Dear Madam or Sir,
Yesterday, after tough negotiations, the UN Climate Change Conference in Sharm el-Sheikh ended. The media had extensive coverage, which is highly appropriate when representatives of around 200 countries are struggling to master what is probably the greatest challenge mankind has ever faced.
This year, too, the conference had to be extended. The dispute over “loss and damage”, i.e. financial compensation for climate damage, had brought the conference to the brink of failure. But in the end, the result can be classified as historically relevant. For the first time in history, the world community has agreed to approve a fund to deal with climate damage in developing countries, with the money to go primarily to particularly vulnerable countries. The first step, however, is to set up a commission for the establishment of the fund, which will consist of 10 representatives of the industrialised countries and 13 representatives of the developing countries. This commission is to draw up recommendations on the many detailed questions, which will then be discussed and – if possible – decided on at the next UN climate conference in Dubai at the end of 2023.
In the final document from Sharm el-Sheikh, the states are also called upon to improve their largely inadequate climate protection plans in order to close the remaining gap to the 1.5-degree limit. The basis for this is still the Glasgow Climate Pact from last year. In addition, developing countries are to be supported in their transformation to a climate-friendly and socially acceptable economy. A work programme is also to be developed for this purpose. Among other things, international financial institutions such as the World Bank are to be reformed so that they are more strongly oriented towards climate protection and climate financing. Private investments are also welcome.
Of course, the main conclusion of the conference is that there are still many unanswered questions, such as the binding phase-out of fossil fuels, and the sad truth that we are still far from being able to stop the climate crisis. But the fact that such a result has taken place at all against the backdrop of the current, extremely difficult geopolitical situation can certainly be seen as positive.
From Germany, it is worth reporting that electricity consumption has fallen significantly in recent months. According to the German Association of Energy and Water Industries (BDEW), 4 percent less electricity was consumed in September and as much as 9 percent less in October. This corresponds to the decline in the first year of the Corona pandemic 2020.
Oil prices also dropped significantly last week. A barrel of North Sea Brent fell below the $90 mark for the first time since October.
Against this background and in the absence of fundamental driving factors, European pollution rights also fell for the third week in a row. Only in the middle of the week was there an upward break. The price briefly broke through the 77-euro mark, but was unable to hold its ground there.
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