COP 27: Understanding the implications for investors

Last month global stakeholders gathered in Egypt for the 27th Conference of the Parties (COP) to begin international negotiations on climate change under the United Nations banner. During COP 27, which aimed to focus on implementation, countries agreed the Sharm-el-Sheikh Implementation Plan (COP 27 deal).

We have put together a short paper to summarise the below key outcomes against the objectives of COP 27, as well as the corresponding implications and considerations for investors.

• Climate change mitigation – referring to efforts to reduce or prevent emission of greenhouse gases
• Adaptation – referring to the process for human and natural ecosystems to adjust to actual or expected climate change and its effects in order to moderate harm or exploit potential benefits
• Finance – the financing of the climate transition is currently woefully inadequate to meet the requirements for net zero emissions
• Collaboration – required in order to streamline efforts towards priority areas and to ensure efficient use of financing