COP 27 preview: regaining momentum

COP 27 preview: regaining momentum allianzgi.com November 2022 COP 27 (The UN Climate Change Conference) takes place in Egypt in November, providing a check-in on global progress towards net zero in a year dominated by economic and geopolitical pressures. There are reasons to be optimistic. In November 2022, the world’s attention will be drawn to Egypt and COP 27, the global climate Key takeaways Matt Christensen summit. Whereas last year’s conference slogan – The focus of this year’s COP 27 is on Global Head of was Uniting the world to tackle climate change, “delivery” after an eventful year that Sustainability and this year the focus is on Delivering for people Impact Investing has also revealed the flaws in our and the planet. This shift underscores the sense existing energy mix of urgency around implementation, especially – The financial sector will be in the after an eventful 12 months. At last year’s summit, spotlight, including an update on the I ended my panel by asking what it would take Climate Finance Delivery plan that for climate to be taken seriously by the financial aims to mobilise climate finance for services sector – 2022 demonstrated how much developing countries we still need to evolve the wiring of the modern – In a year of geopolitical upheavals, economy. severe weather events have COP 27 will seek to achieve the right balance emphasised the need to stay focused of optimism and realism required to renew the on climate and the biodiversity topics solidarity between nations, and the agenda aims with which it is closely connected to achieve this through a more explicit reach into biodiversity and social factors. It is only through a coherent and collaborative interplay of climate, cleaner energy transition and a phasing-out planet and people that we can reclaim any of coal. momentum lost in 2022. On the other hand, the opportunity relates Conference priorities to the recognition of the flaws in our existing What do we expect to be the key talking points energy mix, major high-profile initiatives like of the conference? Let’s start with the elephant the US Inflation Reduction Act, and the fact in the room – how economic and geopolitical that twice as many companies joined the events are impacting the 1.5 degree-trajectory. Science Based Targets initiative this year The risk is that the political mission of ensuring compared with 2021. A key area of optimism energy security, access and affordability in the is the significant progress being made on very near term decelerates a transition to a renewables in China, Europe, India and the Value. Shared.