Global headwinds for Cop27 climate talks

High inflation and interest rates will hamper project development, but progress is still being made in key areas, says Energy Transitions Commission

The economic and political situation ahead of November’s Cop27 climate talks is highly challenging, with geopolitical tensions and rising inflation threatening to hamper progress, according to a report from thinktank the Energy Transitions Commission (ETC). There has been very limited progress towards stronger country commitments in the form of either Nationally Determined Contributions (NDCs) or mid-century net-zero targets since Cop 26, with the exception of a stronger commitment from Australia. The Intergovernmental Panel on Climate Change’s assessment of climate models, published in 2021, suggests that, if the world is to have a 50/50 chance of limiting warming to 1.5°C, total emissions