November 24, 2022 2 min read
At Alder & Green, we care deeply about the environment and global climate action. With all its implications on our personal lives and values placed on ESG in business, it is essential to understand what agreements are made and how they will effectively trickle down and shape society as we know it.
COP27 closed this Saturday (19/11) as it reached a less than progressive agreement this year on climate action. The final text was agreed 40 hours past the initial deadline, as there was contentious back and forth on including vital details and avoiding any backpedaling on previous agreements.
The final details have emerged and we are here to give a summary of the top-level activity that came out of this years climate conference.
1. Loss & Damage Fund - Considered the most progressive point to have come out of COP27, it is an agreed fund supported by developed countries to provide financial aid to communities and nations most affected by climate catastrophe. Details around the who contributes how much and when have yet to be established, however it considers how climate change unfortunately affects lesser-economically developed countries.
2. 1.5C - The Paris Agreement identified that rising temperatures should be kept below 2C and to a maximum rise of 1.5C. Backpedaling took place as nations tried to eliminate the temperature agreement from the text, given current temperature projections for the future. This was included in the final text, however the resolution to cause peak emissions by 2025 was taken out.
3. Fossil Fuels - The agreement to phase down the use of all unabated coal was the resolution reached on Saturday. India and other nations suggested phasing down the use of all fossil fuels, however it fell through and the agreement was centred on the use of coal.
4. Adaptation - The UN is hoping to focus on early climate-warning systems that can help alert communities and individuals. There is a clear importance on building defences in countries particularly vulnerable. Developed nations had previously agreed in 2009 that $100bn would be donated annually from public and private sectors to the developing world by 2020. This has so far been unmet and was reinstated in the COP27 text. This however undermines the new 'Loss and Damage Fund,' as the $100bn never materialised.
5. Gas - The final text referenced the use of 'low-energy emissions,' which was interpreted as a nod to the use of gas over other fossil fuels such as coal. As gas emits less emissions compared to its counterpart, alongside the fact that many gas-reserve countries in attendance were trying to strike lucrative deals it can be seen that gas will be preferential.
It is evident that this years COP fell short of making innovative progress, showing the current challenges we face in reaching previously agreed targets. It is also clear that an emerging opportunity for private investment and emerging startups to focus on climate-solution technology has arrived. It is important that we all find ways to consider and urge our governments to move towards phasing out the use of unsustainable energy resources and move towards renewable power sources. We can continue to support businesses with transparency and a commitment to better practices.
Comments will be approved before showing up.