What to expect from the conference
- More ambitious pledges to move towards a global temperature target of 1.5 degrees above pre-industrial levels (which is roughly equivalent to net zero)
- The mobilisation of climate finance
- Finalising Article 6
Countries to commit to more ambitious climate targets
Scaling up climate finance
Agreement on Article 6
- Carbon accounting rules for the avoidance of double counting. For example, Brazil and India want to be able to count credits sold to other countries in their own emissions reductions figures.
- The automatic cancellation of credits under the international carbon market mechanism to ensure overall mitigation in global emissions. Some small island states are keen to ensure there is a schedule for cancellation. This is important because it would ensure that the market doesn’t become over saturated and ineffective. If rules are too weak there is a risk the mechanisms would be flooded by an abundance of meaningless credits.
Investment implications of COP26