COP27
DEMYSTIFIED
Unpacking the Climate Pact
Key takeaways for Industry Associations & Professional Bodies.
Our summary on the highlights and breakthroughs from COP27, especially for associations.
Catch up on our post-COP26 discussion and what the Glasgow Climate Pact means for you.
​
Participants included Peter Betts CB, CBE
Strategic Advisor at ECF, WTW, CCC, IRENA, Nathan Bennett from RenewableUK, Emma Piercy from Food and Drink Federation, Mike Spicer from PolicyDepartment Ltd and Sophie House CAFA's COP26 Policy lead.
Facilitated by Nik Gowing from Thinking the Unthinkable, our goal was to demystify the outcomes of talks and what this means for Associations. With collaboration and action being two of the major outcomes, Associations have a critical role to play to drive policy, ensure transparency, forge cross sector alliances and ensure future skills.
Latest News- 13 November 2021
Historic moment as COP26 agreement adopted
After days of difficult and lengthy negotiations, the COP26 agreement has finally been adopted. A day later than scheduled, the announcement brings to a close what is widely seen as the most crucial climate summit of our time.
The final text includes key language on ‘phasing down’ fossil fuels. This is less ambitious than an earlier draft which called for ‘phasing out’ but still an historic first to include in an agreement. Another notable inclusion is the request that nations should return in 2022 with more ambitious pledges for emissions cuts by 2030. But developing countries are unhappy that the text contains little on compensation from wealthy nations for loss and damage due to climate change.
While many experts and leaders welcomed the progress made with this agreement, they lamented the last-minute scaling back of ambitions on coal. Countries must now take the actions that they have promised, and in particular increase the flow of financial support to developing countries.
Commenting on the development, CEO of CAFA Alison Heppenstall said:
"While the last-gasp change on coal is disappointing we should recognise the progress that this deal represents. It wasn’t easy to reach and the text on fossil fuels, though watered down, is still significant. But the success of COP26 must be measured by the change it inspires in communities. Governments may need an extra year to strengthen their emissions targets but as associations, we know our time to act is now. In the UK alone, around 80% of people belong to a membership group. The positive influence we can bring to the race to zero is enormous. CAFA will support associations around the world play their full role as champions of climate action."
.png)
Key Developments 12 November 2021
Negotiations enter last stretch, pledge to end the sale of new fossil fuel cars by 2040 and alliance launched to stop future oil and gas production
-
The new draft agreement drawn up on the last day of COP26 has watered down commitments to end the use of fossil fuels. A final deal will require the unanimous consent of nearly 200 countries that signed the Paris agreement.
-
A coalition of 24 countries and several leading car firms have agreed to end the sale of new fossil fuel cars by 2040. Nations with large car industries such as the US, China, Japan and Germany remain absent from the deal.
-
Several countries joined the Beyond Oil and Gas Alliance, which launched on Thursday, promising to stop future oil and gas production within their borders. So far no significant oil producing nations, including the UK, have signed up.
COP26 Day 12 - 10 November 2021
New initiative launched to establish ‘green shipping’ corridors
Twenty countries have agreed to establish ‘green shipping corridors’, covering both ports and vessels along which ships can travel burning zero-emissions fuels. The signatories to the initiative, known as the Clydebank Declaration, commit themselves to develop technology, expertise and port infrastructure as part of a strategy to decarbonise the entire industry by 2050.
​
Shipping emits over a billion tonnes of CO2 into the atmosphere each year, accounting for 2.9% of all human-made emissions. Under a business-as-usual scenario, that figure could double by 2050. The aim of the declaration is to support the establishment of at least 6 green corridors by the middle of this decade, while aiming to scale activity up in the following years. Initial analysis has identified two promising candidates: the iron ore route from Australia to Japan, and container shipping from Asia to Europe. The latter is currently responsible for more greenhouse gas emissions than any other route.
COP26 Day 12 - 12 November 2021
UK pledges £27.5m to support cities targeting net zero
The UK government has announced £27.5 million in funding over the next four years for a new Urban Climate Action programme (UCAP). The initiative will support cities and regions in developing countries to take climate action. It will help them implement climate action plans to become carbon neutral by 2050 and prepare low-carbon infrastructure projects to reduce emissions.
​
By 2050, 1.6 billion people living in cities will be regularly exposed to extremely high temperatures. Many of these will be vulnerable to sea level rises and coastal flooding. The world’s urban buildings are responsible for around 40% of global emissions and decarbonising the built environment is key in combating climate change. To date 1,000 cities and regions representing over a fifth of the global urban population have committed to reducing their emissions to net zero by 2050.
