What we expect from COP27 in Egypt
Insights

What we expect from COP27 in Egypt

On the 6th November, the UN will open its doors for the 27th round of global climate change negotiations at Sharm El-Sheikh in Egypt. Though there is a momentous amount to be done, including closing the 1.5C emissions gap and mobilising billions of dollars in climate finance, the conference is facing rough political headwinds. The impacts of the Ukraine-Russia conflict on European energy markets have triggered a cost-of-living crisis, resulting in several countries backtracking on climate pledges by re-opening mothballed fossil fuel powerplants. This is exacerbated by the souring of China and US relations, whose bilateral pact brought much-needed momentum to COP26 in Glasgow.

 

Yet, another year of climate extremes, including the most severe flooding in Pakistan’s history, wildfires burning over 600 000 hectares of land in Europe and multiple temperature records broken again, has underlined the crucial importance of making COP27 one of progress. With Africa the host continent, we can expect questions on adaptation and on compensation for damage from physical climate risk to be a major theme of discussions.

 

Here we outline some of the main questions ahead of the negotiations, underling where we think progress may be made. 

Can COP27 close the 1.5C emissions gap?
Can an agreement on a finance mechanism for loss and damage finally be reached?
Will the first African COP since 2016 shine a new light on the need for adaptation finance?
Will climate mitigation finance realities finally align with expectations?
Will momentum from COP26 on carbon markets continue?
i https://www.unep.org/resources/emissions-gap-report-2021
ii https://climateactiontracker.org/documents/997/CAT_2021-11-09_Briefing_Global-Update_Glasgow2030CredibilityGap.pdf
iii https://unfccc.int/process-and-meetings/the-paris-agreement/the-glasgow-climate-pact-key-outcomes-from-cop26
iv https://www.climatewatchdata.org/2020-ndc-tracker
v https://www.theguardian.com/environment/2022/may/25/egypt-climate-finance-top-of-agenda-cop27-talks
vi https://www.reuters.com/world/asia-pacific/australia-raises-emissions-cutting-target-2030-2022-06-16/
vii https://legalresponse.org/legaladvice/glasgow-dialogue-on-loss-and-damage/
viii https://climatechangenews.com/2022/09/20/denmark-first-country-pledge-loss-and-damage-finance/
ix https://oecd-development-matters.org/2022/01/25/why-cop26-failed-to-address-loss-and-damage-from-climate-change/
xhttps://e360.yale.edu/features/cop27-un-climate-conference-egypt-loss-and-damage
xi https://www.consilium.europa.eu/en/press/press-releases/2022/10/24/council-sets-out-eu-position-for-un-climate-summit-in-sharm-el-sheikh-cop27/
xii https://www.climatechangenews.com/2022/02/24/us-seeks-to-remove-losses-and-damages-from-scientific-report-on-climate-impacts/#:~:text=The%20US%20is%20pushing%20back,have%20told%20Climate%20Home%20News.
xiii https://www.iied.org/sites/default/files/pdfs/2022-06/20976iied.pdf
xiv https://www.nature.com/articles/d41586-022-02761-1
xv https://www.oecd.org/newsroom/statement-from-oecd-secretary-general-mathias-cormann-on-climate-finance-in-2019.htm
xvi https://www.wri.org/insights/can-global-goal-adaptation-be-locally-led
xvii https://www.climatechangenews.com/2022/07/29/rich-countries-fall-17bn-short-of-2020-climate-goal/
xviii https://oxfamilibrary.openrepository.com/bitstream/handle/10546/621066/bp-climate-finance-shadow-report-2020-201020-en.pdf
xix https://ecf3.apms5.com/anywhere/m?s=ecf3&m=s_269fab73-2b26-449d-a9d3-
20c3c2ed2aa9&u=e1jq4wvfdtfm2ha564t3adj15mrmadtk5mu44c1n5n142dhp5n24ah2
18h1mahj460rkj&r2=d1u78w3k78qjyxvqewq6cx1ecdqpubv3dxq78tbeegqp2dk56mvpcc
b35mr30db15mu3jtk15ngk4e9n5mr32rtj69gp4r9r6rt62&n=37
xx https://ecf3.apms5.com/anywhere/m?s=ecf3&m=s_269fab73-2b26-449d-a9d3-
20c3c2ed2aa9&u=e1jq4wvfdtfm2ha564t3adj15mrmadtk5mu44c1n5n142dhp5n24ah2
18h1mahj460rkj&r2=d1u78w3k78qjyrv1e9q6atv9cnjpwt3fexppavkm5tqq4ttf68r34chf60
wjychr5xtpyxbmd0pp2tkjd5hp2bbk5nn7awvm5njpwtbjcxwjux3jc5q76ubmd5qpwbbgc5t78
vk5e9tpgubg5nppyt35dgppcvvj5nhprubdc5u6abb6d5q62vk3d5q6ebb6dxt2urb6e9mp6r
9dcnv6avkm5mvkjd1r&n=33
xxi https://www.whitecase.com/insight-alert/negotiations-carbon-credits-expected-continue-cop27
1 noviembre 2022
Joe Horrocks-Taylor
Joe Horrocks-Taylor
Senior Associate, Analyst, Responsible Investment
Share on twitter
Share on linkedin
Share on email
Temas clave
Temas relacionados
Listen on Stitcher badge
Share on twitter
Share on linkedin
Share on email
Temas clave
Temas relacionados

PDF

What we expect from COP27 in Egypt

Important information

© 2022 Columbia Threadneedle Investments

For professional investors.

For marketing purposes. Your capital is at risk. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
Not all services, products and strategies are offered by all entities of the group. Awards or ratings may not apply to all entities of the group.

This material should not be considered as an offer, solicitation, advice, or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness.

In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

true
true

Important information

© 2022 Columbia Threadneedle Investments

For professional investors.

For marketing purposes. Your capital is at risk. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
Not all services, products and strategies are offered by all entities of the group. Awards or ratings may not apply to all entities of the group.

This material should not be considered as an offer, solicitation, advice, or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness.

In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

Opiniones relacionadas

25 enero 2023

Steven Bell

Chief Economist, EMEA

Opening Bell 2023 – Global Market Outlook

We discuss how far interest rates could rise, assess the severity of any economic contraction, and look forward to opportunities as recovery emerges.
Read time - 6 min
24 enero 2023

In Credit Weekly Snapshot – January 2023

Our fixed income team provide their weekly snapshot of market events.
Read time - 3 min
23 enero 2023

Steven Bell

Chief Economist, EMEA

Has recession been cancelled?

Could lower European gas prices and easing US inflation mean we’re set to avoid a winter recession?
Watch time - 5 min

También puede interesar

Enfoque de inversión

El trabajo en equipo nos define y es fundamental en nuestro proceso de inversión, estructurado para facilitar la generación, consecución e implementación de grandes y fuertes ideas de inversión para nuestras carteras.

Fondos

Columbia Threadneedle Investments dispone de una amplia gama de fondos de inversión que cubre diversos objetivos de inversión.

Capacidades de inversión

Ofrecemos un amplio abanico de soluciones y estrategias de inversión gestionadas activamente que abarcan mercados y clases de activos a escala mundial, regional y nacional.

Confirme algunos detalles sobre usted para visitar su centro de preferencias

*Campos obligatorios

Algo salió mal. Por favor, vuelva a intentarlo

Gracias. Ahora puede visitar su centro de preferencias para elegir qué información le gustaría recibir por correo electrónico.

Para ver y actualizar qué información recibe de nosotros por correo electrónico, visite su centro de preferencias