The run up to COP27

As we look to the upcoming international climate change conference, COP27 in Sharm el-Sheikh, Egypt, the focus has shifted from ambition to driving implementation.

As we turn the climate pledges into action and focus on policies and practices to close the gap, we must accelerate the progress towards climate-positive regulation currently underway, including mandatory disclosures. With net-zero targets spanning over 90% of the global economy, voluntary action is not enough to achieve the goals of the Paris Agreement. COP27 has to support a holistic approach to sustainable development that focuses on adaptation and enhancing resilience. Together with the Race to Zero - where members reduce emissions across all scopes swiftly and fairly, with transparent action plans and robust near-term targets - and the Breakthrough Agenda - where we accelerate sector transitions through stronger international collaboration - we can mobilise stronger and more ambitious climate action.

The Glasgow Climate Pact, which clearly links nature and climate, recognises the importance of protecting, conserving and restoring nature and ecosystems. In fact, we know that there is no pathway to a net-zero world without reversing nature loss, ending deforestation and scaling nature-based solutions. Investors are just starting to recognize their fiduciary duty to address the material financial, regulatory, and reputational risks arising from climate and nature-related risks. Nature-based solutions also present a massive opportunity - a nature-positive economy can generate around USD$10.1 trillion per year and 395 million jobs by 2030, according to the World Economic Forum. Storebrand Asset Management was an original signatory to the Commitment on Eliminating Agricultural Commodity-Driven Deforestation, along with over 30 financial institutions which are working towards this goal by 2025. COP27 and the upcoming UN Convention on Biological Diversity, COP15, play a key role in advancing policies and creating an enabling environment for financial institutions and non-state actors to tackle the climate and biodiversity crises.

The urgency to act is clear, with the latest IPCC reports noting that a major climate finance gap continues to persist. Reaching net-zero emissions by 2050 requires $125 trillion of investment and financial institutions are vital in driving ambition and delivering on the goals of the Paris Agreement. Putting people and nature first in pursuit of a resilient world means we don’t just survive climate shocks and stresses but thrive in spite of them. As we unlock, channel and scale finance towards adaptation and resilience efforts, in alignment with the 1.5oC aligned nature-positive economy, we match the urgent, ambitious, impactful and transformative action to support vulnerable communities and achieve a zero carbon future.

Nigel Topping, CMG , High-Level Climate Action Champion for COP26 and the U.K.