COP26 Day 12 - 12November 2021
$US1.2 trillion in real estate assets under management committed to halving emissions by 2030
The Race to Zero campaign announced a breakthrough in the real estate sector. US$1.2 trillion in real estate assets under management are now committed to halving emissions by 2030, along with 20% of architects and engineers. Over 100 SME construction companies across 10 countries have also joined the campaign. Race to Zero is a global alliance of non-state actors who are committed to halving emissions by 2030 and achieving net zero emissions by 2050 at the very latest.
​
Race to Zero signatories to are required to publish their action plans for delivering against their commitment annually. The real estate asset management companies will need to bring their property portfolio to net zero carbon. This will help grow demand for low-emission buildings and construction material and drive emission reductions.
Latest News- 11 November 2021
US and China announce surprise agreement to work together on cutting emissions
The world’s two biggest emitters of carbon dioxide unveiled on Wednesday a joint declaration that would boost cooperation on emissions cuts that are needed in the next 10 years to stay within 1.5C.
The agreement calls for ‘concrete and pragmatic’ regulations in decarbonisation, reducing methane emissions and fighting deforestation. The two countries’ leaders are expected to hold a virtual meeting as early as next week.
​
The unexpected announcement that the US and China would work together to tackle climate change has been broadly welcomed by politicians and activists. But experts warned that concrete action must be taken to deliver on the promises.
​
Commenting on the development, CEO of CAFA Alison Heppenstall said:
‘A meaningful, global agreement at COP26 isn’t possible without the world’s biggest countries committing to change. So the US-China pact must be welcomed. Not just as a positive step in itself but because it could tip the balance for other nations. Actions are what matter but this augurs well for the last days of the conference.’
.png)
Key Developments 10 November 2021
First draft of COP26 agreement published, latest analysis shows world heading for 2.4C warming and Barack Obama’s COP26 speech
-
UK PM urges nations to ‘pull out the stops’ to curb global warming as the draft agreement setting out how countries will cut emissions to avoid warming above 1.5C is published. It will now have to be negotiated and agreed by those countries.
-
New national pledges to cut greenhouse gases by 2030 would lead to around 2.4C of global warming by 2100. The Climate Action Tracker group said that countries’ climate plans for the next decade are inconsistent with long-term net zero targets.
-
Barack Obama arrived at the start of the crucial second week of COP26. In a speech to delegates he said the world must settle for compromise and urged young people to pressure their leaders to do more to combat climate change.
COP26 Day 9 - 10 November 2021
28 companies pledge to accelerate use of decarbonised hydrogen
The World Business Council for Sustainable Development (WBCSD) and the Sustainable Markets Initiative (SMI) announced on Tuesday a new initiative to accelerate the development of the hydrogen market. Pledges across demand, supply and financial or technical support have been made by 28 companies representing different sectors from mining to energy, vehicle and equipment manufacturers, and financial services.
​
On the demand side, the pledges focus on replacing grey hydrogen. ‘Grey’ refers to the method of production and is the most used. Some greenhouse gases are released in this process. This initiative would reduce carbon dioxide emissions by more than 14 million tons a year. On the supply side, the pledges would avoid about 190 million tons a year of CO2 emissions if it replaces grey hydrogen, natural gas for industrial heat and petroleum fuels in transportation. A stable investment framework will accelerate the deployment of clean hydrogen, creating numerous opportunities for employment and economic development.
COP26 Day 9 - 10November 2021
Solar Investment Action Agenda launched
On Tuesday the World Resources Institute (WRI), in partnership with the International Solar Alliance (ISA) and Bloomberg Philanthropies, launched a Solar Investment Action Agenda. The aim of the initiative is to identify opportunities for scaling up solar energy and reach ISA’s goal of mobilizing US$1 trillion by 2030. The Action Agenda and Solar Investment Roadmap that will follow in 2022 will help governments and investors expand solar energy for households, electrical utilities and industry.
Huge growth and investment in solar generation capacity will be required to meet global climate and development goals. Scaling up solar deployment will provide more people with access to clean electricity, create jobs, improve human health, and advance gender equality. In addition, clean electricity from solar can meet growing demand across a range of end uses, including buildings, transport and agriculture. Next generation solar technologies are critical for enabling the industrial sector to decarbonise.
