For UK financial advisers only, not approved for use by retail customers

abrdn’s Cairns: “the goal of ‘keeping 1.5C alive’ as a result of COP26 is extremely unlikely”

Eva Cairns, Head of Climate Change at abrdn, comments:

“The first week of COP26 has delivered some positive announcements on decarbonisation (covering 85% of forests including Brazil which is encouraging), reduction of methane emissions (albeit without Russia, China and India) and access to clean energy by 2030.

“However, there was little detail on clear action plans to achieve goals and no legally binding enforcement mechanisms. India’s Net Zero 2070 commitment is the most important country level upgrade. Modelling based on latest pledges suggests that over 90% of GDP is now covered by net zero pledges and if implemented, would limit warming to 1.9C. But in our view, concrete policy commitments lack credibility for many of the net zero pledges we have seen. We need action plans to half emissions by 2030 and not just provide vague longer-term ambitions.

“This also applies to the $130tn pledged to net zero 2050 by the financial community on Finance Day. Discussions on the climate finance promise of $100bn to the developing world are in progress and expected to be delivered by 2022 based on increased commitments from Japan. Much more is needed to reflect the obligation of the developed world to help mitigation and adaptation in the developing world. It was disappointing that China as the world’s largest emitter (27% of global emissions) and Russia were not represented in person.

“In summary, it is critical to pay attention to what governments do and not what they say, and while we expect a major energy transition to happen, the goal of ‘keeping 1.5C alive’ as a result of COP26 is extremely unlikely.”

Leave a Reply

Your email address will not be published.

Recent Posts

New investors demand greater sustainability expertise from fund managers

March 15, 2022

8 in 10 investors now want or expect a fund manager to upskill in sustainability...

The UK’s impact investment market is worth £58bn, according to new research by the Impact Investing Institute and EY

March 8, 2022

The Impact Investing Institute has released a new report with the first estimate of the...

AXA IM and the AXA Research Fund have joined forces with Paris School of Economics to launch a new Research Chair: “For a successful Energy transition”

March 3, 2022

AXA Investment Managers (AXA IM) and the AXA Research Fund have joined forces with Paris...