IOE@COP26: News and views

IOE and members from our global network brought the voice of business to COP26.

The International Organisation of Employers (IOE) actively participated at COP26 in Glasgow where an agreement was reached to strengthen targets to reduce global carbon dioxide emissions along with many other announcements and deals.

IOE, as an official observer organisation to the UNFCCC (UN Climate Change), represented our international network of over 150 employer organisations. We provided inputs and contributions as part of the “business and industry” constituency, liaised with potential partners and other business representatives and coordinated with IOE member organisations who were present.

IOE Secretary-General, Roberto Suárez Santos, took part in a high-level business dialogue, together with leading business experts, government delegates and representatives from multilateral institutions. Mr. Suárez Santos called for plans on sustainable economies to also focus on employment creation, coordination with the private sector and appropriate skills frameworks. This event, coordinated by the United States Council for International Business, was also attended by the UNFCCC Deputy Executive Secretary Ovais Sarmad, as well as the Co-Chair of IPCC Working Group III Jim Skea.

Neil Walker, Head of Infrastructure, Energy and Environment and Transport at Ibec, IOE’s member from Ireland, participated in an ILO event on 10 November. Mr Walker, representing IOE, focused on employment impacts of climate action and countries’ decarbonisation plans. He provided practical and expert insights into Ireland’s development of climate plans and how businesses are ensuring smooth implementation of sustainability priorities and ensuring job creation.

President of Business Unity South Africa (BUSA) Cas Coovadia, an IOE member, took part in a high-level event on just transition plans with a focus on Africa. Mr Coovadia, a member of IOE’s Management Board, highlighted the importance of working with employer organisations when developing economic and industry transition plans and also elaborated on a just transition partnership recently signed by the South African Government.

IOE Advisor Robert Marinkovic was a panelist at the last side-event of the Conference, coordinated by the Major Economies Business Forum which includes several IOE members. Mr Marinkovic spoke on the priorities for employer organisations looking ahead to next year as well as the importance of further deepening collaboration between governments and  employer organisations on adaptation and mitigation plans..

During COP26, IOE also launched a paper on human rights and climate change, offering business views on this important topic, and which will most likely continue to be debated in the build-up to COP27.

COP26 outcomes

Countries agreed to strengthen their 2030 targets for cuts to carbon dioxide (CO”) emissions in 2022through the Nationally Determined Contributions (NDCs). This is to try to keep temperature rises within 1.5C - which scientists say is required to prevent a "climate catastrophe". Current pledges, if met, will only limit global warming to about 2.4C. The number of countries pledged to reach net-zero emissions by 2050 passed 140 and according to analysis, these commitments now cover 88 per cent of current global greenhouse gas emissions and 90 per cent of global GDP. 2020 was the first deadline for submitting updated NDCs, a process that takes places every 5 years normally, which are then analysed in a Global Stocktake; the recently updated NDCs and their modalities have also been summarized in the NDC Synthesis Report.

The Pact is the first climate agreement explicitly planning to reduce persistent coal usage, responsible for about 40 per cent  of total emissions, although the text was changed in the last minute from ‘phasing out’ to ‘phasing down’ coal use and production. It also calls for progressively removing ‘inefficient’ fossil fuel subsidies and includes an important reference to a ‘just transition’ when decarbonising economies and industries. In practical terms, this means, among other elements, strengthening the efficiency of employment policies.

Another key part of the agreement was ensuring adequate financing is provided by -high-income countries for those with less capacity for adaptation, through the Adaptation Fund. Twelve years ago, at the climate summit in Copenhagen, rich nations made a pledge to channel US$100 billion a year to less wealthy nations by 2020, to help them adapt to climate change and mitigate further rises in temperature. This target was narrowly missed, with around 80$ billion provided in 2018; additional commitments made in Glasgow will push that to 100$ billion by 2023 according to analysis.

The next COP will take place in Egypt. IOE will set up a taskforce to further coordinate with our members and ensure a strong presence and engagement in the buildup. Please reach out to Robert Marinkovic (marinkovic(at)ioe-emp.com) in case of any questions or inquiries.