CP Daily: COP26 Special

Published 01:40 on November 14, 2021  /  Last updated at 09:40 on November 15, 2021  /  Newsletter  /  No Comments

Below is a summary of Carbon Pulse's coverage of COP26, including the daily roundups of various announcements and developments during the two-week summit.

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Below is a summary of Carbon Pulse’s coverage of COP26, listed in reverse chronological order. Also included lower down are our daily roundups of various announcements and developments during the two-week summit. Subscribe here to our free daily newsletter CP Daily.

HOW IT ENDED

Governments approve Article 6 emissions trade deal after overtime compromises

UN negotiations on a Paris Agreement Article 6 rulebook for international emissions trade made substantial strides during overtime at COP26 on Saturday, with officials lining up text that dilutes ambition upfront but sets firm long-term rules as governments battled on other issues.

UN talks compel nations to revise GHG pledges next year, shy away from coal exit

UN climate talks closed late Saturday by tasking nearly 200 nations to revise their emissions pledges within a year to “keep alive” the Paris Agreement’s 1.5C global warming goal, but the deal failed to commit to a faster coal phaseout.

Reactions to the Glasgow Climate Pact and a summary of other major announcements

Here are selected expert reactions to the Glasgow Climate Pact, which was concluded at the UN COP26 summit late Saturday, as well as a summary of the major announcements made during the two-week talks.

WEEK 2

UN talks enter final phase as campaigners raise concerns about voluntary offsetting

UN negotiations over the shape of international emissions trade were set to go into an extra day amid accusations on Friday that the current text could result in a net increase in global emissions by allowing some carbon offsets to be traded without being accounted for under NDCs.

REDD+ moving ahead of Article 6, but questions remain on approach, integrity

REDD+ outcomes approved and tracked by the UN are moving ahead of Article 6 negotiations under the Paris Agreement, although others are pursuing alternative approaches or calling for restrictions to ensure the environmental integrity of global carbon trading.

Sectoral commitments slightly narrow 2030 emissions gap, report finds

Key sectoral pledges regarding methane, coal, forestry, and transport, will close the emissions gap between a 1.5C pathway and stated 2030 climate targets by around 9%, or 2.2 billion tonnes of CO2e, an update on global emissions trajectories from Climate Action Tracker (CAT) said.

Brazil seen likely to compromise on Article 6 emissions trade accounting

UN negotiations on Article 6 rules to govern international emissions trade took a step forward on Thursday when Brazil appeared to accept a compromise on accounting rules, two sources close to the process told Carbon Pulse.

Egypt, UAE confirmed as next UN climate summit hosts

Egypt was confirmed as the next host of the UN climate summit for late 2022, with the United Arab Emirates selected to host the meeting for the following year, current COP26 President Alok Sharma announced on Thursday.

ANALYSIS: Opposition to EU’s border measures eases as ‘penny drops’, but tough road lies ahead

Countries facing exposure to the EU’s planned carbon border adjustment mechanism (CBAM) are progressively easing their opposition as they envisage laying out comparable policies to avert carbon leakage, but the bloc still faces a difficult challenge in implementing and defending the divisive measure or selling it to its major trading partners.

‘Game-changing’ China-US declaration promises work on near-term GHG curbs

China and the US pledged stronger cooperation to curb CO2 and methane emissions in the 2020s in a joint statement late on Wednesday, a move some experts said drastically boosted the chances of a good COP26 deal in Glasgow and more climate ambition within the next few years.

Ukraine grapples with carbon pricing as pledges risk running hollow

The launch of a Ukrainian carbon market appears uncertain as the country examines several options to put an adequate price on emissions while averting political opposition and the EU’s border measures.

Ghana strikes Article 6 cooperation deals with Mercuria, Sweden

Trading house Mercuria has signed an MoU with Ghana to help operationalise Article 6 of the Paris Agreement, including driving project development in a number of sectors across the economy

Seeking Article 6 breakthrough, governments consider leaving emissions beyond pledges to the voluntary market

Negotiators working on rules to govern international emissions trade under Article 6 of the Paris Agreement are considering a fresh compromise to help break a deadlock over double counting safeguards that has lasted for nearly six years.

