DiCaprio Breezes In as Security Blocks Delegates: COP26 Update
Momentum Builds on Climate Talks; Methane Pledge: COP26 Update
(Bloomberg) -- World leaders wrapped up two days of climate talks with pledges on protecting forests and curbing methane emissions, as U.K. Prime Minister Boris Johnson warned that promises must be matched with real action.
Johnson continues to press China to step up its targets, while Beijing said it’s up to rich countries to do more. As developed-world leaders hailed their own progress, island nations and those most vulnerable to climate change railed angrily against the lack of action to protect them from an existential threat.
Key Developments:
- Johnson urges China to peak its emissions in 2025
- Biden says Xi made mistake not coming
- China warns against trying to force 1.5 degree goal
- Over 100 countries sign methane plan
- Belgium says EU’s green strategy is a trade weapon
- Yellen to weigh in with call on finance chiefs
- Mark Carney vows ‘hard numbers’ from banks on CO2 emissions
- Countries promise to end deforestation
- U.K. burns most coal in eight months
(All timestamps Glasgow, Scotland.)
Green Strategy Is EU’s Trade Weapon (6:45 p.m.)
The EU’s ambitious climate plan is in part a “trade weapon” to force major polluting economies to comply with the bloc’s demanding standards, Belgian Prime Minister Alexander De Croo said.
Countries would need to meet the EU’s sustainable requirements if they want to export their products to Europe. “We do this because we believe this is the way we gain economic and technological advantage,” De Croo said in an interview with Bloomberg Television. “But we also do it because we will use it almost as a trade weapon.”
China Warns Against Tightening Goal to 1.5 Degrees (6:30 p.m.)
Xie Zhenhuan, China’s climate envoy, warned against efforts to try to redefine the terms of the Paris Agreement to focus on 1.5 degrees of warming -- rather than the original goal of under 2 degrees but preferably 1.5 degrees.
“If we only focus on 1.5, we are destroying consensus and many countries would demand a reopening of the negotiations,” he told reporters at COP, according to the BBC. “The world already has a consensus. We need to be realistic, pragmatic, and focus on taking concrete actions.”
He also reiterated calls for rich nations to do more, Chinese state media CGTN reported. And in another sign that a deal on carbon markets could be within reach, the Chinese negotiator said there’s a political consensus already and the obstacles are technical. He believes a deal on the so-called article six of the Paris Agreement could be reached at the summit.
Argentina Offers Creditors Climate Action for Money (6:43 p.m.)
Argentina, one of the world’s most prominent defaulters, is pushing for a new way to service debt: Instead of paying creditors with cash that’s on short supply, it wants them to recognize the country’s efforts to tackle climate change.
“We need more flexibility to honor that debt,” President Alberto Fernandez said at COP26, of about $46 billion that Argentina owes to the IMF. “We’re willing to link part of the payment to essential investments in green infrastructure.”
U.K. Burns Most Coal in Eight Months (5:49 p.m.)
The U.K. is burning the most coal since March, putting the COP26 host in a delicate situation as it pushes countries to commit to reducing emissions. The country is turning to the most polluting fuel for power with wind speeds slowing down sharply.
Conference President Alok Sharma has urged world leaders to “consign coal to history,” but G-20 nations over the weekend failed to reach such a deal.
Johnson Wants Climate Pledges Matched to Action (5:20 p.m.)
U.K. Prime Minster Boris Johnson warned countries should match action to their pledges on climate change, as he said he’s “cautiously optimistic” about progress made at the COP26 talks.
At a press conference, Johnson cited progress including a climate commitment by India, an agreement to end “the great chainsaw massacre” on forests, and on cutting methane emissions. He warned against getting “caught up in the atmosphere of exaggerated enthusiasm.”
Johnson likened the battle between humanity and climate change to a soccer match in which humans are losing 5-1, but said that “we’ve pulled back a goal or perhaps even two, and I think we’re going to be able to take this thing to extra time, because there’s no doubt that progress has been made.”
