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Key Takeaways of COP27
The 27th United Nations Climate Change Conference of Parties (COP27) was held between the 6th and 18th of November in Egypt. World leaders, policymakers and climate delegates from nearly 200 countries attended to review the progress made by countries since the Paris Agreement.
Key Highlights from
- COP27 was positioned as the “Implementation COP” whereby outcomes are primarily focused on work programmes to mitigate and adapt to climate change
- COP27 made the landmark agreement to establish a loss and damage fund –a financing facility to finance developing countries most vulnerable to climate disasters
- COP27 reaffirmed the global ambition to lower global warming to 1.5C and to phase down coal. The inclusion of “low emissions energy” text alongside renewables suggests openness towards natural gas or coal with carbon capture and storage
- COP27 saw some Parties, such as the EU and Turkey, revise Nationally Determined Contributions (NDCs) to more ambitious emissions reduction targets
- COP27 saw the establishment of more partnerships and alliances, for example:
- The US, EU and others agreed on Indonesia’s US$20bn Just Energy Transition Partnership to accelerate Indonesia’s phase out of coal use
- China and US agreed to re-engage in climate cooperation after the G20 Leaders’ Summit at Bali during the second week of COP27
- Increased global and investor collaborations to address and halt deforestation
In this article, we discuss key takeaways from
Climate Adaptation – Milestone Fund on Loss and Damage
- “to establish a fund for responding to loss and damage whose mandate includes a focus on addressing loss and damage” and particularly for “assisting developing countries that are particularly vulnerable to the adverse effects of climate change”; and
- “Establish a transitional committee on the operationalisation of the new funding arrangements for responding to loss and damage and the fund”.
Parties also decided on the operational structure of the Santiago Network – an organisation established as part of
Climate Mitigation – Stagnant Ambitions for 1.5°C
The cover decision for this
Nonetheless, we saw the ramp-up of some emissions reduction targets at
The Sharm el-Sheikh Implementation Plan highlights that a global transformation to a low-carbon economy is expected to require investments of at least USD 4-6 trillion a year4. During the first few days of
Beyond climate mitigation and adaptation – carbon markets, deforestation, greenwashing
Other themes that were apparent during
Regarding Article 6 of the Paris Agreement (the rulebook that acknowledges and allows countries to pursue voluntary cooperation, via market mechanisms like carbon trading, to achieve emissions reduction targets as set out in their Nationally Determined Contributions (NDCs)), some progress was made at
Lastly, greenwashing was also a topic that was featured in
The ultimate 1.5C target was reinforced in
The global pressure to decarbonise will remain and will likely only increase over time. Similarly, Asia’s relevance to decarbonisation will also only continue to increase given the region’s dominance in the supply chain for low-carbon technologies as well as the delivery of the region’s own decarbonisation plans.
December 01, 2022
Staying Ahead with Mirae Asset’s Latest Insights
1. Source: HSBC Research, November 2022
2. Source: Climate Home News, November 2022
3. Source: Reuters, November 2022
4. Source: Secretariat of the United Nations Framework Convention on Climate Change, November 2022
5. Source: Carbon Brief, November 2022
6. Source: Daiwa Research, November 2022
7. Source: HSBC Research, November 2022
8. Source: IOSCO, November 2022
9. Source: United Nations, November 2022
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