Pressure is mounting on governments to support their COP27 commitments

COP27, the “African COP” held in Sharm El Sheikh earlier this month,?held a mirror to the world on progress against climate change.?For Africa, the results were bittersweet.

The sweet

For most African countries, the?main goal?of COP27 was to secure a mechanism for?“loss and damage”.?The?Group of 77, a coalition of 134 developing countries, presented a proposal for a fund mechanism under which the wealthy countries most responsible for most historical emissions would support poor nations facing climate change harms that they did not cause. This idea has been proposed for 30 years and is a critical step in restoring good faith between the developed and developing world.?This historic agreement was reached at COP27?but?the devil will be in the detail: How much? By whom? Who will benefit??

In the meantime, the G7 and “vulnerable” countries in the V20 launched the?Global Shield?against Climate Risks. With funding of €210 million, this facility?will?increase protection for poor and vulnerable people,?by providing and facilitating pre-arranged finance against disasters.

A?big win for developing countries?was the?re-affirmation to double?adaptation?finance??For those most affected by extreme weather and natural disasters,?“the choice is between adapting or starving”,?according to delegate Dina Saleh.?However, finance for?mitigation?has traditionally far outweighed finance for?adaptation. Doubling the commitment to adaptation is a tacit acknowledgment that climate change is already here,?and that poor countries need help adapting to it.?The additional pledges to the Adaptation Fund ($230 million) and the European Union’s reinforced commitment to adaptation (€1 billion) in African countries?are?progress on adaptation finance.

Africa?show?promise?for?clean technology solutions.?Green steel, aluminium, hydrogen,?and solar power are particularly attractive investment opportunities.?Discussions about clean technologies were coupled with efforts to eradicate poverty and support human rights, explicitly supporting the rhetoric of a Just Transition.

?The bitter

?COP27 reminded us that climate action has a long way to go.?The?UN Framework Convention on Climate Change?warned that the 1.5°C target is unlikely to be met, temperatures could rise by 2.8°C by the end of the century, and we are not bringing down emissions: 2022 emissions will be the?highest on record. For Africa, this means continued rapid climate change in a continent least prepared to cope with it.

COP27 highlighted unmet promises?(see timeline below). Most disappointingly, the annual $100-billion target pledged by rich countries has not been?met?in any year since 2013. Additionally, although negotiators reaffirmed the importance of keeping global temperature rises below 2°C (ideally 1.5°C), clear plans for doing so are yet to be seen. A?resolution to?ensure?emissions peak by 2025 was taken out of the?Sharm El Sheikh Implementation Plan.?

The plan also avoided a phase-down of all fossil fuels?(rather than coal only) but this did?make?it into the conference as a new topic of discussion. These exclusions might buy some fossil fuel-dependent African countries some time to adjust,?but are disappointing outcomes for climate action.

What's next?

Pressure is mounting on governments to prepare the plans, funding and interim targets to support their COP27 commitments.?Genesis?will?continue supporting countries in meeting their Nationally Determined Contributions, and?our?corporate and investor clients in meeting net zero targets,?and understanding climate change-related risks and opportunities.

Best wishes

The Just Transition Taskforce at Genesis Analytics