COP27: COP27 Midterm Observations – Financial Services

To print this article, all you need to do is be registered or log in to

We are halfway through COP27, so (disregarding the intersessions that will take place in 2023) negotiations will “soon” begin to focus on Dubai, the venue for next year’s COP28 summit. Who knows how much progress will be made by then. A point to note is that COP27 is more of an “implementation” COP, rather than a COP with a grander task, such as ramping up climate ambition.

To follow up on this point, there seem to be signs of recognition that the 1.5 degree Celsius “target” of the Paris agreement may be unachievable, and that perhaps the focus should instead be placed on preventing further increases in global temperatures more generally (as opposed to meeting specific temperature goals).

Finance continues to be the focus of a multitude of forums. Common themes include gaps in delivering on existing pledges and the need for concessional finance (i.e. a loan is not climate finance if it is a regular loan). Discussions on the definition of “climate finance” continue. Calls for a loss and damage financing facility (see our previous blog) remain a recurring theme. Although not within the framework of the formal COP negotiations (and not strictly on the mobilization of finance, but more on its theoretical availability), Mark Carney, the former Governor of the Bank of England, was keen to announce on “Finance Day” that 130 billion dollars of capital under management are now available to limit global warming. Carney rightly went on to emphasize the requirement to “plug it in”, which remains a herculean task.

As for carbon markets, while the main principles governing market mechanisms were agreed last year at COP26, there is still a lot of technical work to be done. Ongoing discussions include the types of projects eligible for credits. Time is running out – by next year the ‘old’ CDM projects will have to be transferred to the ‘new’ Paris Agreement mechanism. With regard to country-to-country transfers of emission reductions (ITMO), discussions on the nature of the transfer register continue.

In terms of leadership ‘from above’, some expressed surprise that so many leaders attended the COP this year (although in the UK we have seen that absence provides a good opportunity for a bashing by the media and civil society, so that leaders can see participation as the path of least resistance.The US president, however, made a “late” entry and sought to assure other nations that the United States- United are back as the leader of the climate movement being hard to reconcile on the one hand, hailing hundreds of billions of dollars in renewable energy subsidies under the Cut Inflation Act, with releasing strategic crude reserves and encourage oil production. Such is the nature of geopolitics in 2022 and such is the challenge of promoting sustainable development in the midst of one of the world’s most difficult energy crises. islands with which we have been confronted for many years.

Visit us at

Mayer Brown is a global provider of legal services comprised of law firms that are separate entities (the “Mayer Brown Firms”). The Mayer Brown firms are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, two limited liability companies established in Illinois in the United States; Mayer Brown International LLP, a limited liability company incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales under number OC 303359); Mayer Brown, a SELAS based in France; Mayer Brown JSM, a partnership of Hong Kong and its associated entities in Asia; and Tauil & Checker Advogados, a Brazilian legal partnership with which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are registered trademarks of Mayer Brown law firms in their respective jurisdictions.

© Copyright 2020. Mayer Brown Practices. All rights reserved.

This article by Mayer Brown provides information and commentary on interesting legal issues and developments. The foregoing is not a complete treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action regarding the matters discussed here.

POPULAR ARTICLES ON: Finance and Banking of the United States

Beneficial Ownership Information: A Final Rule

Morrison & Foerster LLP

On September 29, 2022, the Financial Crimes Enforcement Network (FinCEN) released a final rule implementing beneficial ownership requirements for certain U.S. and foreign…

FINRA Facts and Trends: October 2022


Welcome to the latest issue of Bracewell’s FINRA Facts and Trends, a monthly newsletter devoted to condensing and digesting recent FINRA developments in the areas of application…

Comparative guide to secured loans

Collas Crill

Comparative guide to secured loans for the British Virgin Islands jurisdiction, see our comparative guides section to compare multiple countries


Add Comment