COP27 decisions will help determine prospects for biodiversity talks

Figueres urges nature equivalent of Paris Agreement

Meanwhile, Christiana Figueres and COP21 President Laurent Fabius are among the signatories to a new statement that urges negotiators at the forthcoming COP 15 Biodiversity Summit in Montreal to commit to a strong parallel agreement to the Paris Agreement.

Other signatories include Manuel Pulgar-Vidal, President of COP20, and Laurence Tubiana, CEO of the European Climate Foundation and France's Climate Change Ambassador and Special Representative for COP21.

"Climate change is fast becoming a primary driver of biodiversity loss, while our accelerating destruction of nature is undermining its abilities to provide crucial services, including climate change mitigation and adaptation," the statement reads.

India and Australia to guide finance discussions

COP President Sameh Shoukry has appointed India's Minister of Environment, Forest and Climate Change, Shri Bhupender Yadav, and Australia's Climate Change Minister Chris Bowen to jointly progress discussions on finance.

However, their remit doesn't include the contentious issue of loss and damage.

Minister Bowen had earlier told the COP that Australia – which is bidding to host COP31 – is determined to "hold the world as close as possible to 1.5 degrees of warming".

Bowen also urged multilateral development banks to play their part in the fight against climate change.

"Our international financial architecture is built for a different time and for different challenges," he said.

"Some of our financial institutions are stepping up to this task," he said. "But others are not."

Multilateral development banks must be "wholeheartedly committed" to playing their part, he said.

Just transition

Meanwhile, Norton Rose Fulbright's South African team spoke at a COP27 panel session on the road to a just transition.

Matt Ash, Norton Rose Fulbright’s head of energy in South Africa, noted that South Africa’s recently released Just Energy Transition Investment Plan aims to speed the country's energy transition, which is estimated to require a US$99 billion investment over the next five years alone.

New transmission infrastructure accounts for a very large portion of the required investment, as the existing grid is heavily focused on connecting coal-fired generators in the north of the country, while the best renewable generation resources lie elsewhere, Mr Ash said.

Mr Ash also indicated that a significant amount of battery capacity would be required to complement and firm up the renewable energy generation capacity that is coming online.

He added that South African coal exports to Europe had increased significantly since the Russian invasion of Ukraine, with demand from China and India also expected to grow.

Tina Costas, Norton Rose Fulbright’s head of environment in South Africa, told the panel session that it was important for project developers to "follow the rules" when seeking approval for new projects, noting that this hadn't always been the case.

Ms Costas also stressed the importance of using environmental specialists with expert and local knowledge to avoid problems that can derail or delay a project.

Developers also need to engage meaningfully with stakeholders when seeking approval, she said.

James Ross, Senior Associate at Norton Rose Fulbright, said South Africa's Renewable Independent Power Producer Program (REIPPP) has so far involved seven bidding rounds since its launch in 2011.  A total of 112 projects have been successful in the bidding rounds, with a total capacity of 6422MW.

The REIPPP scheme has grown significantly, with the capacity procured in the last two rounds equal to that procured in the first four, Mr Ross said.

However he noted there have been some challenges.  For example, 25 preferred bidders emerged from bidding round five, which took place last year, but only three have so far reached financial close and signed power purchase agreements.