COP27: Reasons to be stubbornly optimistic

On the eve of COP15 ('the biodiversity COP') I've been reflecting on some of the key takeaways from my time at COP27 a few weeks back:

COP27 was a whirlwind of activity, underpinned by highs, lows, exciting breakthroughs and exasperating stand-offs. Under the headline ‘Together for Implementation’, this year’s conference promised to be all about action and solutions. Following a year of alarming climate events across the globe, the message was loud and clear: we need to do more and we need to do it now. 

If you followed the news coverage of the formal negotiations, you will have seen international consensus was finally reached to set up a compensation fund for developing countries suffering the impact of climate change. However, nations once again failed to agree on a commitment to phase out the root cause of climate change - fossil fuels. 

After listening to the UN Secretary António Guterres’s grim warning that ‘we are on a highway to climate hell’, as well as the personal accounts of the terrible suffering faced by millions of people displaced by flooding in Pakistan, it is hard not to feel frustrated and disappointed. 

However, there’s still plenty to be optimistic about. COP27 was the second biggest COP on record after Glasgow, with over 35,000 attendees. All the participants I met, particularly across the buzzing youth and business pavilions, were there to learn, unite and bring solutions new and existing to scale.  

To ‘keep 1.5C alive’ and limit the worst impacts of climate change, we need transformative near-term actions and radical collaboration across governments, businesses, and communities. Both at COP27 and in my day-to-day work, I see growing momentum and cooperation, as well as innovative solutions – a few of which I’d like to share as inspiration to keep moving forward.  

Seven reasons to stay determined: 

Even in a fractious world, countries are still coming together 

At a time of difficult geopolitics, the historic deal on loss and damage should be celebrated as a win for climate justice. It is also worth remembering that we don’t need every country on board to create impactful solutions. At COP27, countries representing half of global GDP agreed a 12 month action plan to make clean technologies cheaper and more accessible across five major sectors under the Breakthrough Agenda agreed at COP26. This will include power, road transport, steel, hydrogen and agriculture. 

The transition to cleaner and greener alternatives is picking up pace 

Since the Breakthrough Agenda was agreed at COP26 last year, significant progress has been made.  At COP27, France and Spain joined 39 other countries and 14 vehicle manufacturers who have all committed to making all new car sales zero emission by 2035 (five years earlier than initially targeted). New data from BNEF found electric vehicle sales hit 13 per cent in the first half of 2022, compared to less than 3 per cent in 2019. Meanwhile in the energy sector, over 80 per cent of all new power capacity installed globally in 2021 was renewable. 

Collaboration of business, public sector and entrepreneurs drive innovation 

Innovation, the solutions and ideas we need to transition to a low-carbon economy, are already out there, and there are some amazing examples of empowering innovators through collaboration, such as The Earthshot Prize.  

The 15 finalists for the 2022 prize each created trailblazing solutions, from transforming barren desert into farmable land, to making low-carbon concrete from non-recyclable plastic and by-products; great inventors across the world are pioneering extraordinary solutions.  I’m proud to see how businesses, including Deloitte, and organisations come together to help innovators scale and grow their solutions.  

Our latest Climate Check Survey found that business leaders see innovation, through R&D and new tech, as the key to transition to a low-carbon economy, so I’m excited to see innovation happening in unexpected places and hard-to-abate industries. 

World leaders and businesses alike are recognising that climate policy is good economic policy 

While economies around the world are struggling, this is a real turning point to take action, as detailed in  Deloitte’s Global Turning Point Report. This sentiment was echoed by several world leaders at COP27, including US President Biden and World Bank Group President David Malpass. Throughout my discussions with clients, I see businesses are increasingly aligning social value with revenue generation and targeting a triple bottom line (people, planet and profit).  

Developing mandatory reporting will drive accountability 

As businesses and other non-state actors provide more detail about how they will implement their net zero pledges, momentum is building for mandatory reporting to combat greenwashing. Bringing consistency to what is, at times, a disparate process, will ensure reporting more accurately reflects performance and enables more decisive action to be taken to address any shortfalls. It’s encouraging that a record number of companies are now reporting climate data through CDP, with several countries making bold announcements on incoming climate disclosure legislation.  

Transformational change has been proposed to mobilise climate finance faster 

For the first time, the final negotiating text called for the reform of multilateral development banks and international financial institutions to ensure they are fit for purpose to tackle the climate emergency. If we are to meet the goals of the Paris Agreement, trillions of dollars of private capital will need to be raised. At G20 in Bali, Indonesia announced it has secured $20 billion in investment from supporting countries and private investors to move away from coal and double the amount of renewable power it deploys this decade. 

And finally… Individual actions can turn the dial 

IPCC research estimates behavioural and lifestyle changes have the potential to reduce global emissions by 40-70% by 2050. This needs to happen at a systemic level across society, including (but not limited to) recycling, reduced travel, lower meat consumption and energy saving measures. My plea is for everyone to think about what you personally can change at home and at work. We often have more influence than we assume. 

This article is not to downplay the enormity of the task ahead or take progress for granted. There is an overwhelming amount of work to do. But blame and despondency will not help us move forward.  It is on us as businesses and individuals to come together do our bit.  

I’d like to end with a quote from the closing speech of High-Level Climate Action Champion Nigel Topping:  

‘We can transform so much faster if we dare to imagine’. 

If you want be part of the solution and make change happen, please reach out. I would love to hear your ideas and see what we can do together.