ESG Updates

COP 26-Day 12

A new version of COP26 draft is published

As COP26 reaches its end, the focus pivots to the principal draft agreement awaiting the agreement of all 197 parties. The updated draft text is in line with COP26 president Alok Sharma’s previously mentioned concerns regarding the issue of finance, in addition to other matters including fossil fuels and emission deadlines. Subsequently, the new draft:

“Stresses the urgency of increased ambition and action in relation to mitigation, adaptation and finance in this critical decade to address gaps between current efforts and pathways in pursuit of the ultimate objective of the Convention and its long-term global goal;”

“Calls upon the private sector, multilateral development banks and other financial institutions to enhance finance mobilization in order to deliver the scale of resources needed to achieve climate plans, particularly for adaptation, and encourages Parties to continue to explore innovative approaches and instruments for mobilizing finance for adaptation from private sources;”

Urges developed country Parties to urgently scale-up their provision of climate finance for adaptation so as to respond to the needs of developing country Parties;”

Calls upon Parties to accelerate the phasing out of coal and subsidies for fossil fuels;”

“Recognizes that the impacts of climate change will be much lower at the temperature increase of 1.5 °C compared to 2 °C and resolves to pursue efforts to limit the temperature increase to 1.5 °C, recognizing that this requires meaningful and effective action by all Parties in this critical decade on the basis of the best available scientific knowledge.”

The deal must be signed by the final hours of the summit with leaders being encouraged to agree to what is being referred to as the “cover decision”. Overall, the agreement emphasizes many key issues necessary for overcoming climate change and if agreed upon will be a landmark as it would mark the first time a Conference of the Parties climate agreement broaches the topic of coal, oil and gas, the biggest contributors to climate change. All progress will be assessed at COP27 as Egypt is officially set to host the next Conference of Parties, expected to take place from 7-18 November 2022.