{"id":74692,"date":"2022-11-08T02:10:48","date_gmt":"2022-11-08T02:10:48","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2022\/11\/08\/somber-warnings-as-world-leaders-summit-kicks-off-at-cop27\/"},"modified":"2022-11-08T02:10:48","modified_gmt":"2022-11-08T02:10:48","slug":"somber-warnings-as-world-leaders-summit-kicks-off-at-cop27","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2022\/11\/08\/somber-warnings-as-world-leaders-summit-kicks-off-at-cop27\/","title":{"rendered":"Somber warnings as world leaders\u2019 summit kicks off at COP27"},"content":{"rendered":"

<\/a> COP27 got underway in earnest yesterday with some world leaders <\/strong>pressing calls <\/strong>to action to prevent \u201cclimate catastrophe\u201d:<\/strong> World leaders struck a serious and somber note with warnings of \u201cirreversible\u201d climate chaos and calls for cooperation and shared responsibility on the first day of the COP27 leaders\u2019 summit yesterday. Inaugurating the conference, President Abdel Fattah El Sisi said we are in a \u201cworld of suffering\u201d and called on all countries to assume responsibility to tackle climate change \u201cto the degree that they can\u201d (watch, runtime: 19:50<\/a>).<\/p>\n

One clear message: The status quo can\u2019t continue.<\/strong> \u201cGreenhouse gas emissions keep growing. Global temperatures keep rising. And our planet is fast approaching tipping points that will make climate chaos irreversible,\u201d said UN Secretary General Antonio Guterres (watch, runtime: 10:15<\/a>). \u201cWe are on a highway to climate hell with our foot still on the accelerator.<\/strong>\u201d<\/p>\n

THE GREAT ENERGY DEBATE<\/strong><\/p>\n

Coming under fire? Slow-to-act developed economies: <\/strong>Global leaders have a \u201ccredibility problem\u201d when it comes to taking action on climate change, said former US Vice President and long-time climate advocate Al Gore (watch, runtime: 14:50<\/a>). Developed nations\u2019 continued pursuit of Africa\u2019s gas resources is \u201cfossil fuel colonialism,\u201d said Gore, and will lead to \u201cclimate chaos and bns in stranded assets, especially here in Africa.\u201d<\/p>\n

Africa could be the \u201crenewable energy superpower,\u201d<\/strong> Gore said. 40% of the global potential for renewables is in Africa, he added.<\/p>\n

Rich countries have already turbocharged climate change \u2014 now they need to help <\/strong>emerging markets cope with the fallout.<\/strong> El Sisi called for \u201cconcrete action that has a clear, tangible impact\u201d \u2014 and that helps emerging markets develop their economies. Guterres called for a \u201cclimate solidarity pact\u201d to increase emissions reduction efforts (a rich-country demand), spur the energy transition and help vulnerable countries adapt to climate change. This pact should focus particularly on \u201cphasing out\u201d coal usage everywhere by 2040: \u201cThe two largest economies \u2014 the United States and China \u2014 have a particular responsibility to join efforts to make this pact a reality,\u201d Guterres added.<\/p>\n

But not everyone\u2019s on board with a move away from fossil fuels: <\/strong>\u201cThe UAE is considered a responsible supplier of energy and it will continue playing this role as long as the world is in need of oil and gas,\u201d said UAE President Mohammed bin Zayed Al Nahyan, who took the stage immediately after Guterres (watch, runtime: 7:33<\/a>). Dubai will host COP28 next year. Senegal\u2019s President and Chairperson of the African Union Macky Sall, underscored a similar point, saying: \u201cWe are for a green transition that is equitable and just, instead of decisions that jeopardize our development, including universal access to electricity to which 600 mn Africans remain deprived,\u201d he said (watch, runtime: 07:48<\/a>).<\/p>\n

CLIMATE FINANCE IS THE CARROT-<\/strong><\/p>\n

The success of the drive to put climate at the top of the world\u2019s agenda hinges on the <\/strong>delivery of climate finance<\/strong>, former UN climate chief Patricia Espinosa told Reuters<\/a>. World leaders have been focused on the threat of a global recession and the war in Ukraine, making COP27 \u201ca very important conference\u201d to put climate change back at the top of the agenda, she said.<\/p>\n

That makes finance for adaptation, loss and damage key<\/strong>, Espinosa told the newswire. Will we see rich countries agree at COP27 to set up a new funding facility for this? \u201cI hope so, but I would not be that optimistic about it,\u201d she said.<\/p>\n

A \u201ccommitment to unlocking concessional funding for climate vulnerable countries,\u201d is<\/strong> essential<\/strong>, said Barbados Prime Minister Mia Mottley, speaking at the summit opening (watch, runtime: 13:35<\/a>). \u201cThere is no way that developing countries \u2026 can fight this battle\u201d without this funding, she added.<\/p>\n

Mottley wants the IMF to give the private sector more money for climate projects<\/strong>, reiterating her call<\/a> from last year for the IMF to issue USD 500 bn a year in special drawing rights (SDRs) earmarked specifically for climate finance. SDRs are a kind of international reserve currency or asset designed to act as a supplement to IMF member countries\u2019 reserves, EnterpriseAM<\/a> noted previously.<\/p>\n

Sobering testimony from Pakistan shows what\u2019s at stake: <\/strong>Pakistan needs immediate debt relief and loss and damage compensation to get back on its feet after disastrous floods earlier this year claimed north of 1k lives, caused more than USD 10 bn of damage, and displaced >30 mn people, Prime Minister Shehbaz Sharif said at a joint press conference with Guterres yesterday (watch, runtime: 13:04<\/a>). Climate compensation advocates \u2014 including Egypt climate czar Mahmoud Mohieldin \u2014 have repeatedly called<\/a> for debt-reduction mechanisms and an emphasis on investment to help emerging market climate change adaptation.<\/p>\n

AND THEN THERE ARE STICKS\u2026<\/strong><\/p>\n

The price of carbon needs to more than double to average at least USD 75 \/ ton by 2030 <\/strong>for<\/strong> global climate goals to succeed,<\/strong> IMF Managing Director Kristalina Georgieva told Reuters<\/a> on the sidelines of COP. Without this, \u201cwe simply don't create the incentive for businesses and consumers to shift,\u201d Georgieva added, characterizing the pace of change in the real economy as \u201cway too slow.\u201d In many countries, \u201cthe acceptance of pricing pollution is still low,\u201d said Georgieva. California currently prices carbon allowances at just under USD 30 \/ ton, Reuters notes.<\/p>\n

FUNDING ANNOUNCEMENTS<\/strong><\/p>\n

We saw now grand single- or muti-nation announcement on climate funding yesterday. <\/strong>Instead:<\/p>\n

Saudi Arabia is contributing USD 2.5 bn to its Middle East Green Initiative in the coming <\/strong>10 years<\/strong>, Reuters reports<\/a> Crown Prince Mohammed bin Salman saying yesterday. The initiative \u2014 launched by MbS last year \u2014 aims to reduce CO2 emissions from regional hydrocarbon production by over 60%. KSA previously said it planned to contribute 15% of the USD 10.4 bn needed for the clean energy projects it would run, Reuters notes<\/a>. The Kingdom\u2019s sovereign wealth fund, the Public Investment Fund, is also aiming for net-zero emissions by 2050, MbS added.<\/p>\n

The ticket sizes got smaller and smaller from there:<\/strong><\/p>\n