EU, Gates Sign $1 Billion Breakthrough Funding Plan (4:50 p.m.)
U.S. billionaire Bill Gates and the EU rubber-stamped their $1 billion plan to help scale-up moonshot technologies that could help to drastically reduce emissions and promote pioneering solutions in the region. The projects, which will start to be picked next year, will focus on the four areas of clean hydrogen, energy storage, carbon capture and clean aviation fuel technologies.
Gates, who is the founder of Breakthrough Energy Catalyst, said that none of the funds would be used to help fund nuclear projects, which have become particularly controversial in recent months as the region undergoes an energy crisis. European Commission President Ursula von der Leyen said that the body would also have any veto on the funding of any project put forward.
Greenpeace Says Methane Pledge a Start as Leaders Session Ends (4:40 p.m.)
“This initiative needs to be the start and not the finish of the ambition on cutting this potent greenhouse gas,” Juan Pablo Osornio, head of the Greenpeace Delegation, said in a statement as the leaders’ plenary closed.
“The IPCC says we need to cut all emissions in half by 2030 if we hope to keep global temperature rises within 1.5C. If we drastically slash fossil fuels we’d cut methane and carbon emissions at the same time, and have a much better chance of meeting that goal.
“And by not including meat reduction or pledges to change people’s diets in this commitment, governments are giving a free pass to Big Agriculture.” As a result, he said, “this announcement dodges what’s needed.”
Duke Energy Executive Praises New Methane Rules (4:20 p.m.)
Duke Energy, one of the largest electric and gas utilities in the U.S., welcomes new rules to stop methane leaks and releases, the company’s senior vice president for external affairs and communications said in an interview.
“We see monitoring and controlling methane emissions as critically important,” said Louis Renjel, who leaves for Glasgow on Thursday and said that Duke is still studying the new rules.
Duke burns natural gas in its power plants, has a natural gas distribution system that serves over 1.6 million customers and has set a goal to be net-zero on methane emissions in its gas business by 2030. “Regardless of regulation, we’re still moving towards a net-zero methane future,” Renjel said. “That’s always been in our plans.”
Island Leaders Make Desperate Pleas to Avert Disaster (4:10 p.m.)
In back-to-back speeches, the leaders of first Tuvalu and then the Bahamas laid out what is at threat in their respective nations.
“Low islands are sinking, our existence is being threatened,” said Kausea Natano, Tuvalu’s prime minister. “We can’t wait for another 10 years or for another year - we must take action now to rescue our future.”
“We in the Bahamas will do what we can but there are limits of our nation’s efforts,” said Philip E. Davis, the island nation’s prime minister. “We cannot outrun your carbon emissions, we cannot outrun the hurricanes which are going more powerful and we cannot outrun our sea levels as out islands disappear.”
The Bahamas, he said, “is not now and never has been the problem and yet we are forced to pay the price.”
Europe Climate Bank Sure of Funds for Green Projects (4 p.m.)
The European Investment Bank, which wants to invest 1 trillion euros ($1.2 trillion) to support climate action and environmental sustainability, has no concern about finding the necessary funding, according to President Werner Hoyer.
“The money is waiting on the street surface for us to pick it up and put it to green projects,” Hoyer said in an interview with Bloomberg TV’s Alix Steel and Guy Johnson. “The attitude of asset holders and investors has totally changed over the last 10 years and I hear from big asset managers that this is continuing to change.”
Financial firms need to support investment in cleaner fuels like hydrogen as well as the vast amounts of electricity needed to produce it, Hoyer said. Even if that’s not a short-term fix, the world can “produce a miracle” like it did when making solar energy cheaper than fossil fuels, he said.
Biden Announces Corporate Clean-Tech Coalition (3:20 p.m.)
The U.S. president announced the launch of a coalition of 25 large companies that have committed to purchasing emerging technologies designed to help drive down emissions.
