The Quest For an Ambitious and Inclusive COP26

Moreover, even major institutions that are not directly bound by the Paris Agreement, such as the International Monetary Fund (IMF), are now aligned with it. Central banks are also implementing new standards for the integration of climate risks into the banking system.

The United Nations’ current "Race to Zero" campaign is also being met with enormous enthusiasm. New commitments to achieve carbon neutrality by 2050 are being made by organizations from all sides and in all sectors. The key is to now turn these long-term commitments into concrete action plans for the coming years. This is what the EU is seeking to do with its "Fit for 55" package for 2030. In the same vein, the French Banque Postale just announced its aim to become carbon neutral by 2040 and to divest from fossil fuels by 2030. It is the first French bank, and one of the first banks in the world, to set such a target within this timeframe.

Europe is now a leader in climate issues. The ambitious "Fit for 55" legislative package, which calls for a 55% reduction in the EU’s greenhouse gas emissions by 2030, is a good illustration of this. However, some major international powers, including China, the United States and Australia are still refusing to make such radical commitments. Can Europe really act alone when it comes to climate issues? 

For years, Europe has been a precursor and a catalyst among major powers on the issue of climate change. This demonstrates the extent of the technical and legislative capacities of the European institutions, as well as the normative influence of the single market. In this respect, our responsibility is just as great as our economic and political weight. The "Fit for 55" package is objectively one of the most important steps towards achieving the objectives of the Paris Agreement at the global level.

We can expect Member States to lock horns over the implementation of climate measures, as they will have different understandings of the climate emergency. Europe still has a lot to do. This is also the case for the other countries you mention, although they too are catching up. For instance, under the impetus of Joe Biden, the US is back at the forefront of climate diplomacy and is trying to make up for the time it’s lost. Last month, China announced the end of its international funding for coal-fired power plants - a profoundly transformative move. Similarly, Australia's territories are far ahead of their federal government on climate issues.

I expect the EU to be a trailblazer at the global level. The challenge now is to accelerate this change significantly.

G20 countries account for 81% of global CO₂ emissions. At the Copenhagen Summit in 2009, the so-called "developed" countries committed to mobilizing USD 100 billion per year before 2020, to support the so-called "developing" countries in their fight against climate change. Given that these commitments have not been met, how can we ensure that COP26 will accompany fragile countries on their way towards greener technologies?

According to economist Nick Stern of the Grantham Institute at the London School of Economics, we may finally be getting closer to this target. Stern expects that the target of USD 100 billion will be reached within the next two years. Respecting this commitment is important to maintaining a minimum of trust between rich and developing countries - between emitters and vulnerable countries. Nevertheless, this objective is only a symbolic threshold and should not be perceived as the end of the race. The green transition will require trillions for the most fragile countries. This is the only way to ensure that we evolve in a fairer and safer world. 

As you point out, climate finance is one of the major issues at stake ahead of the COP26: we need to go beyond the USD 100 billion mark once and for all and launch a powerful dynamic to mobilize investments for the climate. In this respect, technology is no longer the sole answer. It is also necessary to improve the design of these investments, particularly through blended finance, in order to reduce the risks and generate crowding-in effects. 

Finally, we must face reality: the first effects of climate change are already here. COP26 must dedicate a significant part of the negotiations to mobilizing finance to adapta to the consequences of the climate crisis (droughts, hurricanes, floods, heat waves, etc.). Investments to enable better adaptation should now represent half of all climate finance. 

We still have a few years to avoid the worst consequences of climate change. To do so, climate action must become a reality and an ambition for all. That is particularly true today, as the summer of 2021 has reminded us of the harsh reality of the climate crisis: no-one will escape its impacts. 

Copyright: Hector RETAMAL / AFP