End of week 1
US President Joe Biden addressing COP27 on Friday. Photo via UNFCCC Photo Desk/Flickr
Welcome to Week 2 of COP27!
If you’ve just arrived in Sharm el Sheikh, welcome! And if you want to orient yourself around the COP site, a few pointers:
IETA’s Business Hub is located in Area C, Zone 5, Pavilion 123, as marked on this map. You can view our full programme online, and we preview the coming day's events in our daily updates.
Once you’ve been through security and exited the entrance pavilion, turn left and walk across the open square. You need to pass through two halls – Delegation Pavilions 1 and Delegation Pavilions 4 – and, in the third pavilion, you’ll find IETA’s Business Hub.
Our neighbours this year are the International Chamber of Commerce, the GEF, the Coalition of Rainforest Nations and the Republic of Guinea. We’re also just 20 metres from the Australian pavilion, which is serving what is universally acknowledged to be the best coffee at COP. #COP27AusCoffee!
Week 1 ends...
After the contact groups working on the draft texts for Articles 6.2 and 6.4 were unable to reach consensus on the draft decisions, their texts were sent back to the SBSTA plenary on Saturday evening.
The draft documents are as below:
Article 6.2 cover decision
Article 6.2 draft text
Article 6.4 cover decision
Article 6.4 draft text
There is also a draft decision for Article 6.8.
For those of us who are following the CDM, there was also draft decision text for the SBI on Guidance to the Executive Board of the CDM.
The SBI also discussed a second set of draft decisions dealing with the CDM’s future operations in relation to Article 6.
The cover decisions for both Articles 6.2 and 6.4 highlight that the outcome “does not represent consensus among Parties and further work by the CMA is necessary to finalise it”.
The Article 6.4 text still has a significant amount of bracketed language, particularly relating to the operation of the mechanism’s registry and the transfer of CERs from the CDM registry.
The text on the registry and on transaction procedures is also linked to the section on authorisation of emission reductions, and this is turn is linked to discussions that are taking place under the Article 6.2 work.
Some Parties have suggested waiting for the Article 6.2 authorisation talks to conclude before dealing with these sections in Article 6.4.
As we’ve already highlighted, authorisation has been the main source of controversy so far in the Article 6 talks. Some countries still want to retain the right to revoke or change the authorisation of emission reductions after they have become ITMOs or even Article 6.4 emission reductions, and this is making market participants nervous.
Decisions on this issue could impact some of the Article 6.2 deals that have already been signed, for example. If the topic of retroactive revocation or change of authorisation is not addressed in the Article 6 talks, it may require national government policies instead to provide certainty.
There are also issues around the status of non-authorised Article 6.4 reductions and the purposes to which they can be put. There is a view among some observers that these credits should be allowed to be put towards host country domestic targets, but should not be traded under Article 6.4.
There also remain some options in the draft text sections on the share of proceeds, and overall mitigation of global emissions.
There is bracketed text relating to decisions regarding the issuance of CERs for monitoring periods before 1 January 2021, a deadline for the approval of methodologies, and transfer of CERs to the Article 6.4 mechanism registry.
Closing a joint SBI/SBSTA plenary on Saturday night, UNFCCC Executive Secretary Simon Stiell chided delegates for not making enough progress in the talks during week one. “Everyone, everywhere must do everything possible,” he said.
Only two Parties made explicit reference to Article 6 in their closing statements late on Saturday night. Speaking on behalf of the ALBA group, Venezuela emphasised the role and importance of non-market mechanisms under Article 6.8.
Brazil, speaking for the ABU group, said they expect the second week’s work on Article 6.2 to focus on infrastructure, authorisation and design of the review process. Brazil also noted that, on Article 6.4, some important issues like methodology have been delayed in the subsidiary bodies.
The Business and Industry NGOs said that Article 6 implementation rules must be clear, with no double counting. BINGOs urged parties to work to find a solution for the ITMO registry and tracking and reporting templates. On Article 6.4, they said parties must clarify authorisation and exemptions required to ensure a robust system.
IETA COP27 Business Hub news
Week 2 of COP27 at the IETA Business Hub begins on Monday at 0930 hrs when our managing director Katie Sullivan hosts a state-of-the-markets discussion looking at North America. Hear from national and sub-national regulators as well as corporate leaders as we round up the status of existing and new markets.
GE’s scheduled event on decarbonisation at 1100 hrs has been replaced with a special session organised by Emissions Reduction Alberta (ERA) from 1200 hrs, at which the government of Alberta will announce ERA’s latest funding opportunity. Alberta’s Minister of Environment and Protected Areas, Sonya Savage, will be joined by ERA’s CEO, Justin Riemer, and Capital Power’s President & CEO, Brian Vaasjo.
IETA members American Carbon Registry take over our side event room at 1230 hrs, when they’ll investigate how to reduce powerful non-CO2 greenhouse gases such as methane and HFCs. Panellists from Tradewater and the Well Done Foundation will join the discussion.
At 1330 hrs the Global CCS Institute will present an event looking at the potential and the need for carbon dioxide removal technologies to ensure we reach the 1.5˚C target. Speakers from Carbon Direct, Carbon Gap/Oxford University, 1PointFive International and the Clean Air Task Force will also participate.
Resources for the Future will host an exploration into the road ahead for US climate policy at 1500 hrs, with the participation of Stephanie Epner, Special Advisor and Acting Senior Director for Climate and Energy at the White House National Security Council, and Manish Bapna, President and CEO of the Natural Resources Defense Council.
1630 hrs sees the European Bank for Reconstruction and Development return to the Business Hub to lead a discussion on gender-focused climate finance; speakers from the UNFCCC, the Climate Investments Fund and private sector representatives will showcase the key tools and knowledge products available to private-sector investors.
At the final event on Monday at 1730 hrs, we welcome Camco Clean Energy, who will host a review of the business landscape for renewable energy in Africa. UNEP and the Nigerian government will also discuss challenges and opportunities in the sector.
IETA’s Business Hub is located in Area C, Zone 5, Pavilion 123 – our neighbouring pavilions at this year’s event are the International Chamber of Commerce, the GEF, the Coalition of Rainforest Nations and the Republic of Guinea.
We’d like to thank all our main partners, supporting partners and sponsors who are making IETA’s programme at COP27 possible. Your help and participation is appreciated!