COP26 Day 9 - 10November 2021
UK backs new small nuclear technology with £210 million
The UK government has committed £210 million to support the development of new nuclear reactors, matched by private sector funding of over £250 million. Each small modular reactor (SMR) could be capable of powering 1 million homes. In contrast to most nuclear power plants which are designed from scratch, SMRs are meant to be mass-produced and therefore more cost-effective. The UK government is also trying to make nuclear cheaper with legislation called the Nuclear Energy Financing Bill. It would establish a new financing model for nuclear projects, reducing build costs and ultimately energy bills.
Nuclear power produces very few greenhouse gas emissions and offers a sustained stream of electricity. For this reason, some argue that nuclear power has an important role to play to help limit dangerous climate change by helping reduce dependency on volatile fossil fuels. The UK is investing up to £1.7 billion to bring at least one large-scale nuclear project to a final investment decision, and a new £120 million Future Nuclear Enabling Fund to provide targeted support towards further nuclear projects. New nuclear energy projects are expected to create good, high-skilled jobs.
COP26 Day7 - 08 November 2021
Billions pledged to help protect nature as several initiatives launched
Bringing together 45 governments, the UK has launched a nature action agenda committed to urgent action and investment to protect nature and shift to more sustainable ways of farming. The UK has pledged a £500 million package to help protect five million hectares of rainforests from deforestation. This is part of its commitment to spend at least £3 billon of international climate finance on nature and biodiversity. The funding will create thousands of green jobs in sustainable agriculture and forestry throughout rainforest regions and generate £1 billion of green private sector investment to tackle climate change around the world.
​
In the private sector almost 100 high-profile UK companies made a joint commitment to halt and reverse nature decline and deliver ‘nature positive’ operations by the end of the decade. Major food and clothes retailers including M&S, Tesco, Sainsbury’s and Waitrose have pledged to cut their environmental impact across climate, deforestation and nature in a ‘Retailers Commitment for Nature’ with WWF.
Key Developments 08 November 2021
UK pledges new funding for climate adaptation, large climate demonstrations take place across the globe and can recent pledges hold warming below 2C?
-
The UK has announced £290m of new funding to help poorer countries cope with climate change impacts. This comes as talks turn to adaptation of climate impacts and addressing loss and damage.
-
About 100,000 people marched in Glasgow on Saturday, while hundreds of climate change demonstrations took place in the rest of the UK and around the world. Demonstrators are demanding bolder and more radical action on the climate crisis.
-
The International Energy Authority says pledges made at COP26 so far could potentially hold warming to 1.8C. But climate experts and UN negotiators warn that government policies still put the world on track for 2.7C of warming.
COP26 Day7 - 08 November 2021
Billions pledged to help protect nature as several initiatives launched
Bringing together 45 governments, the UK has launched a nature action agenda committed to urgent action and investment to protect nature and shift to more sustainable ways of farming. The UK has pledged a £500 million package to help protect five million hectares of rainforests from deforestation. This is part of its commitment to spend at least £3 billon of international climate finance on nature and biodiversity. The funding will create thousands of green jobs in sustainable agriculture and forestry throughout rainforest regions and generate £1 billion of green private sector investment to tackle climate change around the world.
​
In the private sector almost 100 high-profile UK companies made a joint commitment to halt and reverse nature decline and deliver ‘nature positive’ operations by the end of the decade. Major food and clothes retailers including M&S, Tesco, Sainsbury’s and Waitrose have pledged to cut their environmental impact across climate, deforestation and nature in a ‘Retailers Commitment for Nature’ with WWF.
COP26 Day 7 - 08 November 2021
Cost of climate crisis in developing world to far exceed aid pledged by richer nations
A UN report finds that the cost of adapting to climate change in the developing world could be up to $300bn per year by 2030 and $500bn by 2050. This is between five and 10 times higher than the financial aid richer countries are giving in support. Current levels of climate finance, covering both mitigation and adaptation, are not expected to reach the pledged $100bn a year until 2023, although US envoy John Kerry recently suggested that it might be available by 2022.
The impacts of climate change, such as wildfires and floods, will increase even if warming is limited to 1.5C. UNEP, who produced the report, says that funding is required now and needs to be much more ambitious to significantly reduce damages and losses from climate change. The findings come ahead of Monday’s COP26 talks on adaptation, loss and damage. Several groups, including the Climate Vulnerable Forum block of nations, have said that what happens today could ‘make or break’ the deal. The UK government’s £290m pledge to developing countries is an attempt to get the day off to a positive start.