The First Movers Coalition will be coordinated by the State Department and is intended to amplify government efforts to encourage clean energy technologies. The group includes representatives of the steel, shipping, aviation, trucking, and chemical industries, Biden said.
“We can’t achieve our goals through government action alone,” Biden said at an event promoting clean technology innovation.
Modi Unveils Solar Grid Project With U.K. (3:05 p.m.)
India and the U.K. launched a global project that aims to create a common grid to carry solar energy. The One Sun, One World, One Grid and Green Grid will aim to create a sustainable global link to transmit solar power produced across regions, Prime Minister Narendra Modi said.
The grid will help eliminate the need for large storage for solar energy. India’s space agency will also launch an app that can calculate the potential for producing solar energy at any location in the world, he said.
Saudi Arabia’s Shiny New Climate Targets Lack Action Plan: BNEF
U.K. Sees ‘Significant Momentum’ at Talks (2:35 p.m.)
The U.K. expressed optimism about the early stages of COP26, following India’s announcements on emissions on Monday, and Brazil on Tuesday signing up to a commitment to end deforestation.
“We are starting to see some significant momentum over the past day and a half as we see some real tangible commitments announced,” Prime Minister Boris Johnson’s spokesman, Max Blain, told reporters in Glasgow. India’s pledge “will significantly reduce carbon emissions by 2030,” while the measure to combat deforestation is “the biggest step forward in protecting the world’s forests in a generation.”
Blain also said the U.K. is working “very closely with other countries on supporting carbon border mechanisms” that could see taxes levied on the emissions used to produce imported goods. “There’s a great deal of work that needs to be done on that and we need to make sure that it’s done in a way that’s proportionate and fair certainly to the U.K. public, but other countries as well.”
DiCaprio Makes an Entrance in Glasgow (2:20 p.m.)
Even as dozens of delegates were barred from the rollout of the global methane pledge, Hollywood actor Leonardo DiCaprio, the “Titanic” star turned environmental activist, made it inside to hear heads of state extol the importance of paring emissions of the powerful greenhouse gas.
DiCaprio at one point spoke on the sidelines with White House National Climate Advisor Gina McCarthy, who helped develop the methane action plan the U.S. unveiled Tuesday.
Security Blocks Methane Meeting Delegates (1:55 p.m.)
Several delegates were blocked from entering the conference room where heads of state are talking up the methane pledge while Biden and the EU’s Von der Leyen were inside. Now that they have left, along with dozens of others, some delegates have emerged to try to swap out with colleagues or bring in others, only to be rebuffed. Security insisted in one case that having come out, they cannot go back in.
Carney Gets Stuck and Misses Fink Chat (1:30 p.m.)
COP26 Climate Advisor Mark Carney got locked into the area where delegates negotiate and missed an appointment with Blackrock Chairman Larry Fink. The former Bank of England governor was due to speak with Fink at the Green Horizon Summit in another venue on the other side of the River Clyde.
The two had been due to hold an informal fireside chat over lunchtime but attendees were told Carney wouldn’t make it since he was held in the so-called blue zone as secret service had locked it down while Biden left. The Lord Mayor of the City of London William Russell stepped in at the last minute instead.
Kerry Says Climate Finance is Up to $98 Billion (1:15 p.m.)
Kerry, who is U.S. Special Envoy for Climate Change, said that rich nations had pledged enough to hit $98 billion of climate finance for poorer countries next year and that pledges made today could see that go higher. It comes amid extreme pressure to hit the $100 billion goal to help unlock talks at COP. It’s a target that was originally set for 2020 and has not yet been hit.
Kerry cited the Japanese premier’s announcement that Tokyo will make a “major contribution” over the next 10 years, along with other sources, saying if that “detail gets locked in properly, that would put us over the 100 for next year” on climate finance.
Kerry also hit out at former President Donald Trump for “stopping the money.”
Rich Nations Pledge Aid for South Africa Coal Exit (12:45 p.m.)
