Lessons learned from COP26

Climate Risk Recruitment

Lessons learned from COP26

COP26 showed there is much work to bring us towards the target of 1.5 degrees Celsius, but plans like the Glasgow Climate Pact can deliver the necessary framework to enable accelerated climate action.

Among the positive developments from the climate, the summit highlighted a clear understanding that fossil fuels need complete phasing out and a planned increase in climate finance and implementing new standards towards carbon credit accounting for carbon markets were critical. Governments worldwide agreed to enhance their national plans as required in time for COP27 in Cairo in 2022. 

Despite the positive pledges, emissions continue to rise, and our time to tackle climate issues is becoming even more critical. Global scientists recommend that to avoid many of the future climate-challenges global emissions would need to drop by 50% by 2030. Reaching this target will require a significant change and implementing several measures to support this transition.

The importance of the US-China Relationship

The US and China represent the biggest emitters worldwide and the most power to transform climate action. There continues to be a certain level of competition and rivalry between the two nations. Industry experts hope that conventional power politics can subside and enable collaboration against the rising threat of climate change. The US and China have a golden opportunity to create a new path for humanity and partner on new and effective climate measures.

Political leaders accepting the reality of climate change

Many politicians and leaders have failed to engage with the costs of inactivity and the necessary political power to deliver climate action. Further transparency and action are critical to implementing decarbonisation plans for countries. Switching the emphasis from the election cycle and popularity in the media towards our future security and well-being is a priority.

Accelerating climate finance measures

There are numerous reasons for increasing climate finance for developing countries. Rising climate finance should be regarded as a moral change and be in the self-interest of developed nations. Climate finance is targeted investments that will reduce more costly future events, including disruption to supply chains and a rising number of climate refugees.

Supporting new market solutions and technology

Markets can foresee a future greatly influenced by carbon emissions. Investors are increasingly looking at climate risks within their analysis, and businesses are transitioning plans away from conventional fossil fuels. According to Bloomberg NEF, over 2 trillion dollars have been invested in green technologies since the Paris Agreement of 2015. The benefits and anticipated growth of green technology are driving further research and development. Decarbonisation combined with digitalisation are key influencers of overall competitiveness, and political leaders are exploring more opportunities for green tech development. Two big plans from the Glasgow climate summit support further commitment towards climate action in business. The Science-Based Targets Initiative (SBTi) has created a standard for delivering net-zero goals in business. With more than 2,000 corporate members, there is the opportunity to generate a global gold standard. The development of the International Sustainability Standards Board (ISSB), is another important measure that provides a baseline for sustainability disclosures.

Rapid changes are happening in markets, but we cannot depend on green technology to quickly replace traditional business models. Government action and collaboration will continue to remain critical. Political leaders will need to focus on partnerships to strengthen the climate agenda. Market-focused methods like carbon pricing are a vital element in driving market changes.

Green development is inevitable, but the climate summit highlighted that everything needs to be accelerated. Corporates and investors need to focus on accountability and short-term actions rather than being consumed with bold targets for the future.

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