COP26 Day 7 - 08 November 2021
New report finds that low-carbon solutions are becoming competitive in many sectors of the economy.
UK-based sustainability consultants Systemiq found that low-carbon solutions are reaching competitiveness across electricity and road transport. Their report, The Paris Effect – COP26 Edition suggests that the next decade will see disruptive trends in many sectors including trucking, food and agriculture, aviation and shipping, with all sectors capable of implementing competitive green solutions by 2030. This is part of a wider trend of green technologies approaching tipping points where they become cheaper than fossil fuels.
The findings show that investment in new carbon-heavy infrastructure is now too risky, not just for the climate, but could put economies in danger of falling behind. But the report notes that although progress is accelerating on some fronts, the pace of change in other sectors is too slow. Energy efficiency, heat pumps and direct carbon removal, along with financing for nature-based solutions, are all identified as policy and investment targets.
Key Developments 05 November 2021
More commitments to cut use of fossil fuels including coal and COP26 pledges could limit warming to below 2C
-
Over 20 countries and banks have committed to halt all financing for fossil fuel development overseas. Spending will be diverted to green energy instead from 2022. Big fossil fuel funders, China and Russia, have shunned the initiative.
-
47 countries pledge to phase out coal but significant users including China, India and the US did not sign up. The announcement comes as CO2 levels reported to have bounced back almost to pre-pandemic levels.
-
Latest pledges made at COP26 could limit warming to 1.9C, according to one study. They would have to be fully implemented along with existing targets. The analysis showed that to get closer to 1.5C large emission cuts must happen this decade.
COP26 Day 5 - 05 November 2021
UAE launches $1 billion global platform to accelerate renewable energy
The UAE and the International Renewable Energy Agency (IRENA) announced the launch of a global climate finance facility called the Energy Transition Accelerator Financing (ETAF) platform. The UAE committed US$400 million in funding towards the platform’s goal of securing a minimum of US$1 billion in total funding. Through co-financing, ETAF will aim to “mobilise” an additional US$2bn in energy transition investment. Its target is a total deployment of 1.5 gigawatts of clean renewable energy generation and storage by 2030.
It is hoped that ETAF will help to advance the economies of partner countries by providing reliable, low-cost renewable energy for businesses, industry, and homes. The new accelerator platform will help mitigate investment risks and finance renewable energy projects in developing countries that may otherwise struggle to secure sufficient capital.
COP26 Day 5 - 05 November 2021
Private-sector finance plans for decarbonisation rejected by activists
The Glasgow Financial Alliance for Net Zero (GFANZ) announced plans to transform the economy for net zero. The group represents more than 450 financial institutions from 45 countries responsible for assets worth over $130 trillion. UN climate finance envoy Mark Carney told the summit that the resources and focus of GFANZ could unlock $1 trillion of additional annual investment in emerging markets and developing countries by 2025.
The announcement prompted a backlash from activists about the use of carbon offsets (which are not prohibited by GFANZ), calling it “greenwashing”. The issue risks spilling into other parts of the negotiations on establishing rules for a global carbon market. Under the carbon trading scheme, countries will be allowed to buy emissions reductions achieved in another part of the world and count them towards their own climate goal. This effectively creates an offset market for countries. Countries are divided over the plans and carbon trading is one of the key areas still to be resolved at COP26.
COP26 Day 5 - 05 November 2021
Global coalition of industrial companies boost target for green hydrogen
At the COP26 talks on Thursday, the Green Hydrogen Catapult (GHC) announced a boost for producing green hydrogen The initiative was founded by companies including Fortescue Future Industries, Danish wind power company Ørsted and Swedish startup H2 Green Steel. The GHC set a goal of 45 gigawatts of electrolyzers, far higher than its previous target of 25GW. The electrolyzers will be powered with green electricity, to be developed with secured financing by 2026 with targeted commissioning in 2027.
​
Green hydrogen, derived from water using electrolyzers powered by renewable energy, is seen by countries and companies as a way to cut carbon emissions. But it now costs about four times more to make green hydrogen than it does to make "grey hydrogen" using electrolyzers powered by natural gas or other fossil fuels. This new target could produce enough hydrogen to power about 45 average-size steel mills, while cutting greenhouse gas emissions by reducing the need for fossil fuels
COP26 Day 5 - 05 November 2021
Scotland pledges climate loss and damage investment in world first
The Scottish government has promised £1million to help the world’s most vulnerable communities repair and rebuild after climate disasters like floods and wildfires.
