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COP26: Adoption, Loss and Damage Day, 8 November 2021

  • Global
  • ESG
  • ESG - Sustainable Finance
  • Financial services and markets regulation - ESG
  • Energy and infrastructure - Clean energy

09-11-2021

COP26 General

Key announcement

First draft of COP26 final decision published

A first draft of the Glasgow final decision text at COP26 has been published ahead of the conference wrapping up this week.

The first draft has been highly criticised by activists due to its failure to mention the phasing out of fossil fuels.

Negotiators at COP26 have five days left to reach an agreement on how countries will deal with climate change and many activists are hoping the second draft of the decision text will be more aligned with discussions during COP26.

Jennifer Morgan (Executive Director of Greenpeace International) has said: “To keep 1.5 alive, four words must be added: ‘fossil fuels phase out’, and countries must come back next year to close the gap.” 

Adaptation, Loss and Damage

Key announcements and pledges:

World to be ‘climate resilient’ by 2030

The UK announced funding of £290 million to support global efforts of becoming resilient to the impact of climate change within the next 10 years.

The £290 million is to be distributed as follows:

  • £274 million for the Climate Action for a Resilient Asia (‘CARA’) programme to help Indo-Pacific countries mobilise climate finance, strengthen water security, conserve ecosystems, and help vulnerable communities lead local adaptation efforts.

  • £15 million for the global Adaptation Fund which backs developing countries to lead action in line with their priorities.

  • £1 million to the Start Network Start Financing Facility to help deliver faster, more efficient and effective global humanitarian action, including in response to climate impacts.

This is in addition to the funding support of approximately £50 million announced in the first week of COP26 to help small island states develop resilient infrastructure to withstand climate shocks and support capacity-building for their access to funding and technical solutions.

UK publishes discussion paper

The discussion paper published yesterday [08 November 2021] titled: ‘UK action to support countries to avert, minimise and address the risk of loss and damage from climate change’ outlines practical responses to minimise loss and damage from climate change and sets out proposed action points to strengthen efforts on loss and damage.

New announcements made at COP26 on Adaption, Loss and Damage Day

A short list of announcements made yesterday [08 November 2021] on how nations are coming together to support adaption and resilience to the impacts of climate change.

Developed countries ‘pushing back’ on paying for climate loss

Developed nations are said to be resisting any commitments in relation to paying for climate loss and damage on the basis that if they accept liability there is a risk of being sued.

Le-Anne Roper (lead negotiator on loss and damage for the Alliance of Small Island States) wants a new finance goal just for loss and damage.

This would be separate from the $100 billion (£74 billion) already pledged - a target the world has already missed for 2020 which is now set for 2023.

Energy

UK and India reveal transnational solar panel network initiative plans

The British and Indian governments propose to lead an initiative called the ‘Green Grids Initiative One Sun One World One Grid’, which aims to connect 140 nations with a supply of uninterrupted renewable energy.

The British and Indian governments revealed plans to launch the transnational network of solar power grids. The project will be executed by the International Solar Alliance (‘ISA’) alongside the World Bank Group.

The project will involve installing solar panels in regions that benefit from sunlight and ensuring that the electricity produced reaches countries most in need by mini-grids and off-grid solutions.

ISA hopes to mobilise a funding of $1 trillion (£737 billion) by 2030 to assist developing nations in expanding their solar power grids to meet their energy access, energy security, and energy transition requirements.

In the first phase, the project will aim to connect the Middle East, South Asia, and Southeast Asia.

In the second phase, the focus will be on African pools of energy.

In the third phase, the initiative will focus on building the global green grid interconnections.

The announcement of the project was accompanied by the One Sun declaration, which was endorsed by 80 member countries of the ISA.

Fashion industry pledges to achieve net-zero emissions by 2050

The renewed Fashion Industry Charter for Climate Action (the ‘Charter’) was announced on Adaption, Loss and Damage Day at COP26.

Around 130 companies and 41 supporting organisations have signed the Charter, including Nike, PUMA, Adidas, Burberry, Chanel and H&M Group.

The purpose of the Charter is to commit the fashion industry to net zero emissions by 2050 aligning with the Paris Agreement goal to keep global warming below 1.5 degrees Celsius.

Noteworthy commitments under the updated Charter include:

  • Setting a science-based emissions reduction target or halving emissions by 2030, with a pledge to achieve net-zero emissions by 2050.

  • Sourcing 100% of electricity from renewable sources by 2030.

  • Sourcing of environmentally friendly raw materials:

    Textile Exchange requested a trade policy at COP26 to incentivise the use of environmentally friendly material by granting preferential tariffs on material like recycled fibre and organic cotton.

    Over 50 brands, suppliers, retailers, NGOs and industry associations are supporting the request to government for the trade policy.

    Should the policy be implemented it could be a ground-breaking use of legislation to level the playing field for fashion and textile companies looking to lower their environmental impacts.

  • Phasing out coal from the supply chain by 2030.

Agriculture

Leading banking institutions join forces in new initiative to support decarbonization of the agriculture sector

Yesterday [08 November 2021] at COP26, the World Business Council for Sustainable Development announced the Banking for Impact on Climate in Agriculture initiative.

The new initiative aims to bring co-operation between banks with agriculture business portfolios to develop technical data-solutions to support themselves and their clients to align their financial portfolios in the food, agriculture, and land use space towards reducing emissions and achieving a net zero.

Banks that have already signed on include Rabobank, Santander and Barclays, along with support from the Wells Fargo Foundation.