With COP27, the UN climate summit, now underway – follow our blog for the latest developments and our investors’ perspectives.
The United Nations’ climate conference COP27 is set to take place in Egypt this November. Lisa Sizeland in Schroders’ global content team has summarised This block is deleted,Remove this placeholder.
This block is deleted,Remove this placeholderThis block is deleted,Remove this placeholderThis block is deleted,Remove this placeholderWith just over a week to go until COP27 begins in Sharm El Sheikh, a UN report has highlighted that much more needs to be done to cut harmful emissions. The UN's Emissions Gap Report 2022 said "the international community is falling far short of the Paris goals, with no credible pathway to 1.5°C in place."
This block is deleted,Remove this placeholderYumna Yusuf, Engagement Associate – Climate, said: “Unlike previous COPs, which have focused heavily on climate mitigation, a key priority of the COP27 Presidency is to ramp up global efforts on adaptation and resilience and place this at the forefront of the climate action agenda.
However, there are doubts that COP27 will make significant progress. Andy Howard, Global Head of Sustainable Investment, said: “In practice, I am not expecting huge things from COP27. It seems very improbable that major steps forward or statements of intent will be announced in the current political context.”
24 October: What will be on the agenda at COP27?
With two weeks to go until COP27 gets under way in Egypt, Schroders’ Environmental Economist Irene Lauro looks at what’s likely to be discussed. Issues such as adaptation, climate finance, and loss and damage are high on the agenda. Read her full article here: An environmental economist's take on COP27
Irene said: “COP27 has been framed as an implementation summit. This means COP conversations are not likely to be centred around new mitigation measures to reduce emissions, but rather on how to implement climate actions in order to fully operationalise the Paris Agreement.
“Adaptation, how to prepare for the increasing impacts of a changing climate, is a key issue, especially for developing countries. Meanwhile, António Guterres, UN Secretary-General, highlighted in a recent speech to world leaders that a successful COP27 outcome has to include a financing facility for loss and damage.”
16 August: Biden signs landmark US climate bill: the Inflation Act
US President Joe Biden has called the Act, which could slash US emissions by 40%, the “largest investment ever in combatting the existential crisis of climate change. In this article – Inflation Reduction Act explained: the most important climate bill in US history? – Schroders’ climate specialists including fund manager Mark Lacey and Greencoat Capital’s David Boyce share their takes on the new legislation.
Of the $790 billion it is expected to raise, $369 billion is earmarked for energy and climate change priorities.
Analysis by the REPEAT Project, an energy policy evaluation group, suggests the Inflation Reduction Act could cut 2030 CO2 emissions by an extra gigaton (one billion metric tons).
Climate change fund manager Isabella Hervey-Bathurst says: “This is enough to close two-thirds of the gap between what current policies, ie ’business as usual’, will achieve and where the US would need to be in 2030 to hit the target to cut emissions by 50% vs 2005.”
Alex Monk, a fund manager specialised in the energy transition, says: “The bill is clearly supportive for company earnings across various parts of the energy transition sector – such as solar, wind, storage, hydrogen, parts of the supply chain – and it can hopefully unlock some of the bottlenecks that have caused a lack of activity in certain parts of the market recently.”
26 July: just over 100 days to go until COP27
With just over 100 days to go until COP27, we are initiating this live blog to share the latest news and perspectives on the climate crisis around the world.
The annual Conference of the Parties is one of the world’s most important international events. It sees representatives from governments and other organisations gather to report on their country’s progress against the goals set out in the Paris Agreement and make new decisions on to how to reduce carbon emissions.
At the 2015 conference, countries were asked to make changes to keep global warming "well below" 2°C above pre-industrial levels – and to try to aim for 1.5°C.
Over the last few weeks of November 2021, all eyes were on Glasgow as global leaders, businesses and charities gathered for COP26, which was hosted by the UK.
As Simon Webber, a lead portfolio manager at Schroders who has invested in climate change trends for more than 15 years, said at the time: “Some conferences can be a formality, but COP26 is arguably the most important climate conference in a decade.”
