In this blog post Sara Joslin, member of the IFoA Sustainability Board, runs through the important highlights from the first week at COP27. Her piece includes putting loss and damage on the agenda for the first time and bringing integrity to net zero commitments.
Just over a year ago, I was privileged to attend COP26 in person while on secondment to HM Treasury’s Private Finance Hub. Arguably, one of the key successes of that conference was the unprecedented number, and range, of public and private-sector actors stepping forward with pledges and promises to drive future climate ambition.
One year on and many are referring to COP27 as the ‘implementation COP’. This reflects the hope that it can move beyond the pledges of past summits to identify and enact comprehensive and tangible climate action.
A key outcome from COP26 was the Glasgow Climate Pact. This went further than the 2015 Paris Agreement by formalising the goal of limiting global warming to 1.5°C above pre-industrial levels by 2100 as a necessary target. In Paris it was referenced as an aspirational target. The pact also asked countries to arrive at COP27 with updated nationally determined contributions (NDCs) aligned with a 1.5°C pathway.
Worryingly, however, a new report from UN Environment Programme – released just days before the start of COP27 – warned there’s still `no credible pathway’ to 1.5°C. Even if existing NDCs are implemented in full, temperatures are still set to rise to 2.4°C above pre-industrial levels by 2100, suggests its 2022 Emissions Gap Report.
Opening the conference, UN Secretary-General António Guterres reiterated this sombre message, saying: “The 1.5°C goal is on life support and the machines are rattling. We are getting dangerously close to the point of no return”.
Against that backdrop, global leaders spent the first week in Sharm-El-Sheikh reviewing progress and agreeing plans to raise ambition further. Here are a few highlights from the week.
COP27 is the first time ‘loss and damage’ has been on the COP agenda. Poorer countries, who did little to cause the climate crisis but are heavily exposed to its impacts, are seeking compensation from richer countries that were responsible for large historical emissions.
Momentum has been slowly building. Over the last week, Austria, Belgium, Denmark, Germany, New Zealand, and Scotland have all pledged funding for this purpose, with the hope of more to come.
Announcements so far include the:
In the financial sphere, there were progress updates from many of the finance initiatives set up at COP26. In addition, the US announced a new Energy Transition Accelerator. This aims to accelerate the clean energy transition in developing countries, but has faced mixed reactions due to its reliance on controversial carbon credit trading.
The UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities also released its Integrity Matters report. It outlines practical recommendations to bring integrity to net zero commitments. This aims to reduce ‘greenwashing’, which has often been a criticism of existing financial and business pledges.
This year is also the first time a COP has opened its doors to a Youth-led Climate Forum, alongside a Children and Youth Pavilion, and Youth Envoy. Young people also presented a youth statement that covered 15 themes. This included calls for loss and damage to be permanently on the COP agenda, and for an inclusive approach to climate governance across health, finance, arts, and more.
For more detailed summaries of daily themes and activity see the IFoA Sustainability Early Careers Board commentary on LinkedIn.
In comparison to last year’s COP26 it feels that media attention, at least here in the UK, has been somewhat more muted. There are stories out there but no day-by-day coverage grabbing the headlines. Nevertheless, it has been an eventful week with many notable announcements.
As actuaries it is important to stay on top of these developments, especially progress affecting the financial sector. Our work can influence, and must adapt to, this progress. The increased emphasis on ‘implementation’ (for example, turning pledges into action and tackling greenwashing), will have ramifications for many clients who use our advice.
However, we should also be concerned that with every year that passes our chances of limiting global warming to 1.5°C seem to be fading even further. Turning this around will require significant and co-ordinated global action, both during the remainder of COP27 and beyond. As individuals and a profession, we will need to play our part where possible.
Sara Joslin is an actuary at the Government Actuary’s Department, member of the IFoA Sustainability Board, and co-chair of the IFoA Sustainability Early Careers Board. Find out more about her COP26 experience in her blog piece: How a passion for sustainability put me on the world stage.
This blog post contains personal reflections that do not represent views of her employer or the IFoA.