Scotland’s leader Nicola Sturgeon said her government would partner with the Climate Justice Resilience Fund to “address loss and damage” caused by climate change. According to experts it is the first ever public finance pledge which has been specifically described as ‘loss and damage’. Although the amount of funding is largely symbolic, vulnerable countries hope others will follow.
Under the Paris Agreement, all countries agreed to address the ‘loss and damage associated with climate change impacts’. Campaigners have estimated vulnerable nations need at least $300bn to respond climate disasters in 2030. But wealthy countries have resisted providing specific finance for this as they do not want to accept liability and risk being sued by climate vulnerable nations. There is no multilateral vehicle for distributing loss and damage finance. At the last COP, the Santiago Network was set up to coordinate action on loss and damage, but it has no budget. Now negotiators are discussing how to put it into action.
COP26 Day 3 - 03 November 2021
Leaders join UK plan to boost green technology across globe
More than 40 nations including the US, China and developing economies vulnerable to climate change backed the Breakthrough Agenda. This will see countries and businesses work together to align standards and coordinate investments to scale up production and reduce the cost of green technologies. Work will focus on clean electricity, electric vehicles, green steel, hydrogen and sustainable farming. The aim is to make these affordable and available to all nations, particularly the developing world, by 2030 and create 20m new jobs.
A global transition to green energy and vehicles is vital in tackling the climate crisis. The idea behind the plan is to bring forward the tipping point at which green technologies are more affordable and accessible than fossil-fuelled alternatives. It would give investors certainty that global markets will be created for low-carbon, or zero-carbon, technologies. It is hoped the initiative will eventually help draw in trillions of dollars in private finance for cutting emissions.
Key Developments 03 November 2021
Major deals agreed on methane and deforestation, India makes net zero promise and the end for coal.
-
Over 100 countries have signed up to a global methane pledge to cut emissions by 30% by 2030. But some of the world's top methane emitters are still to sign. This comes after 105 countries, promised to end deforestation by 2030.
-
India promises to reach net zero by 2070. Though later than many others, countries representing 90% of global GDP are now targeting net zero. Other pledges: reaching 50% renewable energy and reducing emissions by 1 bn tonnes CO2 by 2030.
-
New efforts to wean the world off coal. South Africa to receive £6.2bn from wealthy nations to end its reliance on coal. Michael Bloomberg starts campaign to close a 1/4 of the world’s remaining coal plants and all proposed new ones by 2025.
COP26 Day 3 - 03 November 2021
Big UK firms and financial institutions made to show how they will meet climate change targets
The UK is announcing a move to make the UK the first net-zero-aligned financial centre. This means UK financial institutions have to demonstrate how they will decarbonise in line with the country’s legally binding net-zero targets. Under new Treasury rules, by 2023 they will have to set out detailed public plans for how they will move to a low-carbon future. A Transition Plan Taskforce made up of industry leaders, academics, regulators and civil society groups will also be set up. It will develop a ‘gold standard’ for transition plans to prevent ‘greenwashing’.
The strategies will need to include targets to reduce greenhouse gas emissions and the steps which firms intend to take to get there. The aim of publishing the plans is to increase transparency and accountability but net-zero commitments will not be mandatory. Companies and their shareholders will be left to decide how their businesses adapt including how they intend to decarbonise the emissions they finance. Green groups say the proposals do not go far enough.
COP26 Day 3 - 03 November 2021
New $10billion initiative launched to support clean energy and energy access in developing countries
The Rockefeller Foundation, with IKEA Foundation and Bezos Earth Fund together with development banks yesterday launched the Global Energy Alliance for People & Planet (GEAPP). The new alliance has made an initial $10bn commitment to accelerate and scale green energy transition and renewable power in developing countries worldwide.
Countries that still suffer from energy poverty today are responsible for only 25% of global CO2 emissions. These countries receive only 13% of the world’s supply of clean energy financing, even though they represent nearly half of the world’s population.
Over the next decade, GEAPP aims to mobilize $100bn in public and private money. Its stated mission is to provide one billion people with reliable renewable electricity, avoid and avert four billion tons of carbon emissions, and create tens of millions of green jobs.
Latest News - 02 November 2021
Leaders promise to save world forests by 2030 in first major deal at COP26
The Glasgow Leaders’ Declaration on Forests and Land Use makes a commitment to halt and reverse deforestation and land degradation by 2030. Over 100 countries representing 85% of the world’s forests and including major forest nations Brazil, Russia, the US, Indonesia and DR Congo signed the statement.