AirCarbon, Rio de Janeiro to establish Brazilian VER marketplace

AirCarbon Exchange (ACX) and the Rio de Janeiro government on Tuesday announced plans to launch a voluntary emissions reduction (VER) marketplace in Brazil next year as the country appears set to ramp up its carbon market activity.

Democratic Congressional delegates tout US climate leadership amid domestic headwinds

A collection of Democratic lawmakers, led by House Speaker Nancy Pelosi, arrived at the COP26 talks on Tuesday to rekindle trust in US climate leadership, but a bleak legislative and policy landscape at home and poor track record in global cooperation are raising doubts.

VCM market diverges on demand for ‘Paris-adjusted’ carbon credits

The voluntary carbon market has varied views over demand for correspondingly adjusted carbon credits, though many only expect limited take-up from a minority of corporate buyers seeking high quality units.

WCI jurisdictions to explore possible carbon market alignment with New Zealand

California, Quebec, and New Zealand on Tuesday signed a declaration promising closer collaboration on climate policy, with the WCI jurisdictions looking into greater alignment with the Pacific Island nation on their respective cap-and-trade programmes.

Glasgow faces credibility gap with climate efforts falling short, report warns

The Glasgow climate conference faces a credibility, action, and commitment gap with the world heading for end of century warming of over 2C, even when taking into account the recent spate of net zero pledges by key economies, a report released on Tuesday said.

Germany puts up €10 mln to start buying credits under new Paris market mechanism

Germany said on Tuesday that it will spend €10 million to buy carbon credits under the new Paris Agreement carbon market mechanism once Article 6.4 rules are agreed.

North, Latin American governments reboot alliance to forge closer ties on carbon pricing

Twelve North and Latin American national and sub-national governments on Monday signed a new declaration promising to boost their carbon pricing integration, rebooting an existing framework with smaller jurisdictions keen to learn more.

New ADB carbon fund to source Article 6 credits for financiers

The Asian Development Bank on Monday launched a new fund that will seek to drive climate action in the Asia-Pacific by sourcing carbon credits eligible under the Paris Agreement for investors.

WEEK 1

Ministers face uphill task as officials fail to advance Article 6 talks

The first week of negotiations over Article 6 rules to govern international emissions trade under the Paris Agreement ended on Saturday without agreement, leaving ministers with unwieldy documents to work on when they convene at COP26 in Glasgow on Monday.

New VCM governance body open to working with compliance markets

The new Integrity Council for the Voluntary Carbon Markets (IC-VCM) is focused on advancing its role as a governing body for the entire voluntary marketplace, but is also open to working with jurisdictions and organisations that operate compliance markets, senior IC-VCM officials said in Glasgow in Friday.

US envoy Kerry praises breakthrough deals as “genuine progress”, not distraction

US climate envoy and COP veteran John Kerry gave assurances on Friday that the wave of climate commitments announced during the first week at the Glasgow UN conference will result in “real money being put on the table” and allow for concrete action to avoid catastrophic climate change.

US eyes less than $100/tonne DAC technology to hit net zero

The US Department of Energy (DOE) on Friday announced a goal to slash the cost of direct air capture (DAC) to under $100/tonne by 2030, saying otherwise nations will not stay within the bounds of Paris Agreement temperature limits.

Article 6 emissions trade awaits breakthroughs as new text ordered

UN negotiations to finalise a Paris Agreement Article 6 rulebook on international emissions trade ploughed on through Wednesday, with officials ordering a second text to be crafted overnight.

Poland keeps 2049 coal exit date despite pledge, market projections

Poland’s climate minister Anna Moskwa on Thursday confirmed that her country has no intention to bring forward its 2049 coal exit date despite signing on to a global pledge to consign the fuel to history.

Steel decarbonisation rises on int’l agenda as border measures eyed

High-level initiatives promoting ‘near-zero steel’ at COP26 talks this week have helped shift discussions away from technology-agnostic emissions targets, with a growing club of supportive nations showing signs of a parallel push to impose border measures on dirtier producers.