Rich nations including the U.S. and U.K. announced $8.5 billion in funding over the next three-to-five years to speed up South Africa’s move from coal to clean energy.
South Africa, the world’s 12th-biggest emitter of greenhouse gases, depends on coal to generate most of its electricity. It will receive a range of funding including grants and concessional finance to accelerate investment in renewable energy and the development of green hydrogen, President Cyril Ramaphosa said in a statement on Tuesday.
The plan will involve closing South African coal stations ahead of schedule, Biden told reporters at COP. The partnership also includes France, Germany and the European Union.
OPEC Member Nigeria Makes Net-Zero 2060 Pledge (12:13 p.m.)
Nigeria has pledged to achieve net-zero carbon emissions by 2060, President Muhammadu Buhari said. Africa’s largest crude producer is looking for funds to meet this goal and for investments in cleaner energy projects.
Buhari also said natural gas has a role to play in the transition. “Nigeria can continue to use gas until 2040 without diverting from the goals of the Paris Agreement,” he added.
Biden Offers Alternative to China Plan (12:10 p.m.)
Biden said he would work with European leaders to offer infrastructure financing that prioritizes environmental concerns, and he proposed an alternative to “debt traps and corruption” as the U.S. looks to construct a rival to China’s Belt and Road initiative.
Projects should “be designed in close partnership with the countries where they will happen,” Biden said at a breakout session on the sidelines of the U.N. climate conference in Glasgow. “We have to show and I think we will show that democracy is still the best way for delivering results.”
The White House has repeatedly criticized China ahead of the Glasgow conference after President Xi Jinping opted to skip the global gathering and Beijing signaled it would not make additional commitments on reducing emissions.
Nordic, U.K. Pension Funds to Invest $130 Billion (12:00 p.m.)
Pension funds from countries including Iceland, Sweden and the U.K. have said they’ll make collective investments of $130 billion into clean energy and climate investments by 2030, according to a statement by the Climate Investment Coalition. Danish pension funds had already committed $55 billion in 2019.
The investments will include equities, green bonds and green energy infrastructure. As part of the commitment, the pension funds will also report annually on the progress of their climate investments. CIC also said it will look to secure new commitments, including from investors in the U.S., from 2022.
Make Climate Finance More Accessible: Top UN Official (11:57 a.m.)
Climate finance needs to be much more accessible to smaller nations that often have to negotiate challenging bureaucracy to secure funding for their projects, the president of the United Nations General Assembly said.
Abdulla Shahid, who is also the Maldivian foreign minister, welcomed progress by developed nations to mobilize $100 billion a year in aid, even though it’s a target due to be met in 2023 -- three years late. He said through the course of the 2020s, they must ensure a total of $1 trillion is mobilized.
“Access to finance by small countries has to be simplified so that we would be able to have access to this finance quickly,” Shahid said in an interview in Glasgow. “At the end of the day, climate change and its effects don’t go through these bureaucratic routes.”
Shahid also said that there should be a more even split between climate aid for projects that help cut emissions and those that help nations adapt to the effects of global warming. At present, mitigation projects get the bulk of the funding.
Palauan Legend Relates Need for Action: President (11:55 a.m.)
President Surangel S. Whipps Jr., of the Pacific island nation of Palau, related the legend of Uab, a boy who grew into a giant using up ever-more resources until he threatened to eat his own people -- a tale “eerily reminiscent” of climate change today, he said.
Demonstrating the need for united action, Whipps performed a traditional Palauan chant, which he translated as: “When traveling in one canoe, discord among sailors will capsize the boat.”
According to Palauan legend, villagers set fire to the giant Uab. And yet when he fell to his death, he created 300 islands, showing that bold united actions can lead to transformational change. “COP26 must light the fire,” he said.
Germany Says China Pledge ‘Disappointing’ (11:42 a.m.)
