Insights from COP26 for the private sector, by UNEP-WCMC
This has been without doubt the most nature-focused Climate COP ever.
This might not necessarily be seen in the formal agenda or in the text of the agreement, but it’s absolutely there in the side events, the new initiatives, the declarations and the commitments being made. The convergence of the climate and nature agendas that has been talked about for the last few years is now a reality and is here to stay. For more information on the role of nature in mitigating climate change please do have a look at the UNEP/IUCN briefing on nature-based solutions which was launched at COP26 and lead-authored by UNEP-WCMC's Principal Technical Specialist, Lera Miles.
Finance
Finance is increasingly aligning towards the goal of a carbon-neutral, nature-positive world. Whilst much of the attention is on the $100 billion climate finance funding from developed to developing countries, there was arguably a bigger and more positive buzz around the redirection of trillions of $ of private finance. The Glasgow Financial Alliance for Net Zero already has members from over 450 financial institutions across 45 countries responsible for assets of over $130 trillion, all of whom have committed to contribute to limiting warming to less than 1.5 degrees and to take action swiftly and fairly through transparent action plans and robust near-term targets.
Climate Change Adaptation
Adaptation to climate change is getting more profile. However, many businesses still lack an understanding of their own operational risks from both locked-in and potential future climate change impacts and how to deploy nature-based solutions in a way that both mitigates and adapts to climate change whilst delivering co-benefits for nature. Understanding risks and potential adaptation solutions is now urgent as climate change impacts play out across the world.?
Carbon Markets
The momentum and agreement around carbon markets has implications for nature-based solutions and creating nature and climate co-benefits. The rules for carbon markets under Article 6 of the Paris Agreement were finally resolved, and the need to respect Indigenous People and Local Communities land access, acquisition and tenue is also front and centre. Carbon markets must look beyond simple CO2e calculations and deliver wider community and environmental benefits if they are to be successful and sustainable.
Measurement, Disclosure and Reporting
Measurement, disclosure and reporting on climate and nature impacts and dependencies was another COP26 hot topic. The explosion in the number of sustainability reporting platforms in recent years is now, at last, starting to consolidate with the announcement of an International Sustainability Standards Board and through the work of the Task Force on Nature-related Financial Disclosures. The UNEP-WCMC team is helping with alignment in this space, including through leading the EU Align project which is supporting businesses, financial institutions and other stakeholders in developing standardised natural capital accounting practices, including a standardised approach to biodiversity measurement.
To find out more about our work, visit unep-wcmc.org