It was “finance day” at the COP26 climate summit, in which a group of huge international banks pledged to use their asset base of more than $ 100 trillion to finance green projects.
The noisy, headline-grabbing leaders have now gone home, leaving negotiators the brutally difficult task of forging the details of Paris’s promise to keep the world in 1.5 degrees warming.
It comes as a new study from the Global Carbon Project shows that emissions have recovered to near pre-pandemic levels due to increased emissions from coal and natural gas.
RNZ climate reporter Hamish Cardwell has a rundown of the day’s most important events at the summit in Glasgow, and a few things to see tomorrow.
$ 140 trillion in assets in the climate tank
A group of some of the largest banks and insurance companies promise to use their asset base of more than $ 100 trillion to finance green projects.
The 450 financial institutions, which collectively control 40 percent of global assets, have also vowed to cut their carbon emissions to zero by 2030.
However, Oxfam Great Britain Chief Executive Danny Sriskandarajah said Morning report it’s a good step, but it doesn’t stop banks from investing in fossil fuels.
He said that for financial initiatives to be effective they must force banks to invest only in green projects.
Another sensitive issue is agreeing on a way to transparently verify that projects are actually net zero.
Big announcements tomorrow
Poland, Vietnam, Chile and other countries will pledge tomorrow to phase out coal-fired power generation and stop building new plants, in a deal Britain hopes will commit 190 nations and organizations to ditch fuel.
The richest countries would phase it out in the 2030s, while the poorest countries would go until the 2040s.
However, as The Guardian reports, some of the world’s largest coal-dependent economies, including Australia, China, India, and the US. they were missing in the deal.
Reuters also reports that tomorrow more than a dozen countries, including the UK, Denmark, along with the European Investment Bank, will pledge to halt public funding for fossil fuel projects abroad.
The British government, which is leading the effort, was in last-minute talks to register more countries.
The countries aligned so far have collectively invested billions of dollars per year in international fossil fuel projects over the past few years.
However, the agreement will allow unspecified exemptions in limited circumstances.
The $ 100 Billion Missing
Despite a series of new commitments, the promise of rich nations to give developing countries $ 100 billion a year for climate action has so far not fully materialized.
Now it seems likely that the goal will not be reached until 2023.
The $ 100 billion pledge falls far short of the needs of vulnerable countries to tackle climate change, but it has become a symbol of trust and equity between rich and poor nations.
Vulnerable countries will need up to $ 300 billion per year by 2030 for climate adaptation alone, according to the United Nations.
– RNZ / Reuters / BBC