COP26, held in the first weeks of November in Glasgow, put climate change at the center of the political, business and societal agenda.

The urgent need to keep 1.5°C alive was not yet fully translated into national commitments, with new NDCs and 2030 targets leading to +2.4°C (vs +2.7°C with current policies). Long-term net zero pledges, including India’s new 2070 target, could limit global average temperature rise to +1.8°C. Nevertheless, several commitments were seen as first-timers (e.g.: methane pledge, ending deforestation, coal phase down), as well as consensus on Article 6.

Financing the transition has gained increased momentum. The private sector mobilized for climate finance – GFANZ with US$ 130 tn AuM – while there is a need to monitor the implementation phase. Will it mean that financial institutions will divest from carbon intensive sectors rather then financing their transition? At the same time, public funding could play a complimentary role, including through matching funds and reducing risk exposure.

COP26 saw an unprecedented business presence. Coalitions were announced in order to create low carbon products marketplace and provide demand signals. Low carbon H2 gained increased attention to promote deployment regarding the full value chain. On the other side, the 100% zero-emissions vehicle sales pledge underdelivered, lacking major automakers and countries.

Finally, civil society is increasingly vocal. Young, indigenous, black people and women reinforced the demand for an urgent and just transition. And adaptation is set to be at the center stage of COP27 in Egypt.

Long read – slides presentation

Short reads –  key announcements from the 1st and 2nd week