On the ground insights from COP26

My name is Robert, and I am GHD’s Innovation Leader – Future Energy. As GHD’s “Roving Reporter” at COP26, these are my impressions, perspectives and photos from this pivotal summit.

As a seasoned veteran of many corporate events, shows and workshops, nothing could have prepared me for the scale of this event – COP26 was overwhelming. The sheer number of people in attendance, the mix of nations, and the diverse discussion about climate change were a lot to take in.

One of my immediate impressions was that time is running out for the world to act; we need immediate resolve, coordination, cooperation and funding. Leaders faced tough questions around balancing the priorities of climate versus the economic realities associated with the drastic action required to limit global warming to 1.5°C.

The big news from COP26 was the commitment to net zero and low carbon initiatives by financial institutions representing USD130 trillion of financial assets. There was also the USD100 billon pledged by developed nations to help developing nations transition to net zero.

These numbers are huge by any account as it is projected that over USD1 trillion is needed every year to meet the ambitious climate change objectives. To achieve this goal, financial institutions have committed to rewire the entire global financial system. These announcements promise to have a tangible impact on clean energy investments, driving support for offshore wind, solar, hydrogen, bioenergy, carbon capture utilisation and storage (CCUS) and nuclear.

There was also a lot of pressure on banks to stop financing oil, gas and coal. While no firm commitments were made on the subject, there will be further reductions in funding for oil and gas companies, with those organisations that come forward with firm decarbonisation and transition plans viewed more favourably.

When some of the major coal-consuming countries pledged to shift away from their dependence on coal as a dominant energy source, many in attendance felt the commitment represented an important step forward and praised Poland, Vietnam, South Korea, Chile and Morocco for their ambitious commitments.

Perhaps more notable was the absence of US, China, India and Australia from the coalition. However, as is often the case, digging a bit deeper revealed a more complex set of sub-agreements, whereby 20 countries pledged to end public financing for “unabated” fossil fuel projects abroad by the end of 2022. These projects burn fossil fuel such as coal, oil and natural gas without using CCUS.

At the same time, it was hard to ignore the significant anxiety among nations dependent on the affordable and resilient energy currently delivered by fossil fuels, especially as oil prices continue to climb to their highest levels since 2008.

Kicking the fossil fuel habit will be incredibly difficult, and all parties tried to find enough compromise to walk away with some sense of accomplishment. It is likely that the fossil fuel industry will emerge from COP26 by accelerating CCUS innovation while slowly transitioning away from coal.

One of the most poignant moments of COP26 was walking to the conference with delegates from Africa, Peru and Mauritius. We had an incredible conversation about the hardship of their citizens, how little of the money pledged ends up making a difference in their lives and how difficult it is to actually access funding. They were optimistic, but felt that very little will actually change or get done.

This feeling was also shared by many people who were not part of the official COP26 proceedings; at one point, the protests outside the venue escalated to such a degree that the organisers had to close certain exit points.

So, while COP26 is an important event, we have to acknowledge the immediate, enormous challenges associated with the global energy transition. Decarbonisation will require significant innovation in technology not yet available today, therefore, technical fields such as STEM will need to lead the way towards net zero.

It also means that as consumers we need to support organisations with clear ESG targets that can be measured and verified. And we need to help our clients find a path forward – especially those currently involved in traditional energy sectors, because energy transition will require all pulling in the same direction.