Spread the love

Post Views: 10

Camilla Fenning, the Fossil Fuel transition expert at E3G, said: “It’s good that the Indonesians, fresh from yesterday’s announcement of a $20 bn deal for their Just Energy Transition Partnership, ensured the Glasgow Climate Pact commitments on coal phase down were reiterated, calling for “accelerating efforts towards the phasedown of unabated coal power” and referencing phase-out of inefficient fossil fuel subsidies.

Negotiators at COP27 now need to take their direction from this consensus to a deal on financing loss and damage, concrete plans for accelerating emissions reductions by agreeing on global action to phase out all fossil fuels and setting new political direction on the kinds of finance system transformation needed to deliver both climate and development goals.

This means a deal of financing loss and damage and clarity on how doubling adaptation finance will be achieved, concrete plans for accelerating emissions reductions by agreeing on global action to phase out all fossil fuels and setting new political direction on the kinds of finance system transformation needed to deliver both climate and development goals.”

Alex Scott, Climate Diplomacy and Geopolitics expert at E3G, said:
“This G20 outcome shows that the political sentiment from the COP27 world leaders’ summit” – recognising the gaps to a safer climate pathway and calling for acceleration and finance system transformation to deliver it – reflects the global consensus and direction of travel.

Nick Mabey, E3G Co-CEO, said: “Despite high geopolitical tensions driven by Russia’s invasion of Ukraine, the G20 leaders have sent an unexpectedly strong message on the need to accelerate collective action to tackle the energy, food, economic and climate crises”.

Maria Pastukhova, an Energy expert at E3G, said: “The G20 outcome signals that clean energy is firmly at the heart of global energy security – and that efforts to water down language on coal and clean energy have proven outdated in the context of economic realities. The communique holds the line on the Glasgow Climate Pact language, including a commitment to “Accelerating efforts towards the phasedown of unabated coal power” and medium-term phase-down inefficient fuel subsidies.

Climate Diplomacy

Showing the fight for 1.5C does reflect global consensus, the G20 communique referred to the Glasgow Climate Pact’s calls to accelerate efforts to keep it within reach. Regulatory reforms agreed under the G20 SF Roadmap are also crucial for financial system reform that will support a sustainable climate transition for all countries. It is concerning to see so much emphasis on these being ‘voluntary’ and ‘flexible’.”

The G20 signalled the need for significant financial system reforms to address global crises, including climate change. The G20 has added to calls for financial system reforms to address global crises, including climate change, which has also been evident at COP27.

The declaration calls for progress on loss and damage at COP – interestingly, about finance, the call for enhancing innovative financing mechanisms could be a way to increase blocker countries’ comfort on new loss and damage funding arrangements. Now, G20 countries need to mirror this ambition at COP and home – by taking action to reduce energy waste as fast as possible and work towards clear pathways out of fossil fuel dependency to strengthen economic and geopolitical resilience of the bloc.”

Kate Levick, Associate Director for Sustainable Finance at E3G, said: “We welcome G20’s financial system architecture statements, particularly around MDB reforms and sovereign debt. It shows the political will to do more on climate and food security, including raising the ambition and implementing climate plans. While the language is weaker than last year (an invitation to countries to enhance ambition rather than a commitment to do so ‘where required’), it still reinforces the global direction of travel.

Financial System Reform

But stating that will is not enough – the G20, as major emitters and economically advantaged, need to step up to build on this outcome at COP27. They outlined the broad reforms needed and took practical steps but did not have a consensus for rapid action across all reform areas.

Despite high geopolitical tensions driven by Russia’s invasion of Ukraine, G20 leaders have sent a strong message to negotiators in Egypt to get a meaningful outcome from COP27. The G20 showed that climate change is still the top geopolitical issue, one of the first things to address in solving other crises.

A lack of consensus on key reform issues, such as greening international financial regulation, is evident and makes the final text overly cautious in some areas. Despite some significant pressure, the Indonesians leant into the language on coal phase down. The onus is on COP27 to recommit to the coal phase down too.

Leaders must now instruct their negotiators at COP27 to follow up these acceptable words with concrete outcomes.