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Fossil fuel subsidies, coal in new Cop 26 text: Update

  • Market: Coal, Crude oil, Emissions, Natural gas, Oil products
  • 13/11/21

Adds details on plenary session

Speeding up the phasing out of "inefficient" fossil fuel subsidies and unabated coal-fired power generation remain in the latest version of the UN climate summit Cop 26 cover decision.

The third draft was published this morning after negotiations went past yesterday's 18:00 GMT deadline. The text has had the phrase "recognizing the need for a just transition" appended to it. Fossil fuels have never appeared in the final text of a Cop summit before although they have featured in earlier drafts.

The US and EU strongly back the inclusion of language on phasing out fossil fuel subsidies and coal-fired power but this is being resisted by some major fossil fuel producers.

A plenary session began this afternoon to allow parties to comment publicly on the latest draft, but it was close to five hours later than initially planned as countries engaged in last-minute negotiations. India, China, South Africa and Nigeria spoke at the plenary to lodge their concerns regarding the text.

South Africa and Nigeria both focused on fossil fuels subsidies. India objected most vehemently to the language on both coal and fossil fuel subsidies while China suggested that there were adaptions to the text that would make it viable. Australia said it "can live with" the text as it is. Brazil also said it accepted it.

The latest draft text also "invites" countries to consider further actions to reduce non-carbon greenhouse gases "including methane" by 2030. Russia, Australia and China did not sign the US-EU global methane pledge last week although a bilateral agreement between the US and China does include a commitment from Beijing to present a plan to cut methane next year. Russia has said that sanctions hinder its investments to reduce methane.

Cop 26 president Alok Sharma said he aims to get a final decision on the text by the end of today but previous Cop summits have run much further over time.


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