What is COP27?
COP stands for Conference of the Parties, meaning a committee created after an international treaty is signed, tasked with making decisions about how that treaty is implemented. Specifically associated with the meetings of one particular committee created after United Nations Framework Convention on Climate Change (UNFCCC) thirty years ago. In June 1992, over 150 countries signed the UNFCCC agreeing to combat any harmful impacts on climate caused by humans.
This conference is arguably the most important climate event of the year. Politicians, diplomats, national government representatives, lobbyists, and other climate organizations attend.
What to expect this year:
From November 6th-18th COP27 is being held in Sharm-el-Sheikh, Egypt, which raises the question of why Egypt? Holding the conference in Africa gives lesser developed nations that are also the most affected by climate change (like Egypt), the opportunity to propose and lead negotiations to balance the power from Europe and the US.
One of the largest concerns heading into this year’s conference is how Russia’s invasion in Ukraine will add more geopolitical complication to the COP. Gas and energy prices have hit record highs across the world due to the ongoing war, increasing the fragility of global energy supply.
The main topic of discussion is based around establishing legally binding limits on emissions through carbon credits, forest and land preservation, and climate finance.
What are carbon credits?
Climate change subject matter welcomes new terminology to the conversation frequently, one of the most talked about is carbon credits. A carbon credit is simply a permit issued to companies involved in either a national or international carbon market, which basically allows them an allowance of emissions. Currently, one carbon credit grants a company to produce up to one tonne of carbon dioxide (or similar greenhouse gas) within a designated amount of time.
Source: Virdis Energy
In addition to apply for carbon credit, a company must provide a plan of how they will offset and reduce emissions independently. A few examples include installing wind and solar sources of energy, planting trees, or implementing software that is less energy intensive.
According to Reuters, The US is said to be advocating at COP27 for businesses to be more financially responsible for the energy transition by purchasing carbon credits. The goal is for the carbon credit proceeds to source new renewable energy projects to stop countries from burning coal and replace the use of other fossil fuels. More to come on this initiative expected mid-week.
Why should you care?
It is important for average consumers to follow along with the discussions happening out of COP27. Most efforts being made are following suit of The Paris Agreement from 2015, which outlined the severity of lowering global temperature by 1.5 degrees Celsius by 2050 to avoid the climate crisis reaching a point of no return.
What is GenHydro’s role?
GenHydro’s mission is to create a world with clean and universally accessible energy by producing low-cost emissions-free hydrogen and renewable energy. Our clean renewable energy production technology is ahead of schedule and ready to be part of the energy transition solution. We currently have multiple projects in motion that will have a production capacity equivalent to powering 15,000 homes per day.
Experience the GenHydro vision of producing reaction-based green hydrogen and kick-starting the renewable energy revolution.
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