IN FOCUS6-8 min read

COP27 Live Blog

With COP27, the UN climate summit, now underway – follow our blog for the latest developments and our investors’ perspectives.

10/11/2022
cop27

Authors

Vicki Owen
Senior Content Strategist
Global Content Team

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 placeholder
Maria Teresa Zappia at COP27.
This block is deleted,Remove this placeholderThis block is deleted,Remove this placeholder

With 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 placeholder

Yumna 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.”

podcast-snip

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

  • COP26 was the fifth since Paris in 2015, which saw nearly 200 countries signing up to the Paris Agreement, the framework to avoid dangerous climate change by limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C.
  • Sir David Attenborough, the broadcaster and natural historian, kickstarted the event with a speech urging world leaders to turn “tragedy into triumph” as “People’s Advocate for COP26”.
  • By the end of the conference, a new global commitment – the Glasgow Pact – was agreed.
  • For the first time, an explicit plan to reduce use of coal, which is responsible for more than a third of emissions, was agreed.
  • 100 individual country leaders came together, as well as a lot of companies, including Schroders, committing to ending deforestation – certainly commodity-based deforestation, which is deforestation related to farming primarily – by 2030.
  • China and the US, the world’s biggest emitters, agreed to boost climate co-operation over the next decade.
  • A request to double the amount of spending to around $40 billion annually to support developing countries was met. In particular to help enable them to mitigate or reduce the impacts of physical climate change – rising sea levels, increased weather damage – on their economies.
  • A scheme to cut 30% of methane emissions by 2030 was agreed by more than 100 countries.

In a nutshell: COP27 and what’s next

  • COP27 is set to take place from 6-18 November and will be the 27th COP since the first (COP1) in Berlin, Germany, in 1995.
  • A detailed agenda has not yet been released, but you can read about the Egypt Goals and Vision on the Egypt Presidency website.
  • After COP26, countries were asked to come back by this year’s conference to strengthen their 2030 commitments.
  • Mahmoud Mohieldin, the UN climate change high-level champion for Egypt, has said the summit must focus on adapting to loss and damage from climate change.
  • A commitment from 2009’s Copenhagen conference that developed countries would provide significant finance to support countries in the emerging world has still not fully materialised. A $100billion a year target has not been met.
  • The “double counting” problem in carbon markets – whereby a country that’s creating an offset, for example through forestry, would count the benefit while the country buying the offset would also count the benefit – has still not been solved.
  • There is still no global carbon price.
  • The latest updates from the UN’s Intergovernmental Panel on Climate Change have been stark warnings on the impacts of climate change on people and the planet that are already materialising:

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 placeholder
Irene-snip-resized

16 August: Biden signs landmark US climate bill: the Inflation Reduction 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

  • COP26 was the fifth since Paris in 2015, which saw nearly 200 countries signing up to the Paris Agreement, the framework to avoid dangerous climate change by limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C.
  • Sir David Attenborough, the broadcaster and natural historian, kickstarted the event with a speech urging world leaders to turn “tragedy into triumph” as “People’s Advocate for COP26”.
  • By the end of the conference, a new global commitment – the Glasgow Pact – was agreed.
  • For the first time, an explicit plan to reduce use of coal, which is responsible for more than a third of emissions, was agreed.
  • 100 individual country leaders came together, as well as a lot of companies, including Schroders, committing to ending deforestation – certainly commodity-based deforestation, which is deforestation related to farming primarily – by 2030.
  • China and the US, the world’s biggest emitters, agreed to boost climate co-operation over the next decade.
  • A request to double the amount of spending to around $40 billion annually to support developing countries was met. In particular to help enable them to mitigate or reduce the impacts of physical climate change – rising sea levels, increased weather damage – on their economies.
  • A scheme to cut 30% of methane emissions by 2030 was agreed by more than 100 countries.

In a nutshell: COP27 and what’s next

  • COP27 is set to take place from 6-18 November and will be the 27th COP since the first (COP1) in Berlin, Germany, in 1995.
  • A detailed agenda has not yet been released, but you can read about the Egypt Goals and Vision on the Egypt Presidency website.
  • After COP26, countries were asked to come back by this year’s conference to strengthen their 2030 commitments.
  • Mahmoud Mohieldin, the UN climate change high-level champion for Egypt, has said the summit must focus on adapting to loss and damage from climate change.
  • A commitment from 2009’s Copenhagen conference that developed countries would provide significant finance to support countries in the emerging world has still not fully materialised. A $100billion a year target has not been met.
  • The “double counting” problem in carbon markets – whereby a country that’s creating an offset, for example through forestry, would count the benefit while the country buying the offset would also count the benefit – has still not been solved.
  • There is still no global carbon price.
  • The latest updates from the UN’s Intergovernmental Panel on Climate Change have been stark warnings on the impacts of climate change on people and the planet that are already materialising:

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:

“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

More from Schroders on climate change

Issued in the Channel Islands by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroders (C.I.) Limited, licensed and regulated by the Guernsey Financial Services Commission for banking and investment business; and regulated by the Jersey Financial Services Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

 

Authors

Vicki Owen
Senior Content Strategist
Global Content Team

Topics

In Focus
Sustainability
Biodiversity
Climate Change
Environmental
ESG
Natural Capital
Climate leaders
Energy transition

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.