[co-author: Kerry Mackenzie]

Talks during the second day of the 2022 United Nations Climate Change Conference (COP 27) focused on climate finance. Here’s what business leaders need to know to keep up-to-date on event proceedings:

• U.S. Climate envoy John Kerry stated that on Wednesday, he will propose a new billion-dollar carbon credit program that will allow developed countries to help developing countries cut back on fossil fuel emissions. The announcement came soon after the president of the European Commission, Ursula von der Leyen, called upon developed countries to contribute to green financing for developing countries.
  • A German senior official expressed skepticism regarding the proposal, worrying that it would duplicate European efforts regarding carbon credit markets.
  • This may provide an elegant strategy for the United States to incentivize the transition away from coal and oil based energy while mobilizing climate financing to developing economies.
• The African Carbon Markets Initiative (ACMI) was launched by a report that set out plans to create a $1.5 billion a year voluntary carbon market by 2050.
• United Nations (UN) experts warned against “greenwashing.” The group set out a report detailing strict expectations for nongovernmental entities making net-zero pledges.
• Developing countries excluding China released a UN-backed report that calls for over $1 trillion from developed countries to combat and adapt to global warming.
• Scotland, Austria and New Zealand pledged around $50, $5 and $12 million respectively to climate loss and damage projects. Their announcements followed recent loss and damage pledges by Denmark and Belgium. Although these investments fell short of expectations, they represent a commitment to seriously consider the issue. This came as loss and damage funding was repeatedly highlighted by developing countries in the COP 27 high-level segment today and voted on to the official agenda on Monday.
• Tuvalu became the first country to call for a global “Fossil Fuels Nonproliferation Treaty.” The country’s Prime Minister (PM) Kausea Natano built on the proposal first suggested by the Vatican and scientists by contending “there is very [little] time to slow and reverse the increasing temperature.”
• The PM of Pakistan, Shehbaz Sharif, spoke about the “catastrophic” impact recent floods in the country have had on its citizens. He estimated that damage caused by the floods—which many attribute to climate change—will exceed $30 billion.