The conclusion of two COPs (Conference of the Parties) at the end of 2022 could easily have passed you by. COP27’s climate focus switched emphasis from further mitigation ambition to resilience and adaptation, while preserving nature and biodiversity was the theme for COP15’s discussions.

Robert Spencer, Global Head of ESG Advisory Services, rounds up the key outcomes and practical solutions to take into 2023:

COP27 - cities rather than national level progress

Progress at COP27, at a governmental and national level, wasn’t as much as hoped with no clear definition on the short to mid-term milestones required to reach existing 2050 targets. However, non-state entity (cities, financiers, businesses and non-government organizations (NGOs)) initiatives have created a sense of optimism on implementation.

This included addressing key issues such as how buildings can be decarbonized, and the launch of a robust framework called ‘Integrity Matters’ on defining net zero commitments for non-state actors. These initiatives are breaking down high-level targets into more practical solutions for swift implementation. With this granularity, we are in a better position to take action that can then be scaled and make the big differences required.

A growing call for adaptation and resilience

Adverse climate impacts, originally envisaged as happening in decades time, are being experienced far more frequently now, so there is a pressing move towards having resilient infrastructure and transport in place. Governments at COP27 agreed on the way to move forward on the Global Goal on Adaptation, which will conclude at COP28 and inform the first Global Stocktake, improving resilience amongst the most vulnerable.

Funds for loss and damage

But the key breakthrough signed during COP27 was the creation of a specific fund for “loss and damage” giving a funding mechanism for poorer countries to receive compensation from richer nations for climate related damage.

a river running through a valley at sunset

With this granularity, we are in a better position to take action that can then be scaled and make the big differences required.

COP15 - a breakthrough for biodiversity

Business and financial engagement in the nature positive agenda is very strong with COP15 firmly putting biodiversity on the policy map. At the event, businesses and financiers were pushing negotiators to be more ambitious by setting stronger nature-based targets on a par with climate related ones. And there is visible pressure at country-level to follow through with national implementation of policies to value and enhance nature.

30 by 30 agreement protects nature

The major breakthrough for COP15 was the 30 by 30 agreement to protect 30% of all lands and oceans by 2030 within the global biodiversity framework. The fine print about what constitutes protection, how it is defined and what are the baseline starting points, will all need to be developed in the coming year.

Biodiversity markets, data and reporting

There is a growing awareness that biodiversity needs to become part of the market system in order to support financial flows and credit systems for protecting nature. Integrating nature-based solutions into the market system will require a significant uptick in the quality of nature-based data available to asset managers, so they can make decisions more likely to have a positive nature outcome.

The fine print about what constitutes protection, how it is defined and what are the baseline starting points, will all need to be developed in the coming year.

Key takeaways for ‘23

1. Understand forthcoming TCFD requirements

TCFD is really gaining global traction as a climate resilience framework and is moving from voluntary to mandatory over the next year or so in a number of jurisdictions including, France, Canada, the UK, Japan and New Zealand, among others. So, are you ready for climate reporting?

Nature-based solutions are expected to follow a similar reporting trajectory in three to four years with TNFD, so it’s wise to be prepared now by addressing the common barriers to reporting.

2. Get ready for resilience

Read the WorldGBC Guide to Climate Resilience and Adaptation in the Built Environment that provides actionable principles for implementing climate resilience and adaptation strategies across the built environment value chain.

3. Prepare for the rise of nature tech

As well as the regulatory framework for nature and biodiversity gaining prominence – there is a rise in nature tech to enable the measurement and evidence backed reporting of nature to support nature-based decision making.

At our AECOM Natural Capital Laboratories in Scotland and Australia, we’re developing pioneering technology to measure, analyze and assess natural systems effectively and accurately using our own natural capital accounting software, satellite imagery and virtual/augmented reality.

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