G20 & COP26: What Happened?
November 2021 will definitely be remembered as an incredibly important month for the UK on the world stage and one where the future of the planet has been on the line.
At the G20, Russia and China were notably not in the room, but joined virtually which did lead to questions about their commitments to the upcoming conference on the climate in Glasgow as well as other pressing issues ahead of the world’s most advance economies. Although the summit was relatively uneventful in terms of announcements, we did see the Group of 20 commit to the Global tax rate of 15% for the world’s largest companies. There was little commitment on the Climate but this would change when the world’s leaders flew to Glasgow for the start of the COP summit.
Over 120 world leaders gathered in Glasgow for what was being called the last chance to “keep 1.5 alive” - the maximum amount that any increase in global temperatures should be limited to.
In many areas, the summit achieved some significant declarations and targets from around the world with advances in woodland preservation, adaptation finance and carbon markets.
Some of the key outcomes from the COP 26 agreements are as follows:
Coal and fossil fuels – Agreement asks countries to “accelerate efforts towards” phasing down “unabated coal power” and calls for an end to “inefficient” fossil fuel subsidies, although without a timescale. Clause “recognises” the need to support workers in those sectors to find other jobs. Eleventh-hour drama saw India and China water down the coal wording from “phase out” to “phase down.”
Mitigation – By the end of next year, countries are requested to improve their 2030 national climate targets. Pledges now put the world on course for between 2.5C and 2.7C of warming by the end of the century, far from the Paris climate accord goals, which aim to limit global warming to well below 2C, ideally 1.5C, since pre-industrial times.
Adaptation – Rich nations are asked to “at least double” their support for adaptation measures, which will help developing countries prepare for climate change, by 2025, compared to 2019 levels. This would imply that adaptation funding could be around $40bn annually, from $20bn in 2019.
Loss and damage – Countries looking for payments to help them cope with the effects of climate change are to start a “dialogue” about funding a new organisation to give them support. This UN body will be dedicated to providing vulnerable nations with “technical assistance.” A standalone fund to pay for loss and damage was proposed by developing countries but rejected by rich nations including US, Europe and Australia.
Climate finance – The agreement notes with “deep regret” that rich countries missed their 2020 target of providing $100bn a year to help developing countries, and commits them to raise at least that amount, annually, through to 2025.
Carbon markets – Negotiators closed a deal setting rules for carbon markets, potentially unlocking trillions of dollars for protecting forests, building renewable energy facilities and other projects to combat climate change. The final deal adopted by nearly 200 countries will implement Article 6 of the 2015 Paris Agreement, allowing countries to partially meet their climate targets by buying offset credits representing emission cuts by others.
Although the UK remains COP President until November 2022, all eyes will now be on Egypt who will become the next hosts of the summit.
(Image Courtesy of COP26/Cabinet Office here)
