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COP27 Climate Summit: Some key statistics on risk and investment trends
As Egypt hosts the most important sustainability event of the year, COP27, the Middle Eastern country is pushing hard on making the summit about decarbonization implementation as opposed to climate commitments. However, given the weak global economy, high inflation, and geopolitical instability, we should not expect many breakthroughs coming out of this year’s summit. The over 100 countries participating will be negotiating the establishment of the Damage and Loss Fund (a fund to finance damage and losses suffered by most vulnerable countries), as well as the $ 100 billion yearly investment commitment for developing countries to address their climate adaptation and mitigation priorities. Nobody expects much progress on either front given the limited political capital of the largest polluting countries as well as the weak budget space to fill the climate financing gap.
While the short-term climate momentum may not look so positive, it is important also to look at the positives including the current market traction, capital markets investment and early-stage innovation that are happening across sustainability. Here are a few data points highlighting the short terms risk and the sustainability strong momentum regardless of the politics and the economy:
