While Climate Summit COP27 Will Under-Deliver, The Market Shifts Towards Sustainability Will Accelerate
US climate leadership was showcased at COP27 with President Biden projecting strength and ambitious during this time of global crisis
-Green tech and clean energy will be growing fast and global investment in sustainability could reach $ 5 trillion by 2025.
-The Cost of reaching Net-Zero will be high but the cost of unaddressed climate risk will be higher.
-COP27 climate summit will continue to build momentum and coalitions towards green growth without delivering breakthroughs in climate finance.
November 2022 was named the month of sustainability given that the COP27 Climate Summit is taking place during this time. These high-level meetings, however, will not produce any breakthrough given the global recession, high inflation, and geopolitical tensions due to Russia’s war in Ukraine. There will continue to be momentum towards the 2050 decarbonization targets, but we will fall short of concrete implementation of the climate commitments to keep the temperature increase to 1.5 C.
US Climate Leadership
President Biden’s participation, the only one attending among the top 3 polluters (US, China, and India) confirmed the US strong commitment to addressing climate risk. As the US president addressed the 110 countries’ leaders, he celebrated the big shift in green-growth investment at home, supported by strong policies for decarbonization and clean tech development. Most specifically, he presented some of his major accomplishments, including the Inflation Reduction Act, which is the strongest climate legislation ever enacted in the United States. This legislation provides $370 billion over 10 years to support clean electricity, electric vehicles, heat pumps and clean technology. He also presented the Bipartisan Infrastructure Law, which is the largest long-term investment on resilient infrastructure providing $550 billion for roads, bridges, and mass transit, water infrastructure, resilience, and broadband. These laws provide strong incentives for all businesses to produce clean energy and cleantech in the U.S.