalition has convened a group of over 200 global corporates and business leaders behind a declaration which states “all in” support to deliver the Paris Agreement. Prominent corporate leaders include Sir Richard Branson, Steve Howard and Arianna Huffington, while corporate signatories include: Nestlé, Mastercard, Unilever and Holcim. The declaration argues that 1.5°C is “a limit not a target”, and that COP27 negotiators should work with the private sector to avert the worst of the climate crisis.
• The Global Carbon Project releases new data: Greenhouse gas emissions are now rising so quickly that it is likely the world will exceed the 1.5°C target in the next nine years. The report from the Global Carbon Project used monthly energy data to estimate that global greenhouse gas emissions will rise by 1% this year, mostly from an increase in flying and the use of coal. This is in stark contrast to what is required: a recent UN report estimated that global emissions need to fall by 45% by 2030 to keep temperatures below 1.5°C.
• Net Zero Guidelines give advice for setting net-zero targets: The International Organisation for Standardisation (ISO) has released its ‘Net Zero Guidelines’, which form a set of principles intended to guide business and governments to the setting of credible net-zero targets. The ISO has stated that the guidelines can be used by “all actors and organisations” of all sizes and calls it a “single core reference text” for any organisation who wishes to create meaningful net zero targets.
• US targets methane: The US Environmental Protection Agency (EPA) has moved to strengthen forthcoming regulations on methane pollution from the oil and gas sector with an updated proposal that would lean more heavily on the industry for the reductions. The EPA will expand its 2021 Methane Rule so that it requires drillers to find and plug leaks at all US well sites. The EPA said the stronger rules will reduce methane from the oil and gas industry by 87% below 2005 levels. This would help the United States to meet its commitment under the Global Methane Pledge to cut methane emissions economy-wide by 30% this decade.
• US federal government to require climate disclosures from contractors: US president Joe Biden’s administration has unveiled major plans to require US federal contractors to disclose their emissions through the CDP, gearing the market towards net zero. The Federal Supplier Climate Risks and Resilience Rule would require major federal contractors to publicly disclose their greenhouse gas emissions and climate-related financial risks as well as set science-based emissions reduction targets.

• Launch of Food and Agriculture for Sustainable Transformation (“FAST”): The FAST programme, announced by the Egypt government and the UN, seeks to transform agriculture and food systems by 2030 towards a 1.5°C temperature pathway through enhancing both flows of climate finance as well as information flows (e.g. sharing best practices, supporting policy making). 
• AIM for Climate: The Agriculture Innovation Mission (AIM) for Climate has doubled its climate investment to $8 billion by 2025. The initiative, set up by the UAE and US, seeks to increase investment into smart and sustainable agricultural systems in Africa. US Secretary of Agriculture Thomas Vilsack sees potential for agriculture to be a faster net zero adopter than some other sectors, and it could provide opportunities around carbon sequestration, methane reduction and the circular economy.
• Nutrition-Climate Initiative Launched: COP and the World Health Organization (WHO) have launched the Initiative on Climate Action and Nutrition (I-CAN) to integrate the global delivery of climate change adaptation and mitigation policy action, and nutrition and sustainable food systems, to support mutually beneficial outcomes. I-CAN will be implemented with the support of UN agencies and partners including the Food and Agriculture Organization (FAO) and the Global Alliance for Improved Nutrition (GAIN).

Water and other climate topics on the day:

• Improved action on water and adaptation: A new partnership has formed between World Meteorological Organisation and Egyptian Presidency centred around embedding water management in national climate adaptation efforts. The initiative sets out three priorities: 1) decreasing water loss and waste and improving water access; 2) collaborating on water-related climate adaptation; and 3) recognising the link between action on water and the delivery of key climate goals as well as the UN’s Sustainable Development Goals.
• Rapid adoption of green hydrogen: Ten organisations signed the Joint Statement on Green Hydrogen and Green Shipping. The signatories of this joint statement, which include some of the largest green hydrogen developers and producers and some of the largest and most influential actors in the maritime value chain,  have agreed to: 1) full decarbonisation of the sector by 2050; 2) having commercially viable zero-emission vessels operating on deep seas from 2030; and 3) providing sizeable shares of the 5.5-million-ton 2030 production target for use by the shipping sector.
• Funding for Climate Risks: The Vulnerable 20 Group of Finance Ministers (V20) and the Group of Seven (G7) launched the Global Shield against Climate Risks, an initiative for pre-arranged financial support designed to be quickly deployed in times of climate disasters. Initial contributions include around €170 million from Germany and more than €40 million from other countries. The first recipients of Global Shield packages include Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal.
• US and China restart climate talks: President Biden and President Xi Jinping of China agreed to restart talks between their countries as part of international climate negotiations. This is seen as a huge breakthrough to tackle climate change globally.
• The importance of preserving biodiversity: Brazil, the Democratic Republic of Congo, and Indonesia have formed a partnership to cooperate on forest preservation. This partnership is crucial to the preservation of biodiversity as these countries are the world’s largest rainforest nations, representing 52% of the world’s tropical rainforest.

