U.S. to Lead Infrastructure Talks; Forests Pledge: COP26 Update

(Bloomberg) -- Day two of global climate talks has begun with a fair bit of momentum. The U.S. and European Union are set to meet with representatives from developing countries to discuss infrastructure, and more news on methane is expected.  

Also up later is Mark Carney, who’s pushing banks to get greener, and BlackRock’s Larry Fink. While governments have failed to reach their own targets on climate finance, the hope is that the private sector will funnel more money into the energy transition, bringing the net-zero targets closer.

Hanging over the summit are two clouds. One is the energy crisis, which has forced countries to focus more on security of supply -- at least in the short-term. And U.S. President Joe Biden is battling opposition to his climate plans at home, undermining his credibility in Glasgow.

Key Developments:

• Biden unveils multipronged plan on methane
• Brazil will join methane pledge
• India is seen needing more funds to hit net-zero
• Countries promise to end deforestation
• Here’s what’s ahead for day two:

Read more: How a Global Carbon Market Could Accelerate Net-Zero: QuickTake

(All timestamps Glasgow, Scotland.)

Biden Seeks $9 Billion for Forests (10:20 a.m.)

President Biden said he would work with Congress to dedicate up to $9 billion of climate funding over the next decade to support efforts to conserve global forests. He said the appropriations request would come as part of a new U.S. forest plan designed to incentivize landholders and industry to prioritize conservation.

“Preserving our forest and other critical ecosystems is an indispensable piece of keeping our climate goals within reach,” the U.S. president said, adding that nations needed “to approach this issue with the same seriousness of purpose as decarbonizing our economies.”

World Oil Demand Above 100 Million B/D: BP (9:46 a.m.)

The world’s leaders may be discussing ways to curb fossil fuel use, but BP Plc says global oil demand is back above 100 million barrels a day.

Energy consumption is bouncing back just as oil and gas supply is suffering significant constraints, pushing prices to multiyear highs and threatening the world’s economic recovery. “Somewhere next year we will above pre-Covid levels,” BP Chief Financial Officer Murray Achincloss said on a conference call on Tuesday.

U.S., EU to Meet With Developing Nations (9:45 a.m.)

President Biden and the leaders of the European Commission, Canada, the U.K., and Japan are expected to meet with representatives from developing countries Tuesday to discuss the “Build Back Better World” infrastructure initiative designed to counter China’s Belt and Road program.

The leaders will hear from countries including India, the Congo, Nigeria and Barbados as they develop the program, which is intended to provide a contrast to Chinese infrastructure funding that lacks environmental protections and can leave poor nations heavily indebted, according to a senior U.S. official who discussed the meeting before it was publicly announced on the condition of anonymity.

U.S. officials are also planning a “listening tour” across Africa later this month designed to discuss potential clean infrastructure projects with government officials, private sector companies, and civil society. The visit will include trips to Ghana and Senegal.

Kew Gardens: Deforestation Pact Is Last Chance (9 a.m.)

London’s Royal Botanic Gardens, Kew, applauded a global pact to halt and reverse deforestation. But to make it work, leaders must follow best scientific practice, according to a statement from the organization.

“Halting deforestation has been promised before but failed hugely,” said Alexandre Antonelli, director of science at the gardens. “This is our last window of opportunity. What we need now is delivery, and enough details to hold our leaders to account.”

Unilever Says It Cuts CO2 Emissions by 75% (8:49 a.m.)

Food and personal-care products giant Unilever has reduced about 75% of carbon emissions from its operations and is using 100% green electricity to power its plants and offices, Chief Executive Officer CEO Alan Jope said in an interview with Bloomberg TV. Residual emissions “need high-quality offsets, and the current offset markets are frankly a little shaky,” he added. 

Jope said the LEAF Coalition, which seeks to combat deforestation by protecting specific forests, “will form a model for future types of climate finance.”

BlackRock Climate Finance Vehicle Draws $673 Million (8:25 a.m.)

The world’s largest asset manager has drawn in $673 million in funding as part of a plan to invest in climate infrastructure in emerging markets.

BlackRock says the money will go toward the Climate Finance Partnership, a public-private vehicle with a goal of accelerating the net-zero transition in developing countries. A consortium of 22 investors across the globe have committed to the project, which had an initial target of $500 million.

German Greens Leader Says G-20 Must Lead (7:15 a.m.)

The G-20 countries must drive the transition to economies where prosperity is based on climate-neutral energy policies instead of the burning of fossil fuels, according to Annalena Baerbock, co-leader of Germany’s Greens.

“It’s the big industrial nations that have led us into this disaster, and that means it’s the big industrial nations who have to lead,” Baerbock, who is likely to play a senior role in Germany’s next government, said in an interview with ZDF television.

“In Germany with renewables, we have already started this energy revolution in the electricity sector, and we need that now for all of industry,” she added. “I am convinced that we Europeans can get this done.”

Day One Review

Missed Monday’s action at COP26? Here’s a quick review of the key moments from the first day of climate talks:

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