Climate Summit Recap: Key Outcomes and What Comes Next

The Environmental and Energy Study Institute (EESI) invites you to view a briefing that reviewed what took place during the international climate negotiations in Egypt (COP27) and why it matters for Congress.

With dozens of events and negotiating sessions happening at any one time during the two weeks of a U.N. climate summit, it can be challenging to keep up with all the details. This briefing reviewed the key outcomes of COP27—and what they mean for Congress—and provided context and nuance to the main headlines coming out of the meeting. Panelists provided perspectives and key takeaways from the federal government, U.S. states, philanthropy, and nongovernmental organization perspectives.

 

Highlights

KEY TAKEAWAYS

COP27 was an opportunity for U.S. leaders to showcase the Inflation Reduction Act (P.L. 117-169) on the international stage and to help other countries enable greater ambition by working with the private sector, bilateral partners, and multilateral actors. In the negotiations, countries agreed to a groundbreaking decision to establish a fund for addressing loss and damage, the culmination of 30 years of efforts by developing countries. During COP27 and the G20 Summit, President Biden announced a new Just Energy Transition Partnership with Indonesia. The Just Energy Transition Partnerships are designed for the United States and other developed countries to work with developing countries that are large emitters to reduce their greenhouse gas emissions. COP27 saw more conversation on aligning the practices of multilateral development banks and other financial institutions with the Paris Agreement. The Prime Minister of Barbados, Mia Mottley, launched the Bridgetown Initiative, which calls for a transformation of the financial system to make it more fair and just. Congressional delegations attended COP27, including members from the House and Senate as well as Republicans and Democrats.

 

Senator Jacky Rosen (D-Nev.)

• It is crucial that Congress remains engaged in the process and goals of the United Nations Framework Convention on Climate Change (UNFCCC) to address climate change.
• The climate crisis presents a serious threat to the world, and Nevada is feeling the effects through extreme heat, drought, and more frequent wildfires.
• Taking action to address these issues will save lives, and it presents an opportunity for the United States to be the leader in clean energy jobs.
• Clean energy manufacturing will increase U.S. manufacturing competitiveness and ensure that the United States leads the world in fighting for a clean, renewable future.
• The U.S. Congress can continue to take legislative action to address the climate crisis in a bipartisan way while using such action as an opportunity to create good-paying jobs.

 

Jesse Young, Senior Advisor, Special Presidential Envoy for Climate, U.S. Department of State

• There are two realms of country-to-country diplomacy taking place during the annual Conference of the Parties (COP). One area is the negotiations that are based on the formal agenda during which U.S. negotiators work with their counterparts from 196 countries and the European Union to develop the framework, guidelines, rules, and implementation of the Paris Agreement. The other realm, the political track, is focused on bringing together countries as well as businesses, nonprofit organizations, and international organizations to follow up on existing and take on new climate commitments. For example, the Global Methane Pledge was a commitment developed through this political track of work.
• The Biden-Harris Administration is focused on an all-of-government approach to address climate change, and this was showcased at COP27. In addition to President Biden, every cabinet-level agency was represented at COP27, with attendees including Secretary of Energy Jennifer Granholm, Environmental Protection Agency Administrator Michael Regan, Department of Agriculture Secretary Tom Vilsack, Director of the National Economic Council Brian Deese, Chief Executive Officer of the U.S. International Development Finance Corporation Scott Nathan, and President and Chair of the Board of the Export-Import Bank of the United States Reta Jo Lewis.
• COP27 was an opportunity to showcase the Inflation Reduction Act (IRA) (P.L. 117-169) on the international stage and to help other countries enable greater ambition by working with the private sector, bilateral partners, and multilateral actors.
• The State Department assesses the success of COPs by asking if the globe is enhancing climate ambition and if the world is getting closer to meeting the Paris Agreement goals. In general, countries have made a lot of good progress in response to these metrics, though the world is still not moving fast enough in addressing climate change.
• At COP27, countries held the line on ambition commitments made in Glasgow at COP26. Thirty countries, including Egypt, Mexico, and Australia, have strengthened their nationally determined contributions (NDCs) since COP26. The United States will provide support to Mexico to meet its new climate target.
• Around each COP, the International Energy Agency (IEA) assesses what progress would be made in reducing global warming if every country does what it has committed to do. At COP26, the IEA estimated that global average temperature would rise by 1.8°C (3.2°F). At COP27, the estimate was around 1.7°C (3.1°F) of global average temperature rise.
• There is a lot more to do, particularly in the area of international climate finance, which includes figuring out new pathways to generate funds.
• During COP27 and the G20 Summit, President Biden announced a new Just Energy Transition Partnership with Indonesia. The Just Energy Transition Partnerships are designed for the United States and other developed countries to work with developing countries that are large emitters to reduce their greenhouse gas emissions. The partnership with Indonesia includes $10 billion in new donor finance from developed countries, which is going to leverage another $10 billion in private finance to help Indonesia peak its carbon emissions seven years early and reach net zero by 2050.