Gender equality:

Three asks on gender equality to COP27: Whilst the discussions during the day highlighted the power of women as key drivers of climate solutions, the calls for action lacked concrete agreements or pledges. The Executive Director of UN Women laid out what the COP must deliver to advance gender equality:

1. Take special measures, including quotas, to increase women’s and girls’ full, equal, and meaningful participation and leadership at all levels of decision-making, and to address inequalities including in their access to and control of productive resources such as finance, technology, and land, especially women from poor and marginalised communities.
2. Support a just transition for women through an alternative development model.
3. COP’s decisions on global investments, especially for women and girls in developing countries, should intentionally and directly amplify and foster women’s skills, resilience and knowledge, ensure that women’s organisations, including young women, are supported and protected, and include specific investment to remove critical barriers for women and put protections in place. 

• Billions deployed in renewable energy: Mexico has pledged to deploy a further 30 gigawatts in renewable energy capacity by 2030 and invest some $48 billion in developing renewable energy. The new solar, geothermal, wind and hydroelectric capacity would double Mexico's renewable capabilities.  
• Energy transition away from fossil fuels: A new Indonesia Just Energy Transition Partnership was launched to mobilise $20 billion over the next three to five years. This will help Indonesia pursue an accelerated just energy transition away from fossil fuels and towards renewable sources. The UK stands ready to support delivery of the partnership, including through a $1 billion World Bank guarantee.
• Access to clean energy: A new initiative has been launched for a Just and Affordable Energy Transition in Africa. It sets out three primary objectives to be achieved by 2027: 1) secure access to affordable energy for at least 300 million Africans; 2) transition 300 million people towards clean cooking; and 3) transition towards green energy by increasing the share of renewable electricity generation by 25 percentage points.
• Deployment of renewables and green hydrogen: A new global commission, the ‘Planning for Climate Commission’ has been launched with a focus on speeding up planning and approvals for the massive deployment of renewables and green hydrogen. In addition, Germany is planning to set up two new funds with a total of €550 million to support the development of a global hydrogen economy.
• Clean energy sectors unite: A new Global Renewables Alliance has been launched, combining industry bodies and organisations for wind, solar, hydropower, green hydrogen, energy storage and geothermal sectors. The Alliance will act as a unified voice that represents renewables industries and technologies.
• Increased climate ambition: The European Union plans to update its emission cutting target under the Paris Climate accord, with the upgrade expected before next years’ United Nations summit. The EU has already one the most ambitious climate change policies, having committed to cut its net greenhouse gas emissions 55% by 2030, from 1990 levels, and eliminate them by 2050.

While COP27 had its historic moment, many left disappointed having hoped for an agreement to phase out all fossil fuels, following on from last year’s COP26 Glasgow Climate Pact. In this context UN Secretary-General António Guterres tweeted: “A fund for loss and damage is essential, but it’s not an answer if the climate crisis washes a small island state off the map or turns an entire African country to desert. The world still needs a giant leap on climate ambition.” This requires dialogue and collaboration between governments to further forge alliances, ideally between now and COP28 next year.

A small leap on environmental action could also be achieved at the COP15 Biodiversity Conference in December in Montreal – the conference will convene governments from around the world to agree to a new set of goals for nature over the next decade, further highlighting the interconnectivity of biodiversity and climate. 

For those looking to discuss any of the above further, please reach out to our author Caroline Haas, Head of Climate and ESG Capital Markets.