New draft gets weaker but there’s now more cash: COP26 update

Climate talks are set to stretch into the weekend as delegates are still fighting over how to curb rising temperatures — and who will pick up the bill.

New draft texts released around dawn on Friday were a bit weaker than the previous version. The language calling on countries to have another go at their climate plans by next year has eased a bit — and now includes a line that amounts to a get-out clause.

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A closely watched line on fossil fuels and coal has survived the night, though it’s been tweaked after some resistance from countries including China. The promise now is to phase out “unabated coal,” and, in line with promises the G-20 has been making for a decade, phase out “inefficient” fossil fuel subsidies.

Ministers are set to meet later this morning to take stock of the negotiations — so watch for more pushback. Talks to establish rules for global carbon trading, six years in the making, hit new obstacles overnight.  That’s an important yardstick for success.

Key developments:

• Latest draft of text published; ministers to meet later
• Efforts to create global carbon market hit new obstacles
• China is likely to choose energy security over ending coal
• The endgame: what to look out for if you’re just tuning in

Latest draft of text published (8:14 a.m.)

A new draft of the a climate pact being debated at COP26 talks in Glasgow on Friday maintains most of the key elements climate-watchers were looking for — though with some tweaks.

The latest draft, which was negotiated overnight now “requests” countries to come back with better climate-action plans for 2030 by next year, instead of being “urged” to. It also allows for “different national circumstances,” which is seen as a kind of get-out clause.

The text slightly weakens language on asking for a phase-out of fossil fuels subsidies and coal. It now calls for the phase-out of “unabated” coal power and of “inefficient” subsidies for fossil fuels. That line has faced pushback, and many climate-watchers were expecting it to be axed by now.

In positive news for developing countries, there’s a call for rich nations to double the amount of money — by 2025 — they spend helping poor countries adapt to climate change.

Germany prepared if talks run past Friday (6:30 a.m.)

Germany is already preparing in case the conference misses the deadline of 6 p.m. local time Friday for a final agreement, according to the head of the nation’s delegation, Jochen Flasbarth.

“I’m planning on leaving here tomorrow, but we have already taken precautions in case it goes longer,” Flasbarth, a deputy environment minister, said early Friday in an interview with Deutschlandfunk radio.

“Above all, we have to agree on the final legal rules, otherwise the next few years will be very difficult in terms of implementing the Paris Accord,” he said. Outstanding issues that still need to be resolved include the exit from coal power, he added. An agreement between the U.S. and China to cooperate on climate this decade is the main achievement from the summit so far, Flasbarth said.

It’s the last scheduled day of COP26, though it’s likely talks will extend into the weekend.

© 2021 Bloomberg