COP26 Key Takeaways
On 12 November 2021, the 26th United Nations Climate Change Conference of the Parties (COP26) finally wrapped up after a one-year delay caused by the COVID-19 pandemic. Expectations as well as tension ran high as leaders from close to 200 countries convened at the two-week-long summit to reach global commitments in tackling climate change and keep global warming to 1.5°C.
The summit was deemed to have been successful in pushing the climate action agenda forward by delivering some critical changes requiring government and corporate action, despite certain climate change experts and critics expressing that the resulting Glasgow Pact fell short of the expected deliverables.
Let's take a look at the important outcomes.
Win No. 1: Unprecedented Coal Target
A first-ever explicit COP decision was made to "phase down" coal –
one of the most significant sources of greenhouse gas (GHG) emissions –
as well as fossil fuel subsidies. Although the final text was watered down from the initial "phase out", this is a milestone in curbing unabated coal power. More than 40 countries also signed up to the new Global Coal to Clean Power Transition Statement, which aims to accelerate and broaden the phasing out of coal use, and close to 200 countries supported the ending of inefficient fossil fuel subsidies.
Win No. 2: Global Methane Pledge
Methane, a more potent GHG than carbon dioxide, was addressed in the overall pact for the first time. More than 100 countries signed up to support the US and EU-led Global Methane Pledge to cut emissions of methane by 30% by 2030 from 2020 levels.
Win No. 3: Carbon Trading Rules
COP26 achieved the long-awaited finalisation of a set of international carbon trading rules under which carbon markets will operate. With the rules, companies will gain more clarity and the standardisation will help reduce emissions.
Win No. 4: Deforestation
Win No. 5: Tougher Climate Plans
Countries are required to re-look into their nationally determined contributions (NDCs) and ensure they are robust enough for 2030, as well as present more ambitious climate pledges for 2022. Governments also agreed on a new set of transparency rules on making and delivering their climate plans, with clearer information on GHG emissions by 2024.
More Needs to Be Done on Climate Finance
Disappointingly, on the issue of climate funding, developed nations failed to meet in full earlier promises to provide US$100 billion in climate funding for developing nations by 2020. However, on the issue of "loss and damage", there is a recognition for the first time that countries affected by climate catastrophes will get help to rebuild and respond to climate change impacts through the establishment of a proper mechanism. That is the work for COP27 in Egypt next year.
Where Does Malaysia Stand?
Malaysia has updated its NDC to reduce its unconditional GHG emissions intensity against its GDP by 45% by 2030 from 2005 levels and to achieve net zero by 2050. Representing Malaysia at COP26, the Minister of Environment and Natural Resources, the Honourable Dato’ Sri Tuan Ibrahim Tuan Man said Malaysia would be launching a carbon pricing policy in phases as well as aim for a 31% capacity for renewable energy by 2025 and 40% by 2035 in the national grid. The Malaysian government is also supporting the Global Methane Pledge and the Glasgow Leaders' Declaration on Forests and Land Use. Other measures include preserving 50% of the country's forests, increasing recycling rate to 40% by 2025 and implementing zero waste at landfills.
RTZ Achievement on the Sidelines of COP26
The Race to Zero (RTZ) campaign, the largest-ever alliance to rally leadership for a zero-carbon recovery, has grown to 733 cities, 31 regions, 3,067 businesses, 173 of the biggest investors, and 622 Higher Education Institutions – all committed to achieving net-zero-carbon emissions by 2050 at the latest. Collectively these actors now cover nearly 25% global CO2 emissions and over 50% GDP. This is certainly a noteworthy step in the right direction.
The Journey Ahead
According to the European Commission, the progress made at COP26 "resulted in the completion of the Paris Agreement rulebook and kept the Paris targets alive, giving us a chance of limiting global warming to 1.5 degrees Celsius." The International Energy Agency (IEA) forecast that if all the COP26 pledges were successfully implemented, global temperatures would rise by 1.8°C by 2100, which is still above the Paris target. Post-COP26, the key question would be whether countries can follow through on the pledges and plans. One thing we can all agree on is, there is a lot to be done and time is running out.
Here at the BMCC, we remain committed to the climate change agenda by engaging Malaysian businesses to take action through the BMCC Climate Action Pledge initiative. Find out more about the pledge and sign up below.
