COP26: Week 2 recap

With COP26 now finished, we look at some of the key announcements made during Week 2:  

• Glasgow Climate Pact - The 197 countries represented at COP26 agreed new rules on limiting greenhouse gas emissions, including a "phase-down" of coal power (a last minute change from "phase out") and a phase-out of "inefficient" fossil fuel subsidies but with no timeline. This marks the first time that coal or fossil fuels have been directly referenced in a COP agreement (see COP26 press release). 
• Carbon market rules - Negotiators finally reached a deal on the Article 6 rulebook on a global carbon market, which has the potential to unlock billions of dollars of investment in carbon reduction projects.
• US-China joint declaration - In a surprise announcement, the US and China produced a joint statement pledging to boost climate co-operation to achieve the 1.5C temperature goal over the next decade.
• Oil & gas (BOGA) - The Beyond Oil & Gas Alliance, led by Costa Rica and Denmark, has committed to ending oil and gas extraction. Notable absences were the US (although the state of California has signed up as an associate member) and the UK (although Wales has signed up separately).
• Cars - A group of over 30 countries and major car manufacturers committed to phasing out fossil fuel vehicles by 2040. Signatories include India, Turkey, Ford, Volvo and General Motors. However, the world's top two carmakers, Toyota Motor Corp and Volkswagen AG, as well as major car markets China, the US, France and Germany, did not sign up.
• Shipping - A coalition of 19 countries, including Britain and the United States, agreed to create zero emissions shipping trade lanes between ports to accelerate decarbonisation of the global shipping industry.
• Aviation - The International Aviation Climate Ambition Coalition was launched with 20 countries committing to reduce aviation CO2 emissions. Signatories include the UK, the US and Japan. Separately, the US has set a goal of achieving net-zero emissions from the US aviation sector by 2050.
• Fashion - The Fashion Industry Charter for Climate Action, made up of over 100 companies (including Kering, Chanel and Nike), committed to raising their environmental targets. The group will now aim to halve emissions by 2030, up from a previous target of 30%.
• Solar power - The World Resources Institute (WRI), International Solar Alliance (ISA) and Bloomberg Philanthropies have launched a Solar Investment Action Agenda, which will encourage US$1 trillion of investment in solar energy by 2030.
• Next COPs - It has been confirmed that Egypt will host the next COP in 2022, followed by the UAE in 2023.

We will shortly be publishing a more detailed analysis of what the final outcome of COP26 means in practice for business in the UK, EU, US and Asia. 

And why not join us for a post-COP webinar on 18 November - click here to register.