COP27: Advancing Climate Objectives Amidst Conflict

S&P Global Commodity Insights reviews the expectations and outcomes of COP27 and our participation in key discussions at the event, on carbon markets and future energy scenarios.

We also present a critical methane roadmap for Egypt, designed as a template for other countries eager to move from climate commitment to climate action.

COP27: Little progress on energy transition, emissions as loss and damage deal clinched

The UN Climate Change Conference concluded in Sharm el-Sheikh, Egypt, in the early hours of Nov. 20, with no major progress in the final text on emissions reductions or energy transition from COP26 in Glasgow in 2021, despite being billed as the "implementation COP."

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Geopolitical strife overshadows COP27 climate talks

With economic and energy supply pressures dominating political agendas, environmental policies have taken a back seat in 2022 in the run up to COP27 in Egypt. Few new climate commitments have been made despite calls for annual evaluation of national plans at COP26 in Glasgow.

In the meantime global CO2 emissions are set to exceed pre-COVID levels by 2023 and the world's two biggest emitters, China and the US, are at loggerheads. Preventing nations from backsliding on prior commitments would be an achievement in itself for Egypt as it takes over the presidency of the talks.

Podcast: COP27 and the influence of energy security on a climate agenda

Climate policy experts Anna Mosby and Conway Irwin share expectations for the upcoming conference with EnergyCents podcast, and consider how the recently signed Inflation Reduction Act may shape the United States' presence during this year's talks.

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White House's nature-based solutions roadmap eyes voluntary carbon market

The US released its first strategy to scale up domestic nature-based solutions. According to the roadmap, private sector financing comprises just 11% of all spending on nature-based projects among G20 countries, which amounts to about $14 billion per year.

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Counting down to COP27

Five questions for this year’s conference

Looking ahead to COP27, S&P Global Commodity Insights analysts Roman Kramarchuk and Dan Klein explore pressing questions about this year’s event, from the tension between decarbonization and energy security, to progress on issues like methane emissions and deforestation, and the role of key actor India in the talks.

The first video in the series asks, “Can the world unite around climate right now?” Watch and follow the link for more.

  • Can the world unite around climate right now?

India to push for climate funds, hold ground on fossil fuels policy

India has pledged to push for increased climate finance for developing nations at the COP27 talks in Egypt Nov. 6-18, while holding its ground on using a mix of new fossil fuel production and low carbon energy sources to drive its own economic growth.

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Shades of voluntary carbon markets in Asia-Pacific

Voluntary carbon markets remain predominantly global in nature, with credits being exchanged across the world. But several nations have also developed domestic versions of VCMs with local supply and demand of credits. This infographic shows how diverse these domestic markets are and offers insights on how each nation managed to generate local demand for carbon credits, often by allowing the use of voluntary carbon credits within national or regional compliance schemes.

In the first of a two-parts series, we focus on the Asia-Pacific region, while the second looks at Europe, the Middle East, Africa and the Americas.

Voluntary carbon markets seek clarity, concrete guidelines

While the 2021 UN Climate Change Conference, or COP26, laid out landmark decisions on Article 6 of the Paris Agreement, market participants remain fraught with confusion on the intricacies around Articles 6.2 and 6.4.

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UAE says it's a responsible energy supplier as Saudi Arabia affirms renewables push

The UAE is a responsible energy supplier and will continue to play this role as long as the world needs oil and gas, its president said at the UN Climate Change Conference Nov. 7.

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Insight Conversation

Dr. Richard Sandor, American Financial Exchange

Global carbon markets are evolving rapidly as more countries recognize the need to put a price on carbon and market intermediaries develop trading infrastructure from auction platforms to financial products. Richard L. Sandor, chairman and CEO of the American Financial Exchange, was one of the earliest proponents of environmental products. He was named by TIME magazine in 2007 as one of its "Heroes of the Environment" for his work as the "Father of Carbon Trading."

Sandor spoke with S&P Global Commodity Insights Energy Transition and Carbon Specialist Ivy Yuwei Yin about the evolution of carbon markets, the role of environmental finance in decarbonization and why capital markets are key to financing the net-zero goals of corporations and countries alike.

How far is the world today from the goal of using emissions trading to fight climate change?

I think that we've made enormous progress. The first really active, wide-scale use of emissions trading as a tool to combat pollution was with the acid rain program in the US – The Clean Air Act of 1990. That should be viewed as the baseline. It is important to note that our company participated in the first trades. The Acid Rain program turned out to be the most successful environmental program in history, and even in the first part, it cost about $3 billion a year and generated $120 billion in reductions in medical costs right at the outset. And it resulted in people realizing that emissions trading can play a role in climate change.

China calls for partnership to develop global clean energy supply chains ahead of COP27

China has proposed development of a global clean energy partnership that will support investments and integrate clean energy supply chains to help countries meet their net zero targets.

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Measuring carbon intensity: The first step to emissions reduction and net-zero goals

Everywhere you look right now, companies are talking about emissions abatement, reaching net-zero targets, and buying carbon credits to offset their emissions. But how do organisations figure out exactly how much carbon they are reducing or offsetting?

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