 

Brendan Guy, Director, International Climate, Natural Resources Defense Council

• Each year, COP serves as a forcing function and a diplomatic leverage point that brings commitments and initiative forward to address climate change.
• At COP27, the following major announcements took place:
  • The United States and Indonesia announced a new Just Energy Transition Partnership.
  • South Africa and partner countries had announced a Just Energy Transition Partnership at COP26, and, ahead of COP27, they released a more detailed investment plan, which identifies a need of $68 billion over the next five years.
  • Egypt announced a $500 million deal with the United States, Germany, and the European Bank for Reconstruction and Development to transition Egypt to renewable energy and reduce the country’s natural gas consumption. As part of the deal, Egypt will enhance its nationally determined contribution by June 2023.
  • China signaled that it is developing a methane action plan. China’s methane emissions are a fifth of the global total, so China having a rigorous plan to reduce methane emissions is critical.
  • The United States and Ghana are chairing a new Forests and Climate Leaders’ Partnership, which will focus on forest loss and land degradation.
• COP27 saw improvements in climate ambition, including:
  • India is on track to exceed its Paris Agreement targets because of large scale renewable energy deployment. The country has a target to deploy 500 gigawatts of renewable energy by 2030.
  • China is on track to achieve its NDC, but must continue to do more this decade. Research suggests that China can peak its carbon dioxide emissions well before 2030 and begin decreasing emissions significantly this decade.
  • Despite setbacks from the war in Ukraine and the resulting energy crisis, the European Union is working hard to implement the European Green Deal, which aims to reduce emissions by 55 percent this decade. The European Union has indicated that it may be able to increase this target to 57 or 58 percent emission reductions.
  • The Inflation Reduction Act was welcomed by the rest of the world. Analysis suggests, if fully implemented, the IRA will reduce domestic emissions by about 40 percent this decade. It must be implemented swiftly and robustly for the United States to move towards its commitment of 50 to 52 percent emission reductions by 2030.
  • Brazil recommitted to zero deforestation and degradation. This has the potential to shift the dial in terms of the global emissions trajectory.
• Not all major emitters have aligned their NDCs with the goal of keeping global average temperature rise below 1.5°C (2.7°F). The U.N. Secretary-General António Guterres is hosting a summit in September 2023, alongside the U.N. General Assembly, to provide a platform for leaders from these countries to make announcements about updated commitments.
• Developed countries still have not met their $100 billion per year commitment to mobilize climate finance for developing countries.
• At COP27, countries and observers emphasized that the United States is still not pulling its weight in providing climate finance, despite making major strides on climate mitigation.
• COP27 saw more conversation on aligning the practices of multilateral development banks and other financial institutions with the Paris Agreement. The Prime Minister of Barbados, Mia Mottley, launched the Bridgetown Initiative, which calls for a transformation of the financial system to make it more fair and just.

 

Preety Bhandari, Senior Advisor, Global Climate Program and the Finance Center, World Resources Institute

• Climate loss and damage is inevitable because there are 3.6 billion people, or almost 40 percent of the world’s population, living in regions that are vulnerable to adverse impacts of climate change.
• Dealing with loss and damage is already happening, including in the United States. For example, the Biden-Harris Administration recently set aside $75 million for three tribal communities in Alaska and Washington state to relocate to higher grounds.
• There are three particular elements to focus on concerning loss and damage at COP27: loss and damage as an agenda item, the Santiago Network on Loss and Damage, and funding arrangements for loss and damage.
• COP27 was the first time that countries agreed to an agenda item on loss and damage finance.
• The COP27 agenda item and outcome reinforced the understanding established by the Paris Agreement: loss and damage funding for vulnerable countries is not about compensation and liability, but about collaboration and facilitation.
• At COP27, countries agreed on the full operationalization of the Santiago Network on Loss and Damage to provide technical assistance to vulnerable countries facing adverse impacts of climate change.
• Countries also agreed to a groundbreaking decision to establish a fund for addressing loss and damage, the culmination of 30 years of efforts by developing countries. The decision established a dedicated fund and set up the process to operationalize it, including creating a transitional committee to generate recommendations.
• Adaptation was largely overshadowed during COP27 because of the emphasis on loss and damage; however, adaptation continues to be important to vulnerable countries.
• Developing countries were looking to see progress on the commitment made at COP26 to double adaptation finance. Negotiators also continued work on the global goal on adaptation. Countries agreed at COP27 to develop and operationalize a framework for the global goal on adaptation by COP28.
• At COP28, the United States needs to continue showing leadership to ensure that Paris Agreement goals are met.