Paris target within reach as Glasgow pledges chart path to 1.8C of warming –IEA

The world is on track to limit warming to 1.8C this century as updated national pledges and joint commitments to slash methane emissions ratchet down GHG projections, the IEA said on Thursday, the first time the Paris Agreement goal has come within reach.

Papua New Guinea joins Australia’s IPCOS offset scheme

Papua New Guinea on Thursday became the second nation to join Australia’s Indo-Pacific Carbon Offset Scheme (IPCOS), which will primarily deliver credits to private-sector voluntary buyers.

Carney defends voluntary carbon market amid protests on offset ‘scams’

UN climate envoy Mark Carney insisted carbon credits could play a role in corporate climate action on Wednesday, despite protestors disrupting a COP side event seeking to establish credible offsetting practices and denouncing commitments set out by a coalition of hundreds of banks.

Vulnerable countries criticise net zero plans for moving goalposts, emphasising undeveloped tech

Several developing countries have taken aim at the plethora of public and private net zero plans that rely on new technologies in the future to produce negative emissions while continuing to emit today.

Voluntary carbon market prospects over-hyped, analysts say

Estimates that the global voluntary carbon market could be worth $100-180 billion in 2030 are overly optimistic, with actual volumes and prices likely to stay well below the forecasts made by the private-sector Taskforce on Scaling Voluntary Carbon Markets (TSVCM), a report said on Wednesday.

ADB launches initiative for Indonesia, Philippines to begin transition from coal

The Asian Development Bank (ADB) launched at COP26 in Glasgow on Wednesday a partnership with Indonesia and the Philippines to help wean the two key Southeast Asian economies from their reliance on coal-fired power.

New US regulations seek to bolster credibility of Global Methane Pledge

The US Environmental Protection Agency (EPA) proposed new rules Tuesday that would help cut methane emissions from the oil and gas sector, hours before the US and EU-led Global Methane Pledge was formally unveiled at COP26.

Over 100 forest nations pledge to end deforestation by 2030

Over 100 forest-rich nations have committed to “halt and reverse forest loss and land degradation” by the end of the decade, with the action set to be funded by almost £14 billion in public and private sources, the UK is set to announce at the COP26 summit in Glasgow on Tuesday.

DAILY ROUNDUPS

Roundup for Day 10 – Nov. 11

Climate talks in Glasgow carry on, with negotiators having just two more full days to agree on texts before entering the more or less obligatory overtime. Check in here for the latest news and updates throughout the day.

Roundup for Day 9 – Nov. 10

Midway through the second week of COP26, and much is still left to be done. We follow the latest developments here and update continually throughout the day.

Roundup for Day 8 – Nov. 9

It’s Science Day in Glasgow, while negotiations carry on under the guidance of ministers appointed by the UK COP26 Presidency.

Roundup for Day 7 – Nov. 8

Negotiators at COP26 in Glasgow enter the second week of the talks, with hopes of further progress as ministers get involved. We are tracking developments here.

Roundup for Day 5 – Nov. 5

Delegates at COP26 in Glasgow are nearing the end of the first week, but with everything still in play on issues such as the future of carbon markets.

Roundup for Day 4 – Nov. 4

Day 4 of COP26 in Glasgow is Energy Day, while delegates continue technical negotiations on all issues in closed sessions.

Roundup for Day 3 – Nov. 3

With heads of state now largely gone, day 3 of COP26 in Glasgow turns its attention to finance while officials get busy in closed-session technical negotiations.

Roundup for Day 2 – Nov. 2

Heads of state are still delivering national statements at Day 2 of COP26 in Glasgow, while a full programme of side-events is now underway and technical negotiations on agenda items go on behind the scenes.

Roundup for Day 1 – Nov. 1

The long awaited, already once postponed COP26 UN climate talks have finally gotten underway in Glasgow. In our daily running blog, Carbon Pulse will report updates as they happen.

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