Talks during the seventh day of COP 27 focused on water and Action for Climate Empowerment (ACE), a United Nations Framework Convention on Climate Change (UNFCCC) initiative. Here's what business leaders need to know to keep up-to-date on climate policy:
- The United Nations (UN) published a draft text of a loss and damage
finance place for developing countries. The draft document outlines
a two-year process where developed countries will decide how to
provide loss and damage funding. After two years, provider
countries will either establish a funding arrangement, possibly a
UN funding facility, by November 2024, or will delay until 2023 a
decision on what the UNFCCC's role would be in loss and damage
funding.
- Delegates are still negotiating the draft's contents. COP 27 President Sameh Shoukry told the summit that he wanted members to produce a fully developed plan with "meaningful outcomes" by Friday. However, there are some rumors that the event will be extended into the weekend to give parties more time to agree.
- This past weekend, U.S. special climate envoy John Kerry said that the U.S. would not consider such a plan. "This is just not happening," he asserted, pointing to three preexisting funding mechanisms including those he felt already addressed the issue.
- Over the weekend at the Group of 20 (G20) summit, Chinese
President Xi Jinping agreed to resume climate change talks with
President Biden. This comes three months after Jinping halted talks
in protest of Speaker Nancy Pelosi's trip to Taiwan.
- Since the two countries are the world's number one and number two emitters, experts see talks between China and the U.S. as crucial to managing climate change.
- Germany and the Group of Seven (G7) launched the Global Shield initiative to help
developing countries rebound after climate-caused natural
disasters. Germany donated 170 million euros to the facility, which
will go towards strengthening social protection schedules and
climate risk insurance.
- While some groups have praised the initiative, others have expressed worry about its feasibility or are concerned that it could detract from loss and damage funding. German officials say that they see the program as a complement to loss and damage talks.
- Pakistan, Ghana and Bangladesh will reportedly be the first recipients of funding from the new program.
- Delegates have not made much progress on developing an
international carbon market under Article Six, with plan drafts
reportedly riddled with blank spaces. Already, countries agreed to
delay deciding on what types of projects can produce carbon credits
under Article Six until 2023.
- However, experts say that Tawain, who is not a UN member, could be included in the market through the use of Internationally Transferable Mitigation Outcomes (ITMOs) to offset their emissions.
- Brazil, Indonesia and the Democratic Republic of Congo, the host countries of three of the biggest rainforests in the world, formed a strategic alliance to coordinate their rainforest protection efforts. They released a joint statement calling for payments from developed countries to reduce deforestation and preserve biodiversity.
- The newest edition of the Climate Change Performance Index
(CCPI), CCPI 2023, was released. The report ranks the 59 largest
emitters worldwide. Chile, Morocco, India and Scandinavian
countries led the pack in emissions reductions.
- This comes as India approved a new national climate plan that features a 2070 net zero goal.
- European Union (EU) chief Frans Timmerman promoted hydrogen as a way for Africa to make
its green transition as an EU-hosted side event.
- He said, "Hydrogen can be used for difficult-to-abate sectors, it is a good way to store energy and it can change the whole architecture of the energy system."
- Several large clothing retailers announced that they will purchase over half a million tons of low-carbon alternative fibers for their products to reduce global emissions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