 

Casey Katims, Executive Director, U.S. Climate Alliance

• The U.S. Climate Alliance is a coalition of 24 governors founded in 2017 when President Trump announced that the United States planned to withdraw from the Paris Agreement.
• States carry out a significant portion of U.S. climate action because they have jurisdiction over key areas for emission reductions, like transportation and power, and they have a greater ability to innovate and push the envelope on climate action.
• State action and subnational actors are essential to achieving climate goals.
• According to the report, Full Speed Ahead: States Delivering the Next Generation of Climate Action, in the last 15 years, the 24 states and territories in the U.S. Climate Alliance have reduced emissions by 24 percent.
• The IRA was a key part of the conversation at COP27, and states play an important role in IRA implementation because most of the funding will flow through state governments. For example, the $27 billion for the Greenhouse Gas Reduction Fund and $5 billion for the Climate Pollution Reduction Grants will both flow through states.
• The U.S. Climate Alliance has been showing up at COP negotiations for years. Six governors attended COP26 and two governors were on the ground at COP27.
• At COP27, the U.S. Climate Alliance participated in high-level meetings with U.S. state officials and international counterparts to discuss how to enhance the role of subnational governments within the UNFCCC process.
• The U.S. Climate Alliance aims to provide durability and credibility to U.S. climate action discussed at COP27. Regardless of what happens at the federal level, U.S. states provide a substantial backbone for climate action in the United States.

 

Q&A

 

Q: What was the United States’ role at COP27?

Young

• The United States convenes world leaders and has an important bilateral relationship with China that can help advance climate action.
• As one of the world's largest financial hubs, the United States also plays an enormous role in leveraging private sector investment in climate action.
• Congressional delegations attended COP27, including members from the House and Senate as well as Republicans and Democrats. It is valuable for all branches of the federal government to be engaged with international climate governance.

Guy

• The United States has historically taken a leadership role in bringing other large emitters, like China, to the table to agree to more ambitious mitigation targets. This year, the United States put special emphasis on bringing more adaptation finance to Africa.
• There is probably no single force more effective, or with more tools and influence in this process, than the United States.

Bhandari

• A critical moment at COP27 that demonstrated the influence of the United States was when President Biden spoke to Chinese President Xi Jinping, after which there was a notable and positive shift in the negotiations.
• The United States was the last country holding out on agreeing to create financial arrangements for loss and damage, and its decision to ultimately agree to the fund was important for retaining trust with developing countries.
• The role that the United States plays will always be important and influential.

Katims

• The U.S. Climate Alliance would not exist if it was not critical for the United States to have strong footing in these conversations.
• The world cannot achieve climate goals without the United States.
• The United States, both on the state and federal level, sets an example of how to move large economies toward a low-carbon and resilient economy.

 

Q: What did Republican engagement look like at COP27?

Katims

• The U.S. Climate Alliance is bipartisan and has Democratic and Republican governors as members.
• There is bipartisan durability and support across the ideological spectrum for climate action.
• Republican Indiana Governor Eric Holcomb attended COP27. He showed up because he understands the economic and job benefits of clean energy.

Young

• There is significant partisan disagreement on the international climate agenda. But, there is also a lot more space for overlap and agreement than you might think. For example, there is bipartisan support for promoting American innovation and American exports, holding other large emitters accountable, and making sure that trade barriers are fairly enforced on the carbon intensity of our exports.
• The State Department is looking to Congress to include international climate finance in appropriations for fiscal year 2023. This funding allows the State Department to hold other emitters accountable, protect vulnerable populations, promote American exports, and champion American innovation.

 

Q: What does the change in the U.S. position on loss and damage mean going forward? Are there things that might be possible now in the lead-up to COP28 that would not have been possible before?