Topics covered were wide-ranging. From developments in natural capital and carbon markets and the creation of the Natural Capital Investment Alliance to accelerate natural capital as a mainstream investment theme, to the phasing down of coal and commitments to end harmful deforestation.
We’ll be bringing you the latest climate news in the run-up to negotiations in Sharm El Sheikh.
In a nutshell: COP26 recap
In a nutshell: COP27 and what’s next
1: “An atlas of human suffering”: IPCC climate change update (released 28 February 2022)
2: Now or never for climate change mitigation, IPCC warns (released 4 April 2022)
A synthesis report is scheduled to be released in late 2022 or early 2023.
More from COP26:
Peter Harrison: two reasons for post-COP26 optimism
“A quiet revolution in environmental investment is underway. It will make a difference.” – Peter Harrison, Group Chief Executive
What does COP26 mean for climate change investors – and what next?
“COP26 wasn’t all about governments: on the private sector side we saw the formation of the Glasgow Financial Alliance for Net Zero (GFANZ) chaired by Mark Carney and Michael Bloomberg. This comprises $130 trillion of assets which are committed to net zero goals.” – Simon Webber, Lead Portfolio Manager
Andy Howard: COP26 success or unmitigated disaster?
“There were a number of individual areas – for example around deforestation and around carbon markets – which moved forward. But in some ways the headline ambition of COP, which was really to ratchet up the levels of ambition of individual countries, has been somewhat deferred through to next year and next year’s COP in Egypt.” – Andy Howard, Global Head of Sustainable Investment
Watch Dame Elizabeth Corley, Schroders Chair, speak about the role of the private sector at COP26
Dame Elizabeth Corley, also chair of the Impact Investing Institute, set out Schroders’ commitment to investing in natural capital as part of an influential speaking slot at the COP26 Leaders event: Action on Forest and Land-use on 2 November 2021.
“It’s our ambition to scale this. It’s also to catalyse change, to improve the way we can finance projects, start early-stage innovation and to help others in a way that means we are doing absolutely the right thing for people and the planet and to also deliver a financial return for everyone who saves money with us.”
COP26: a quick guide to common terms
“The just transition is both a goal and a requirement: global agreement across policymakers representing every part of the global economy will not be possible unless all consider the plan fair.” – Andy Howard, Global Head of Sustainable Investment
How can investors ensure a “just transition” in climate change fight?
“A dollar invested in emerging and frontier markets can do more for the climate emergency than one invested in developed markets, but we must ensure plans are fair to all.” – Maria Teresa Zappia, Head of Sustainability and Impact at Schroders Capital
An investor’s guide to climate change: the simple and surprising facts
“The good news is that we are concerned enough for Greta Thunberg to be immediately recognisable around the world. The bad news is that we are not scared enough. Despite all the policy action in the last decades, greenhouse gas emissions are still increasing and the planet is still warming.” – Anastasia Petraki, Investment Director, Sustainability
Investor expectations for COP26
“A powerful way to incentivise businesses to decarbonise would be an agreed carbon price. This would charge emitters based on the amount released into the atmosphere, aiming to put the cost back to the source. Many countries already have some form of carbon pricing, but in order to be effective we would need universal adoption.” – Kate Rogers, Head of Sustainability, Wealth
This block is deleted,Remove this placeholderUS President Joe Biden has called the Act, which could slash US emissions by 40%, the “largest investment ever in combatting the existential crisis of climate change. In this article – Inflation Reduction Act explained: the most important climate bill in US history? – Schroders’ climate specialists including fund manager Mark Lacey and Greencoat Capital’s David Boyce share their takes on the new legislation.
Of the $790 billion it is expected to raise, $369 billion is earmarked for energy and climate change priorities.
Analysis by the REPEAT Project, an energy policy evaluation group, suggests the Inflation Reduction Act could cut 2030 CO2 emissions by an extra gigaton (one billion metric tons).
Climate change fund manager Isabella Hervey-Bathurst says: “This is enough to close two-thirds of the gap between what current policies, ie ’business as usual’, will achieve and where the US would need to be in 2030 to hit the target to cut emissions by 50% vs 2005.”
