Agenda: Discussion with members on the overall conclusions from COP 27, and member perspectives from what the talks mean for tech businesses. CGI, Microfocus and the CBI are confirmed to speak, looking for one more.

COP 27 outcomes (thanks to the ICC for providing some of the analysis)

  • The final outcome is the Sharm el-Sheikh Implementation Plan with several decisions, the creation (though no initial money) of a loss and damage fund, a mitigation work programme, the Global Goal on Adaptation, further guidance on Article 6 of the Paris Agreement on international carbon markets and overarching “cover decisions” – the high-level political section of the COP.
  • Negotiations went will into extra time on Sunday  morning with several countries breaching their own red lines. The COP 27 President Sameh Shoukry noted that the outcome “is both a delicate balance and a manifestation of the highest ambition that can be reached at this point” when it comes to implementing targets/promised made in the Paris Agreement.
  • The ICC act as the primary engagement vehicle for business and industry, with a final statement  at the Closing Plenary. The statement from ICC Secretary General John W.H. Denton AO can be found here.
  • Some of the key outcomes are:
    • Progress on adaptation. This included new pledges totalling more than $230mn to the adaptation fund. The SCF was asked to report on doubling adaptation finance for consideration at COP28.
    • Cost of moving to a “low-carbon economy”. The Sharm el-Sheikh implementation plan stated that this would require investments of “at least $4 to $6tn a year”.
    • $100bn pledge. The implementation plan expressed “serious concern” that the goal to jointly mobilise $100bn per year by 2020 had not been met. It urged developed country parties to meet the goal.
    • Climate finance. Deliberations on setting a new ‘collective quantified goal on climate finance’ in 2024, “taking into account the needs and priorities of developing countries”, continued at COP27.
    • Global stocktake. Delegates at COP27 concluded the second technical dialogue on the first global stocktake, “a mechanism to raise ambition under the Paris Agreement”
  • Additional ideas such as ending the expansion of new fossil fuel production and phasing out, or phasing down, oil and gas extraction were mentioned by numerous countries, but others didn’t want reference to any new mandates that may renegotiate or reinterpret the Paris Agreement. 
  • The final cover decision text (COP and CMP) was agreed in the closing plenary on Sunday morning. Overall, the agreed text reaffirms agreement made in Glasgow, with countries’ commitment to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels and reusing language on phasing down coal.
  • Finance and ‘loss and damage’ elements (credit to the ICC for these bulletpoints):
    •  India/Australia led discussions on finance, particularly the new collective quantified goal (NCQG) and saw some progress during week 2  and agreements were made on long-term finance and the NCQG. Please also refer to the sections on finance and adaptation in the cover decision.  
    • The question of whether to establish a new fund for loss and damage or scaling up and building on existing arrangements had proved to be one of the most divisive ones at this COP.
    • In a Stocktaking Plenary on Thursday, the EU said it was ready to support the establishment of a fund for the “most vulnerable” countries, taking a bridge builder role between blocks of Parties. In the EU’s view, the fund needs to be part of a “mosaic of solutions”, include funding countries that have the necessary resources to contribute and most importantly needs to be packed by a strong outcome on mitigation, to keep a clear focus on the 1.5 goal, as these are “two sides of the same coin”.
    • Parties finally adopted a decision during the closing Plenary to establish “new funding arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of climate change”, including the creation of a fund, in the context of establishing the new funding arrangements, for responding to loss and damage, whose mandate includes a focus on addressing loss and damage. A Transitional Committee was also settled, to make recommendations on elements for the operationalisation of the new funding arrangements, to be considered and adopted at COP28 next year.
  • Carbon markets:
    • Negotiations on Article 6 (cooperative market and non-market approaches) continued to set the rules for future market and non-market-based mechanisms.
    • Final decision texts covering three important issues under Article 6 – two mechanisms that enable the effective functioning on international carbon markets – Article 6.2 (to be published here) and Article 6.4 – and a third one based on non-market approaches – Article 6.8 (to be published here) were adopted.
  • On mitigation the negotiators found landing zones on  reassurance regarding mitigation ambition and the nationally determined nature of NDCs; a time frame until 2030; and a proposal for three decisions throughout the period which fit within the Global Stocktake cycle. The final decision text is here.
  • Adaptation was a key theme (as a result of this being ‘the African COP’) and was an important issue for developing countries. In the final decision texts (see Sham el-Sheikh Implementation Plan; Glasgow–Sharm el-Sheikh work programme on the global goal on adaptation to be published here and other decisions related to adaptation and finance), countries recognised the need to scale up efforts on adaptation, including financing – reaffirming the call made in Glasgow for finance from developed countries to be at least doubled in the coming years and recognising as well that Small Islands Development States and Least Developed Countries are particularly vulnerable to the adverse impacts of climate change.
  • The House of Lords Library produced a great summary of the talks, outcomes, next steps and UK implications here.

For more information please contact:

Craig Melson

Craig Melson

Associate Director for Climate, Environment and Sustainability, techUK


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