Bhandari

• Once the United States agrees to a particular decision, such as the creation of a loss and damage fund, it puts all its might behind it.
• Now that it has committed to a loss and damage fund, the United States will be very integral in creating the funding arrangements over the next year.
• President Biden spoke at COP27 about contributing to the Global Shield, a World Bank initiative to help developing countries access disaster recovery funding. This commitment will hopefully serve as a model for other innovative methods the United States and other countries can employ to finance loss and damage.

Guy

• This change opens up opportunities for the United States to play a powerful and constructive role in mobilizing resources at scale to address loss and damage.
• The United States’ voice and its vote in international financial institutions can help bring more ambitious and more innovative finance solutions to the forefront.

 

Q: Were there any advancements on how countries report on their greenhouse gas emissions at COP27?

Katims

• At COP27, the High‑Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities launched a report commissioned by the U.N. Secretary-General called, Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions. The Expert Group’s focus is to tackle greenwashing and ensure that businesses and governments actually meet their net-zero emission commitments.
• This report suggests limiting the role of carbon offsets in net-zero commitments and instead honing in on actual carbon reduction.
• U.S. Climate Alliance states are already doing work that aligns with the report. Most states do not count offsets in emission goals and instead focus on mitigation and natural climate solutions.

Young

• As of COP27, 150 countries have now committed to the Global Methane Pledge. Ninety-five percent of countries that are committed to the Global Methane Pledge, which is about 75 percent of the world, have agreed to include methane in their NDCs going forward. This is important because countries are not required to include non-carbon dioxide greenhouse gases in their NDCs.
• There is an immense amount of work going on around satellite tracking of methane emissions, and fugitive methane emissions in particular.

Guy

• National accounting processes through the UNFCCC are quite slow, so they are usually about two years out of date. Having more up-to-date information is critical to inform decision-making. One effort to provide more real-time data that was officially launched at COP27 is Climate TRACE.

 

Q: How do critical minerals fit into international climate conversations?

Young

• The Office of the National Climate Advisor at the White House is working through domestic supply chain issues.
• There has been a lot of attention from other countries on the domestic content requirements in the IRA.
• If we are going to be building out global capacity to do things like build electric vehicles, some of it should be built here in the United States. Why not create those supply chains here so we can meet unmet demand?

 

Q: What announcements coming out of COP27 from a country, group of countries, or sector do you think could be the most impactful in reducing emissions or increasing resilience to climate impacts?

Guy

• The Bridgetown Initiative could be very impactful in reforming the international financial architecture to be more responsive to mitigation, adaptation, loss and damage, and other needs.

Bhandari

• There was a lot of important woman power at COP27.
• Barbados Prime Minister Mia Mottley and her Bridgetown Initiative have been critical in shifting the discourse on the financial system and providing some tangible actions.
• First Minister of Scotland Nicola Sturgeon stood out at COP26 when she made the first financial commitment on loss and damage, and she then doubled her commitment on loss and damage at COP27
• Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva introduced new efforts the IMF will undertake to build resilience to climate change.
• The U.N. Secretary-General announced the Executive Action Plan for the Early Warnings for All initiative that sets a goal for all people to have access to early warning systems within the next five years.

Katims

• The U.S. Environmental Protection Agency's supplemental methane rule was a very important announcement. Methane is an extraordinarily potent greenhouse gas with huge warming potential.

Young

• Egypt, the United States, and Europe launched an effort to help Egypt retire aging fossil fuel infrastructure and build renewable energy, which will free up some natural gas that Egypt produces for export to Europe.

 

Q: What is your topline message for people to take away about COP27?

Young

• The United States cannot do more on climate change at the international level unless Congress appropriates money to spend overseas to help other countries combat the climate crisis.

Guy

• The United States’ role and leadership, especially on climate finance, cannot be overstated. Leading in these areas is absolutely essential to addressing climate change.

Bhandari

• In this multi-polar and multi-crisis world, the role of the United States in rebuilding trust and regaining lost ground in the multilateral system where vulnerable countries have a voice will be critical moving forward.

Casey

• The United States will not meet its climate goals with federal action alone. The federal government depends on and will need state and local governments. We need an all-levels of government approach.

 

Compiled by Elina Lingappa and Nick Solis and edited for clarity and length. This is not a transcript.

 

This briefing was part of a Congressional briefing series, What Congress Needs to Know About COP27:

Key Findings from the Newest Global Assessment Report on Climate Change

Climate Change Loss and Damage

Natural Climate Solutions

What’s on the Table for the Negotiations?

Climate Summit Recap: Key Outcomes and What Comes Next

To learn about all the briefings in the series, visit eesi.org/cop27-briefings.