If you have missed any of COP26, we have summarised some of the latest news so far. Stay up to date with the latest updates across the energy sector with our Daily Bulletin. In addition, next week’s Energy Spectrum will feature full analysis and commentary on the COP26 announcements. To find out more about these publications, please contact Robert Buckley on r.buckley@cornwall-insight.com.
COP26 declaration aims for 100% net zero emission vehicle sales by 2035
On Wednesday 10 November, the Department for Transport and BEIS published the COP26 declaration on accelerating the transition to 100% zero emission cars and vans, signed by vehicle manufacturers, civil society, investors, national governments, states, regions and cities, all committed to work towards 100% zero emission vehicle sales by 2035 at the latest in leading markets and 2040 globally. The UK, Scotland, Wales and Northern Ireland are included among the signatories. Additionally, the declaration says signatories will support efforts to achieve the road transport breakthrough announced by world leaders which aims to make zero emission vehicles the new normal by making them sustainable, accessible, and affordable in all regions by 2030.
Five companies join forces to slash 1Gt of emissions annually by 2025
At COP26, the Bank of America, Boston Consulting Group, Unilever, McKinsey & Company and Bayer made an announcement to join forces towards creating an investment accelerator, aggregating corporate demand for 1Gt of emissions from natural climate solutions (NCS) reductions and removals per year by 2025. The World Economic Forum says under current prices the estimated investments are over $10bn, with the initiative supported by the Natural Climate Solutions Alliance convened jointly by the World Economic Forum and World Business Council for Sustainable Development. In the Monday 6 November announcement, the five companies invited corporate leaders to join them as they roll out a campaign to increase investments into nature.
PM urges countries to make ambitious commitments at COP26
At the halfway point of the COP26 climate summit, on Sunday 7 November, the Prime Minister Boris Johnson urged countries make further progress on commitments to address climate change in the week ahead at the COP26 summit. The PM said: “There is one week left for COP26 to deliver for the world, and we must all pull together and drive for the line. We have seen nations bring ambition and action to help limit rising temperatures, with new pledges to cut carbon and methane emissions, end deforestation, phase out coal and provide more finance to countries most vulnerable to climate change. But we cannot underestimate the task at hand to keep 1.5˚C alive. Countries must come back to the table this week ready to make the bold compromises and ambitious commitments needed.”
Government outlines priorities of COP26 Energy Transition Council
On Thursday 4 November, BEIS issued information on the 2022 strategic priorities of the Energy Transition Council (ETC). The overall purpose of the ETC will be to enable a dialogue between countries that require support for their energy transition on the one hand, and the major international actors offering support on the other, to find, coordinate and implement solutions more rapidly. Following feedback from ETC countries and ETC partners, it has been decided that the ETC will continue after COP26, at least until COP30 in 2025. During this time, the ETC will engage in priority areas including integrated energy planning, the coal and fossil-fuel transition, and work in energy efficiency and distributed renewable energy.
190 countries and organisations agree to phase out coal power at COP26
On Wednesday 3 November, BEIS announced that a 190-strong coalition has agreed to end support for new coal power plants and phase out coal power. BEIS says by the end of this year, all new public finance for unabated coal power plants will have stopped and that 23 new countries have committed to phase out and not invest in or build new coal power for the first time. The UK also launched its Global Coal to Clean Power Transition Statement that commits nations to rapidly scale up deployment of clean power generation, end all investment in new coal power generation internationally and domestically, make a just transition away from coal power, and phase out coal power in economies in the 2030s for major economies and 2040s for the rest of the world. BEIS also says that on the same day 28 new members have signed up to the Powering Past Coal Alliance. On the same day the UK government launched a new International Just Transition Declaration, with 13 countries having signed so far as well as the EU Commission and UK.
UKGBC announces UKGBC Scotland at COP26
The UK Green Building Council (UKGBC) announced the formation of a new network based in Scotland to drive and support the sustainability of the Scottish Built Environment on Thursday 4 November. UKGBC Scotland will develop a programme focused on the progressive Scottish policy environment and industry sectors with scope to respond to the unique opportunities and needs posed by the Scottish Government’s targets for the transition to a net zero built environment by 2045. UKGBC states UKGBC Scotland will convene a diverse membership of built environment organisations and accelerate the transition to a more sustainable built environment by developing regional specific guidance, stimulating Scottish innovation, and showcasing Scottish solutions. Moreover, UKGBC Scotland will call for ambitious commitments, progressive policy, and stronger standards.
UK’s MOBILIST programme receives £66mn funding boost at COP26
At COP26 on Wednesday 3 November, the Mobilising Institutional Capital Through Listed Product Services (MOBILIST) – the UK’s largest programme to mobilising large scale investment through publicly listed markets – received a £66mn funding boost, according to the Foreign, Commonwealth & Development Office (FCDO). It states that the additional funding will be used to support new products as they are developed through open competition to support people in developing countries better access international capital markets to fund the businesses, technology, and infrastructure they need to manage climate change and boost growth. The Chancellor of the Exchequer announced five competition finalists and confirmed that the MOBILIST competition has an in-principle decision to make several contributions, such as to invest up to £25mn in the Thomas Lloyd Energy Impact Trust at the time of IPO and subject to completion of due diligence.
WBCSD calls for Corporate Determined Contributions (CDCs) at COP26
On Wednesday 3 November, the World Business Council for Sustainable Development (WBCSD) called for the development of a new Corporate Determined Contributions (CDCs) mechanism to capture private sector progress in the global climate recovery. The organisation has also released its Business Manifesto for Climate Recovery in which it details twelve action priorities framed around the imperatives to reduce, remove, and report greenhouse gas emissions – stating that each action priority has associated policy requirements which are global in nature and applicable to policymakers in multilateral systems, and, where relevant, to national policymakers.