China’s commitment to carbon neutrality by 2060 is not ambitious enough, and Beijing must be persuaded to go further, according to Deputy German Environment Minister Jochen Flasbarth.
“It has to be said very clearly that the role of China is disappointing,” Flasbarth said at a news conference on the sidelines of the COP26 conference.
While China deserves some credit for “breaking the ice” among newly industrialized nations in pledging to cut emissions, it has since been “overtaken by a host of others,” he added. “In my opinion 2060 cannot be the final word from the world’s biggest emitter.”
Price Surge Shouldn’t Spur Support for Fossil Fuels: OECD (11:35 a.m.)
Energy prices may have soared to record levels recently, but governments shouldn’t boost support for fossil fuels in response, according to the OECD and International Energy Association.
“Instead, given the existential threat of climate change and the need for a green recovery, they should accelerate investment in sustainable energy infrastructure and the creation of green jobs,” the groups said in a statement.
Galapagos Gets More Climate Protection (11:17 a.m.)
Ecuador announced the creation of a new marine reserve in the Galapagos islands in a bid to shield it from the ravages of climate change. President Guillermo Lasso said that 60,000 square kilometers (23,150 square miles) of ocean will be added to the existing 130,000 square-kilometer protected area.
The volcanic islands, famously visited by naturalist Charles Darwin, attract about 250,000 visitors in a normal year to see animals such as the huge Galapagos tortoise and the group of bird species known as Darwin’s finches. The waters are rich in marine life including dolphins and hammerhead sharks.
Smaller Countries to Be Showcased (11:10 a.m.)
After contributions on Monday from major emitters like the U.S., China, India and the European Union, day two of the summit is showcasing leaders of predominantly smaller and island countries, many of them on the front lines of climate change.
Tanzania’s President Samia Suluhu Hassan described how her nation’s tourism and agriculture has been impacted, with Mount Kilimanjaro suffering glacial melting, resulting in unpredictable floods and droughts. Climate change, she said, is “the scourge of our time.”
President Chandrikapersad Santokhi of Suriname said that the compassion of previous summits “seems to have been lost” and complained that neither funding nor mitigation efforts have been realized. “All the good intentions will mean less or nothing” unless the required financing is achieved, he said, calling for “appropriate compensation.”
BNEF Estimates Net-Zero Goals Cover 89% of Global GHG (11:03 a.m.)
Announcements at the Glasgow climate talks mean that countries responsible for nearly two-thirds of global greenhouse-gas emissions have a net-zero target in force, according to BloombergNEF. A further 27% have such a goal under discussion, bringing the total to 89% of the worlds emissions. This contrasts with 53% on the day before the Glasgow summit began and 10% in January 2020.
WTO Chief Warns on Carbon Border Taxes (10:56 a.m.)
WTO Director-General Ngozi Okonjo-Iweala said some developing countries are afraid that carbon-border levies like one proposed by the European Union would be “disguised protectionism.”
Sitting in a panel discussion next to the EU’s Von der Leyen -- who’s put forward the measure to address carbon-intensive imports -- Okonjo-Iweala said poorer countries are finding the existing system of 69 carbon pricing regimes hard to navigate. She called for a global price to help make cutting emissions simpler.
India’s 2070 Net-Zero Goal Not Easy: BNEF (10:36 a.m.)
India’s new net-zero target for 2070 may have a deadline half a century away, but it gives companies and investors some idea of the country’s long-term climate ambition. The big task for policymakers is to understand the trade-offs involved in the transition and come up with long-term plan for how to get there, according to a study by BloombergNEF.
Bezos Sets Aside $2 Billion for Climate (10:34 a.m.)
Amazon.com founder Jeff Bezos said at COP26 that he’s making a $2 billion pledge to restore nature and transform food systems. “This is part of the Bezos Earth Fund’s $10 billion commitment” devoted to initiatives like fighting climate change, he added.
Biden Seeks $9 Billion for Forests (10:20 a.m.)