A nearly identical commitment was made in 2014 and has not been met. But this time the pledge includes almost £14bn of public and private funds to protect and restore forests. Some 30 financial institutions managing $8.7 trillion in assets, including Aviva, Schroders and AXA, have also promised to end investment in activities linked to deforestation.
Commenting on the development, CEO of CAFA Alison Heppenstall said:
‘This is the first major breakthrough at COP26. It bodes well for the conference, especially given commitments from Brazil and Russia. But we’ve had pledges on deforestation before that unravelled later. We need firm detail on the actions to put this into practice.’
.png)
Key Developments 01 November 2021
COP26 summit opens a day after disappointing progress on climate at the G20 Summit and New Zealand unveils new carbon reduction plan.
-
Disappointing G20 summit outcome ahead of COP26. Leaders of the G20 major economies, which account for around 80% of global greenhouse gas emissions urged action to limit global warming but offered few concrete commitments. Notably there was no specific reference to 2050 as a date to achieve net zero carbon emissions. But they did agree to stop funding coal-fired power plants in developing countries.
​
-
World leaders kick-start COP26 today amid warnings that climate summit is at serious risk of failure. Prime-minister Boris Johnson, who is hosting the conference, conceded little progress had been made. Most countries have submitted new or updated plans but the combined results are not enough to restrict global temperature rises to below 1.5C.
​
-
On Sunday New Zealand pledged to cut its net greenhouse gas emissions by 50% by 2030. This is a significant increase on its previous target but the country expects that less than a third of its emissions will be reduced onshore. Climate change experts have criticised the plan saying it focuses too heavily on offsetting carbon overseas and through forestry.
COP26 Day 1 - 01 November 2021
UK drafts COP26 deal on global aviation emissions
According to a draft document obtained by Reuters the UK is asking COP26 participating countries to push for a global target to cut aviation emissions. The COP26 host is pushing for states to join an ‘International Aviation Climate Ambition Coalition.’ Its purpose is to strengthen resolve and coordination ahead of the UN’s International Civil Aviation Organization (ICAO) Assembly in 2022.
The Paris Agreement makes no provisions for specific sectors. If the UK can get enough signatories to its proposed aviation coalition deal, it would be a first. Signing the deal would mean that countries would commit to supporting ICAO climate goals compatible with net-zero emissions by 2050. An official target may also be a good bargaining chip when convincing governments to provide incentives for investment in emerging technologies and sustainable aviation fuel.
​
COP26 Day 1 - 01 November 2021
JCB signs green hydrogen deal worth billions
Construction equipment maker JCB has signed a multi-billion Pound deal to buy green hydrogen. This is defined as hydrogen produced using renewable energy. The deal was signed with Ryze Hydrogen and Australian firm Fortescue Future Industries (FFI) in a partnership the company called the first of its kind.
Hydrogen does not produce carbon emissions when it is burned, so is considered a likely replacement for fossil fuels in heavy industries. When the government's UK Hydrogen Strategy was published in August, critics said it didn't focus enough on developing the UK's green hydrogen industry. JCB and Ryze will purchase 10 per cent of FFI’s global green hydrogen production and distribute it in the UK. FFI’s green hydrogen production is anticipated to grow to 15 million tonnes of GH2 per year by 2030, accelerating to 50 million tonnes per year in the decade after. One energy analyst said that such deals could mean that the technology becomes commercial quicker, and firms themselves take it up more quickly.
COP26 Day 1 - 01 November 2021
US and EU agree steel deal paving the way for carbon emission reductions
The United States and the European Union on Sunday ended a dispute over steel and aluminium tariffs. They said they would work on a global arrangement to reduce global carbon emissions and overcapacity in the industry, mainly in China. An EU official said the US would allow in at least as much steel as before the tariffs. The US bought around 3.2m tonnes annually from the EU before the tariffs and that has dropped by a third since.
​
This marks a new milestone in EU-US efforts to achieve the decarbonisation of the global steel and aluminium industries. Steel and aluminium manufacturing is one of the highest carbon emission sources globally. To make production sustainable the carbon intensity of the industry must be addressed, together with problems related to overcapacity. The global arrangement is a step on the way encourage low-carbon intensity steel and aluminium production and ensure long term viability of the industry.
CAFA
COMMITMENT.
We commit to mobilising thousands of associations in the run up to and beyond COP26. CAFA helps membership organisations accelerate change internally and across sectors, professions, systems and supply chains.
