THIS MATERIAL IS A MARKETING COMMUNICATION.
Key Takeaways of COP27
The 27th United Nations Climate Change Conference of Parties (COP27) was held between the 6th and 18th of November in Egypt. World leaders, policymakers and climate delegates from nearly 200 countries attended to review the progress made by countries since the Paris Agreement.
Key Highlights from
- COP27 was positioned as the “Implementation COP” whereby outcomes are primarily focused on work programmes to mitigate and adapt to climate change
- COP27 made the landmark agreement to establish a loss and damage fund –a financing facility to finance developing countries most vulnerable to climate disasters
- COP27 reaffirmed the global ambition to lower global warming to 1.5C and to phase down coal. The inclusion of “low emissions energy” text alongside renewables suggests openness towards natural gas or coal with carbon capture and storage
- COP27 saw some Parties, such as the EU and Turkey, revise Nationally Determined Contributions (NDCs) to more ambitious emissions reduction targets
- COP27 saw the establishment of more partnerships and alliances, for example:
- The US, EU and others agreed on Indonesia’s US$20bn Just Energy Transition Partnership to accelerate Indonesia’s phase out of coal use
- China and US agreed to re-engage in climate cooperation after the G20 Leaders’ Summit at Bali during the second week of COP27
- Increased global and investor collaborations to address and halt deforestation
In this article, we discuss key takeaways from
Climate Adaptation – Milestone Fund on Loss and Damage
- “to establish a fund for responding to loss and damage whose mandate includes a focus on addressing loss and damage” and particularly for “assisting developing countries that are particularly vulnerable to the adverse effects of climate change”; and
- “Establish a transitional committee on the operationalisation of the new funding arrangements for responding to loss and damage and the fund”.
Parties also decided on the operational structure of the Santiago Network – an organisation established as part of
Climate Mitigation – Stagnant Ambitions for 1.5°C
The cover decision for this
Nonetheless, we saw the ramp-up of some emissions reduction targets at
The Sharm el-Sheikh Implementation Plan highlights that a global transformation to a low-carbon economy is expected to require investments of at least USD 4-6 trillion a year4. During the first few days of
Beyond climate mitigation and adaptation – carbon markets, deforestation, greenwashing
Other themes that were apparent during
Regarding Article 6 of the Paris Agreement (the rulebook that acknowledges and allows countries to pursue voluntary cooperation, via market mechanisms like carbon trading, to achieve emissions reduction targets as set out in their Nationally Determined Contributions (NDCs)), some progress was made at
Lastly, greenwashing was also a topic that was featured in
The ultimate 1.5C target was reinforced in
The global pressure to decarbonise will remain and will likely only increase over time. Similarly, Asia’s relevance to decarbonisation will also only continue to increase given the region’s dominance in the supply chain for low-carbon technologies as well as the delivery of the region’s own decarbonisation plans.
Staying Ahead with Mirae Asset’s Latest Insights
1. Source: HSBC Research, November 2022
2. Source: Climate Home News, November 2022
3. Source: Reuters, November 2022
4. Source: Secretariat of the United Nations Framework Convention on Climate Change, November 2022
5. Source: Carbon Brief, November 2022
6. Source: Daiwa Research, November 2022
7. Source: HSBC Research, November 2022
8. Source: IOSCO, November 2022
9. Source: United Nations, November 2022
Disclaimer & Information for Investors
No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.
The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KIIDs can be obtained from www.am.miraeasset.eu/fund-literature . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary/.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Hong Kong: It is intended is for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Singapore: It is not intended for general public distribution. The investment is designed for Institutional investors and/or Accredited Investors as defined under the Securities and Futures Act of Singapore. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Monetary Authority of Singapore. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.
Australia: The information contained in this document is provided by Mirae Asset Global Investments (HK) Limited (“MAGIHK”), which is exempted from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) (Corporations Act) pursuant to ASIC Class Order 03/1103 (Class Order) in respect of the financial services it provides to wholesale clients (as defined in the Corporations Act) in Australia. MAGIHK is regulated by the Securities and Futures Commission of Hong Kong under Hong Kong laws, which differ from Australian laws. Pursuant to the Class Order, this document and any information regarding MAGIHK and its products is strictly provided to and intended for Australian wholesale clients only. The contents of this document is prepared by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Australian Investments & Securities Commission.
Swiss investors: This document is intended for Professional Investors only. This is an advertising document. The Swiss Representative is 1741 Fund Solutions AG, Burggraben 16, CH-9000 St. Gallen. The Swiss Paying Agent is Tellco AG, Bahnhofstrasse 4, CH-6431 Schwyz. The Prospectus and the Supplements of the Funds, the KIIDs, the Memorandum and Articles of Association as well as the annual and interim reports of the Company are available free of charge from the Swiss Representative.
UK investors: This document is intended for Professional Investors only. The Company is a Luxembourg registered UCITS, recognised in the UK under section 264 of the Financial Services and Markets Act 2000. Compensation from the UK Financial Services Compensation Scheme will not be available in respect of the Fund. The taxation position affecting UK investors is outlined in the Prospectus. This document has been approved for issue in the United Kingdom by Mirae Asset Global Investments (UK) Ltd, a company incorporated in England & Wales with registered number 06044802, and having its registered office at 4th Floor, 4-6 Royal Exchange Buildings, London EC3V 3NL, United Kingdom. Mirae Asset Global Investments (UK) Ltd. is authorised and regulated by the Financial Conduct Authority with firm reference number 467535.
Copyright 2023. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.