President Biden said he would work with Congress to dedicate up to $9 billion of climate funding over the next decade to support efforts to conserve global forests. He said the appropriations request would come as part of a new U.S. forest plan designed to incentivize landholders and industry to prioritize conservation.
“Preserving our forest and other critical ecosystems is an indispensable piece of keeping our climate goals within reach,” the U.S. president said, adding that nations needed “to approach this issue with the same seriousness of purpose as decarbonizing our economies.”
World Oil Demand Above 100 Million B/D: BP (9:46 a.m.)
The world’s leaders may be discussing ways to curb fossil fuel use, but BP Plc says global oil demand is back above 100 million barrels a day.
Energy consumption is bouncing back just as oil and gas supply is suffering significant constraints, pushing prices to multiyear highs and threatening the world’s economic recovery. “Somewhere next year we will above pre-Covid levels,” BP Chief Financial Officer Murray Achincloss said on a conference call on Tuesday.
U.S., EU to Meet With Developing Nations (9:45 a.m.)
President Biden and the leaders of the European Commission, Canada, the U.K., and Japan are expected to meet with representatives from developing countries Tuesday to discuss the “Build Back Better World” infrastructure initiative designed to counter China’s Belt and Road program.
The leaders will hear from countries including India, the Congo, Nigeria and Barbados as they develop the program, which is intended to provide a contrast to Chinese infrastructure funding that lacks environmental protections and can leave poor nations heavily indebted, according to a senior U.S. official who discussed the meeting before it was publicly announced on the condition of anonymity.
U.S. officials are also planning a “listening tour” across Africa later this month designed to discuss potential clean infrastructure projects with government officials, private sector companies, and civil society. The visit will include trips to Ghana and Senegal.
Kew Gardens: Deforestation Pact Is Last Chance (9 a.m.)
London’s Royal Botanic Gardens, Kew, applauded a global pact to halt and reverse deforestation. But to make it work, leaders must follow best scientific practice, according to a statement from the organization.
“Halting deforestation has been promised before but failed hugely,” said Alexandre Antonelli, director of science at the gardens. “This is our last window of opportunity. What we need now is delivery, and enough details to hold our leaders to account.”
Unilever Says It Cuts CO2 Emissions by 75% (8:49 a.m.)
Food and personal-care products giant Unilever has reduced about 75% of carbon emissions from its operations and is using 100% green electricity to power its plants and offices, Chief Executive Officer CEO Alan Jope said in an interview with Bloomberg TV. Residual emissions “need high-quality offsets, and the current offset markets are frankly a little shaky,” he added.
Jope said the LEAF Coalition, which seeks to combat deforestation by protecting specific forests, “will form a model for future types of climate finance.”
BlackRock Climate Finance Vehicle Draws $673 Million (8:25 a.m.)
The world’s largest asset manager has drawn in $673 million in funding as part of a plan to invest in climate infrastructure in emerging markets.
BlackRock says the money will go toward the Climate Finance Partnership, a public-private vehicle with a goal of accelerating the net-zero transition in developing countries. A consortium of 22 investors across the globe have committed to the project, which had an initial target of $500 million.
German Greens Leader Says G-20 Must Lead (7:15 a.m.)
The G-20 countries must drive the transition to economies where prosperity is based on climate-neutral energy policies instead of the burning of fossil fuels, according to Annalena Baerbock, co-leader of Germany’s Greens.
“It’s the big industrial nations that have led us into this disaster, and that means it’s the big industrial nations who have to lead,” Baerbock, who is likely to play a senior role in Germany’s next government, said in an interview with ZDF television.
“In Germany with renewables, we have already started this energy revolution in the electricity sector, and we need that now for all of industry,” she added. “I am convinced that we Europeans can get this done.”
Day One Review
Missed Monday’s action at COP26? Here’s a quick review of the key moments from the first day of climate talks:
©2021 Bloomberg L.P.
With assistance from Bloomberg