Takeaways of COP27

The last draft of the agreement from COP27  was written on Sunday morning, after a full week of intense negotiations. Let’s see the main outcomes.

Loss & Damage

The very good news is that the theme of compensation for Loss and Damage⁽¹⁾ conquers a dedicated chapter. But it occupies only a placeholder, which means that a committee will have to establish by the end of 2023 who are the donors, who are the beneficiaries and what the traditional and innovative forms of financing will be used.

Fossil fuel

No significant progress has been made on fossil fuels. In fact, the new draft covers only the reduction (phase down) of coal, without mentioning oil and gas. Something more ambitious had been requested by India, Europe, the United States and other countries, but it failed due to the opposition of the oil producing countries.

The draft recognizes that “limiting global warming to +1.5°C requires rapid, deep and lasting reductions in global greenhouse gas emissions…by 43% by 2030, compared to the 2019 level.” This also combines with the EU climate target of reducing EU emissions by at least 55% by 2030, which is a package of energy reforms which the EU countries are currently working on.

The fact that in 2022, after 30 years of COP processes, it is still not possible to name all hydrocarbons as part of the problem, it reveals how the response to the climate crisis is often on the edge between success and failure. There should be more investment in renewable energies, allocating more resources and more responsible choices towards the clean energy, which is a growing sector and it is becoming technologically advanced very fast.

Climate Finance

Point 1 of the draft expressly mentions the “urgent need” to address the issue between climate change and biodiversity loss. Point 7 maintains the +1.5°C target. This is a great achievement, after expecting it would be cancelled in favor of a softer +2°C.

Point 8 requires reductions in greenhouse gas emissions that are “immediate, profound and continuous”. Point 19 states that countries should update their Nationally Determined Contributions (NDCs)⁽²⁾ by COP28, to encourage more efforts in that way.

To complete this, point 49, refers to the donation of $5,600 billion by 2030, as the amount necessary for the developping countries to bring their NDCs for the objective of +1.5°C. Again,  finance stays at the crux of climate diplomacy.

Conclusion

After 2 weeks of thematic events and intense negotiations, COP27 has come to an end with mixed results. In his closing remarks, UNFCC Executive Secretary Simon Stiell, said: “At COP27… we’ve determined a way forward on a decade-long conversation on funding for loss and damage.” Among other positive steps, he said that in the text adopted Sunday morning, “we have been given reassurances that there is no room for backsliding. It gives the key political signals that indicate the phase-down of all fossil fuels is happening.”

One question still remains: will the countries deliver?

(1) “Loss & damage” means the permanent loss or damage caused by the manifestations of climate change, including both severe weather events and slow-onset events, such as sea level rise and desertification
(2)Those are referring to the Paris Agreement, which request each country to outline and communicate their post-2020 climate actions, known as their NDCs