Jeroen Ouwehand (Senior Partner, Clifford Chance), on behalf of the Clifford Chance COP26 team
After a tense wait as COP26 went deep into overtime, the eventual Glasgow Climate Pact marked the conclusion of an imperfect, but welcome diplomatic milestone in the battle to keep global warming to 1.5°C above pre-industrial levels. Reflecting on our time in Glasgow, here are our three reasons why the glass is more than half-full.
Acknowledging the Emergency
Six years on from Paris, there is finally firm acknowledgement of the existential threat posed by climate change and that anything short of aiming for max. 1.5°C of warming is unsustainable. In particular, the Parties agreed that the current Nationally Determined Contributions (NDCs) proposed in advance of COP26 are insufficient and likely to result in warming of almost 2.4°C. The Pact obliges Parties to revert in 2022 with upgraded NDCs that keep 1.5°C alive and achieve a net zero transition by 2050 (including an express commitment to a 45% reduction in emissions by 2030).
Transition to Clean Energy
Despite the 11th hour weakening of a coal "phase-out" commitment to "phasedown," Glasgow spelled the (perhaps, slow) beginning of the end for the most emission-intensive fossil fuel. Expect to see more deals in the coming years like the Just Energy Transition Partnership with South Africa, which pledged USD8.5 billion from the EU, US and UK to phase-out coal, support affected workers and develop clean energy capacity. The Pact was also the first UN agreement to expressly mention the phase-out of fossil fuels, after 25 states separately agreed to stop financing overseas projects.
Collaboration
COP26 was as much about private sector involvement and ambition as government commitments. Achieving net zero will require the largest ever reallocation of private capital, fundamentally transitioning the global economy to green energy in 30 years. This unprecedented collaboration was reflected in several cross-sector initiatives, including the Glasgow Financial Alliance for Net Zero and First Movers Coalition, representing over USD 130 trillion in assets. An agreement on the so-called 'Paris Rulebook' also provides developing states with adaptation funding from the private trading of emissions-reduction credits on the open market.