Progress since COP26 – Many pledges are still just ‘plans for plans’; developed countries have failed to scale up climate financing for the global south; major geopolitical pressures have put climate action on the ‘back burner’; while we've witnessed unprecedented climate events across the globe.
The credibility gap is failing to encourage corporate decarbonisation and incentivise investment – While over 90% of GDP is covered by net zero targets, emissions are still on the rise, deforestation in the Amazon reached record levels and fossil fuel subsidies hit $420 billion.
Those least responsible for emissions are often most vulnerable to climate impacts – Developed countries must take more responsibility and provide the necessary climate finance to address this justice gap.They must also limit loss and damage by closing the adaptation gap.
What would success at COP27 look like? – For COP27 to be considered a success, the four interconnected gaps need to be addressed. But expectations are low. Few countries seem willing to scale up their commitments, while international cooperation will be harder to agree on given the current global economic and political environment.
COP27 outcomes are of critical importance to investors – we will therefore be on the ground proactively collaborating with organisations, policymakers and investors.