COP27: mid-way, but much work still to be done

As the first week of negotiations and events at COP27 rounds to an end, resolution of outstanding items and talks now move to be overseen by the Egyptian Presidency. Key focus areas at COP27 remain finance (including with respect to loss and damage) and urgent increases in country-party ambition, to remain in touch with the 1.5 degree temperature goal. ?

There have been other significant developments in the wings of negotiation halls, which complement rapid action on climate change. These included the launch of the UN High Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities report (HLEGNZE) (the HLEGNZE report can be accessed here).?Greenwashing, voluntary carbon market standards and progress of operational details under Article 6 (including interactions with the voluntary market) have also received attention.?For business and industry many of the parallel announcements, as well as progress of technical details under Article 6, will and should be of interest and are worth reviewing. As the UN Secretary General stated in his response to the HLEGNZE report:

We must have zero tolerance for net-zero greenwashing

In relation to Article 6, details are being progressed, however some technical considerations have attracted differing views from parties. These include changes to authorisation of ITMOs (including revocation) under Article 6.2 and governance arrangements (including timing) of CDM element transition under Article 6.4. There remain a few issues to resolve this week under each element of Article 6 (confirmed by the indications that text forwarded for discussion next week does not reflect consensus among parties).

Completing work on Article 6.4 is recognised as a priority, however there remains a huge volume of technical work to resolve. Assuming final decision texts are resolved at the end of next week before the conclusion of COP27, this work will be progressed by parties through 2023.?

Draft decision text for COP27 contains a significant number of bracketed items, indicating parties will need to work hard to reach consensus before Friday. All eyes will be on whether and how political engagement during the upcoming week may move concepts regarding finance and loss and damage forward and whether agreement can be reached on any pathways to implement these items, alongside greater urgency regarding NDC ambition and the 1.5 degree temperature goal.

It will be an interesting second week and we look forward to discussing the outcomes with you.

~ Emily