The first three days of COP26

What is being whispered by the water cooler?

After a year of virtual meetings and expectations of what may come out of COP26, here we are in Glasgow.  This is the first time a lot of people (approximately more than 30,000) are gathering for a climate change conference to solve the climate crisis post-Covid-19. The feeling of being in conference rooms full of people passionate about the earth is overwhelming, inspiring, and hope-inducing. In the long lines to get into the COP26 venue, the man in front of me asked I want to know why everyone is here. This question resonates with me as people are passionate to drive change, learning, and making a difference in their respective domains. Needless to say, an attempt to tackle the climate crisis will take more than 12 days, people from over 200 countries and just a group of people caring about earth from different walks of life, from NGOs, big corporations, indigenous people, governments, and artists.

Here are some of the key developments that took place over the course of the last three days:

What will change if we put a price on carbon?

For a long time, we have been talking about solutions to tackle climate change. Perhaps we must first look at one of the biggest underlying reasons behind climate change: “the often overlooked, not factored in and not priced world of “externalities”. Perhaps one of the best ways to price externalities for climate change is by pricing carbon. A new report by the World Economic Forum and PwC revealed that if we put a price for carbon emissions, greenhouse gas emissions could reduce up to 12.3%.

The minute we pronounce “carbon pricing”, I can hear the footsteps of many business leaders running away.

How can the finance sector be part of the change?

Talking about money, there has never been more momentum in pushing the financial sector in becoming part of the solution for climate change. So far, the finance sector has been (mostly) part of the problem by financing carbon-emitting businesses because they yielded high returns on investment without any consideration of the consequences for the environment.  At a recent event hosted by McKinsey, representatives from some of the world’s biggest financial institutions, such as KKR and Goldman Sachs, expressed their will to transition into supporting a greener economy, amidst the challenges of transitioning the mindsets and hearts of the decision-making in their sector. Although there are many challenges to this change, the opportunities are out there, and there is a clear demand by customers to move towards a more just and climate-friendly economy.  The good news is that yesterday, more than 450 financial institutions with assets worth $130 trillion pledged to limit greenhouse gas emissions.  As always the case with pledges, I am skeptical of what is to emerge in reality whilst staying optimistic.  However talking to many executives from the financial sector, it is clear that they are also ready to onboard with it.

Can governments create the change we need?

Well, after all, we are here because governments should agree on their climate change adaptation and mitigation strategies and make commitments that would pave the way to stop climate change. The jury is still out!

On the first day of the negotiations, more than 100 world leaders promised to end and reverse deforestation by 2030. Amongst these leaders is the Brazilian president, Bolsanaro, where the deforestation in the Amazon basin has been at record levels during his presidency. The problem with deforestation in the Amazon is it is not just a headache for the indigenous people, whose livelihoods have been negatively affected, losing those forests are accelerating climate change and bringing us to the point of no return. Most Brazilians here at the COP26 are skeptical of this initiative because in the past they have observed deception by their own government. This new deforestation pledge will also include more than 19$ billion in public and private funds. India, the world’s fourth-largest emitter, pledged to a target of net-zero emissions by 2070. Prime Minister Modi also announced that his country was aiming to get half of its energy from renewable sources by 2030. We have yet to see these pledges turn into actions, but hope is there. And last but not least, 90 countries have joined a U.S.- and EU-led effort to 30% the methane emission reduction by 2030 from 2020 levels. Methane is a greenhouse gas that is 28-34 more potent than Co2 despite the fact that it stays in the atmosphere for a shorter period of time. 

My favorite part:

And what are people talking about by the water coolers?

As we all know, the real discussions take place in between the meetings, by the water coolers, in the cafeteria queues and so here are a few observations:

Where is the technology?

We all know that technology can be one of the most important tools to get us out of climate change, but are we talking about it enough? I have participated in discussions with business leaders from the world’s largest companies and financial institutions and we all agreed on the importance of technology. However here at COP26, I don’t think there is enough discussion about the emergence of AI for climate change use or blockchain to trace sustainability in supply chains or cutting edge technologies like hydrogen power. We all agree that we need technology to propel us in the right direction and I would have hoped to have heard more of those solutions here at COP26.

Are we including all the voices in what we know as a global conference for a global problem?

On the first day of my arrival, I walked into COP26 with a group of indigenous people from the Amazon Basin. They demanded that their voices be heard. They demanded that we talk about the land rights violations that they are being subject to by big corporations and governments. They wanted their land and communities to be respected. You cannot invite a crowd to travel across the globe if you are not going to integrate them into the conversation.

Indeed, there are not enough voices in Glasgow this year. This year, about two-thirds of civil society organizations who usually attend COP couldn’t make it here because of several problems, ranging from accreditation problems, changing travel rules, visa issues,  lack of access, and Covid-19 vaccinations. Even if an organization is here, it does not necessarily feel they are being included. I spoke to the German Youth Coalition (more than 120 young people from Germany), who demanded that their government take action to cut their emissions and take responsibility for social justice but these young people felt alienated at COP26.  Until we hear all the voices in the room, this is not democracy and this is not a just platform. Whether the German youth or the indigenous communities from across the globe, we need to be inclusive. Only if we break these silos, we can hear each other out and progress forward. This is precisely why we need the civil society organizations in the room. To be honest, the fences around the COP26 event feel cold and alienating. 

Where are the women?

Hello! This is 2021 and we still have a gender equality problem. This picture is worth a thousand words. Inclusion is not a buzzword, it is a game-changer if we need to move forward.

Why do we need good business leaders who appeal to the minds while also conquering the hearts?

As always, I am fascinated by trailblazers, who change minds and hearts and there is no one else who inspires us all more than Paul Polman, the ex-CEO of Unilever.  Last night, in a small dinner with business and government leaders (and yours truly), he addressed business leaders to lead with purpose, to look beyond numbers, to be bold enough to change their boards, to hear all voices in the room, and to collaborate. Indeed, radical collaboration and inclusivity are a must if we want to approach these wicked and systemic problems. We all found ourselves nodding to the words of Paul Polman, who encouraged everyone to look to nature-based solutions and think beyond profits and lead with purpose. 

A lot of happening inside and outside of COP26. The pressure is there. The change is in the air, but for now, it is a good time to take a break and assess the happenings of yet another day in Glasgow. More to come tomorrow…