Alex Monk, a fund manager specialised in the energy transition, says: “The bill is clearly supportive for company earnings across various parts of the energy transition sector – such as solar, wind, storage, hydrogen, parts of the supply chain – and it can hopefully unlock some of the bottlenecks that have caused a lack of activity in certain parts of the market recently.”
With just over 100 days to go until COP27, we are initiating this live blog to share the latest news and perspectives on the climate crisis around the world.
The annual Conference of the Parties is one of the world’s most important international events. It sees representatives from governments and other organisations gather to report on their country’s progress against the goals set out in the Paris Agreement and make new decisions on to how to reduce carbon emissions.
At the 2015 conference, countries were asked to make changes to keep global warming "well below" 2°C above pre-industrial levels – and to try to aim for 1.5°C.
Over the last few weeks of November 2021, all eyes were on Glasgow as global leaders, businesses and charities gathered for COP26, which was hosted by the UK.
As Simon Webber, a lead portfolio manager at Schroders who has invested in climate change trends for more than 15 years, said at the time: “Some conferences can be a formality, but COP26 is arguably the most important climate conference in a decade.”
Topics covered were wide-ranging. From developments in natural capital and carbon markets and the creation of the Natural Capital Investment Alliance to accelerate natural capital as a mainstream investment theme, to the phasing down of coal and commitments to end harmful deforestation.
We’ll be bringing you the latest climate news in the run-up to negotiations in Sharm El Sheikh.
1: “An atlas of human suffering”: IPCC climate change update (released 28 February 2022)
2: Now or never for climate change mitigation, IPCC warns (released 4 April 2022)
A synthesis report is scheduled to be released in late 2022 or early 2023.
“A quiet revolution in environmental investment is underway. It will make a difference.” – Peter Harrison, Group Chief Executive
What does COP26 mean for climate change investors – and what next?
“COP26 wasn’t all about governments: on the private sector side we saw the formation of the Glasgow Financial Alliance for Net Zero (GFANZ) chaired by Mark Carney and Michael Bloomberg. This comprises $130 trillion of assets which are committed to net zero goals.” – Simon Webber, Lead Portfolio Manager
“There were a number of individual areas – for example around deforestation and around carbon markets – which moved forward. But in some ways the headline ambition of COP, which was really to ratchet up the levels of ambition of individual countries, has been somewhat deferred through to next year and next year’s COP in Egypt.” – Andy Howard, Global Head of Sustainable Investment
Dame Elizabeth Corley, also chair of the Impact Investing Institute, set out Schroders’ commitment to investing in natural capital as part of an influential speaking slot at the COP26 Leaders event: Action on Forest and Land-use on 2 November 2021.
“It’s our ambition to scale this. It’s also to catalyse change, to improve the way we can finance projects, start early-stage innovation and to help others in a way that means we are doing absolutely the right thing for people and the planet and to also deliver a financial return for everyone who saves money with us.”
COP26: a quick guide to common terms
“The just transition is both a goal and a requirement: global agreement across policymakers representing every part of the global economy will not be possible unless all consider the plan fair.” – Andy Howard, Global Head of Sustainable Investment
How can investors ensure a “just transition” in climate change fight?
“A dollar invested in emerging and frontier markets can do more for the climate emergency than one invested in developed markets, but we must ensure plans are fair to all.” – Maria Teresa Zappia, Head of Sustainability and Impact at Schroders Capital
An investor’s guide to climate change: the simple and surprising facts
“The good news is that we are concerned enough for Greta Thunberg to be immediately recognisable around the world. The bad news is that we are not scared enough. Despite all the policy action in the last decades, greenhouse gas emissions are still increasing and the planet is still warming.” – Anastasia Petraki, Investment Director, Sustainability
Investor expectations for COP26
“A powerful way to incentivise businesses to decarbonise would be an agreed carbon price. This would charge emitters based on the amount released into the atmosphere, aiming to put the cost back to the source. Many countries already have some form of carbon pricing, but in order to be effective we would need universal adoption.” – Kate Rogers, Head of Sustainability, Wealth
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