Welcome to our daily briefing from COP26 in Glasgow. The pace has been relentless, both in the negotiations and at the IETA COP26 Business Hub, where we hosted another 11 events and meetings today.
Across the COP, it was energy day, and we saw a trio of major announcements: the "Global Coal to Clean Power Transition Statement" saw more than 50 countries and sub-national jurisdictions commit to ending the permitting and financing of unabated coal plants. These include Vietnam, Indonesia and South Korea. The Powering Past Coal Alliance was also boosted by the addition of Ukraine, and the Climate Investment Funds revealed that South Africa, Indonesia, India and the Philippines are to be pilot countries in its new Accelerating Coal Transition programme.
So far, more than 150 countries have submitted updated NDCs and 2030 targets, representing over 80% of global emissions, according to the World Resources Institute. There have been improvements to NDCs covering around 63% of emissions, and 82 countries now have net zero targets.
The IEA estimates that all these NDCs, including those that are conditional on climate finance, together with the commitments contained in Tuesday’s Global Methane Pledge, would, if achieved, lead to global temperatures increasing by 1.8 degrees Celsius above pre-industrial levels.
Away from the high-profile announcements, the Article 6 contact group continued to meet on Thursday, and we understand that a new text will be forthcoming overnight.
Negotiators focused on Articles 6.4 and 6.8 today. The discussion on Article 6.4 was longer and a large number of parties requested to speak and even though the meeting ran over, there wasn't enough time to let all of the speakers make their interventions.
The most contentious issue is related to the carryover of both activities and credits from the Kyoto Protocol. Our team noted that while in Article 6.2, the talks have evolved into developed versus developing country Parties, in Article 6.4 the picture is a lot more nuanced.
There are some developing countries that want very strict limits on Kyoto Protocol activities, particularly the Least Developed Countries and the African Group. On the other hand, developing countries that have benefited the most from from the Kyoto Protocol and host a large number of projects – in particular Brazil and the Like-Minded Developing Countries – want to carry over many more credits and activities.
The discussion on 6.8 (non-market approaches) made some progress. Some delegations stressed that this text needs to be given the same weight as the two market-based ones.
Delegates also held very detailed discussions on the functions of the Article 6.4 Supervisory Body, which would replace the CDM Executive Board; our team felt that the discussion of topics such as the gender balance and term limits for members of Body represents a genuine intention to make progress and hopefully find agreement next week.
“Informal-informal” talks were scheduled to end at around 10:30pm, while the co-facilitators got started on the drafting of updated texts, which we expect to see overnight.
IETA will be taking a close look at the new texts and liaising with legal experts in our group to consider how to respond. We'll share the texts with members as soon as we get them.
Thursday at the IETA Business Hub
The day began with a virtual event hosted by CLP, in which a panel of speakers discussed the outlook for Asia’s power sector in driving to a net zero goal.
GIZ hosted a session in the Hub on lessons for developing countries in preparing for Article 6, with specific focus on Tunisia.
IPIECA led two panel discussions on how the oil and gas sector can play a role in driving low-carbon technologies and decarbonisation.
The Eastern Africa Alliance on Carbon Markets and Climate Finance led panel discussions on readiness for Article 6 and how regional partners can best prepare.
IETA held an event at the EU Pavilion on how pricing carbon relates to achieving net zero, with reference to case studies in Poland, Portugal and China.
Norton Rose Fulbright presented a discussion on the role of hydrogen in reaching net zero.
The Federation of Indian Chambers of Commerce and Industry examined the role of the global energy sector in the energy transition.
The final event saw CTX/GEM showcasing its technology to deliver global emissions trading under Article 6.
Friday at the IETA Business Hub
Our Friday programme kicks off at 1030 hrs, with American Carbon Registry looking at opportunities for carbon capture, utilisation and storage technology, and how stakeholders are overcoming barriers to deployment at scale.
At 1200 hrs, IETA will host a session looking at how the EU ETS will be aligned to help achieve the EU’s climate neutrality targets. Speakers from Uniper, Environmental Defense Fund, Vertis and ERCST will attend, and virtual participation will be available here.
At 1330 hrs IETA will host speakers from EDF, Resilient, RWE, Strive by Vertis and Pollination to discuss “What Business Wants from Article 6”. You can watch the event here.
Mercuria will host a session together with senior ministers from Argentina’s Misiones province to look at Misiones’ experience in setting up one of the first subnational REDD+ jurisdictional programmes. This session will start at 1500 hrs.
Our last event of the day is an invitation to all to come and “Meet the Voluntary Carbon Market”. We’ll welcome a variety of speakers in an informal setting to answer questions and share information about the various initiatives.