While the conference is considered as an important step forward in global climate policy, there were countries that wanted to reduce the climate ambition at the very last moments of the meeting.
It was agreed that emissions must reduce 45% by 2030 (reference year 2010) and to net zero by mid-century.
COP26 agreed that starting from next year, commitments by countries will be evaluated annually, not every five years as currently. Furthermore, emission reductions shall be reported so that they can be compared in a transparent way.
The final statement of the conference refers to reduction of fossil fuels, not to a ban of them as was requested by many countries. The key question before the conference was whether countries would commit to the ban of coal. This failed but we can expect that there will be increased pressure on limiting use of coal.
One clear milestone was agreement on market mechanisms, meaning how emission reductions between countries shall be reported. This is important as without clear rules, there is a clear risk of double counting. As many of the emission reduction projects relate to forestry, this is an important aspect also for UPM. The agreement also clarified how additionality shall be measured, i.e., how to guarantee that the projects truly provide additional emission reductions. The agreement on market mechanism should enable emission reductions in sectors where they can be done most cost efficiently.
Main corporate sustainability reporting initiatives proposed new measures on increased transparency during COP26. Both IFRS and Science-based targets initiative created new ways to report on concrete measures. IFRS announced they are creating a new climate reporting standard. Science-based targets initiative announced their first net-zero standard which will also include the role of forests and land-use.
COP26 also agreed on "Glasgow leaders 'declaration on forests and land use". Over 100 countries pledged to halt and reverse deforestation and land degradation by 2030. In the plan, global leaders affirmed the role of forests in balancing greenhouse gas emissions and removals, adapting to the impacts of climate change, and maintaining healthy ecosystem services. UPM welcomes further recognition of the role of forests. We continue to promote the role of sustainable forest management and the role of substitution.
COP26 was a step in the right direction but also underlines the complexity of global agreements on climate change mitigation. The role of private sector commitments is critically important in achieving true emission reductions. UPM's own climate commitments go beyond the global agreement.
