Glasgow climate Submit has agreed to raise ambitions to end the use of fossil fuels by 2030. Even though, the officials settled on ‘’ phasing down’’ rather than ‘’phasing out’’ use of coal. It will be harder for nations depending on fossil fuels for major industries including Australia. Matt Kean, the new NSW treasurer made predictions about the fuel industry. He believes the challenges will get more difficult to handle. He says, ‘’ Glasgow just accelerated where the market was already going. The fossil fuel industry is going to find it harder to get insurance, raise capital or refinance their operations.’’
Also, Glasgow’s member states were pressed to return after a year in Egypt for Cop27. Rather than waiting for five years to see the results. However, analysts believe the rules set in Glasgow for the international carbon market under article six of the Paris Climate Accord may benefit Australia. Since it is both seller and buyer of Carbon credits.
‘’ The shifting of global economic realities is the water in which Cop is swimming, ‘’ said Tennant Reed, a senior adviser at the Australian Industry group. ‘’ The economics of coal for power has already become quite favorable.
Impact of fossil fuels on Climate
The major reason for the focus on fossil fuel elimination in COP26 is its severe impacts on the environment. Fossil fuels are hydrocarbons that release carbon dioxide when burned in the presence of oxygen. Carbon is a greenhouse gas and is among the leading cause of global warming. Experts believe if we stop using fossil fuels today, global warming would certainly slow down. However, greenhouse gas removal from the atmosphere needs to happen in the long run.
Key points of COP26
Major key points of the Climate conference:
- Accelerate the phase-out of coal
- Restrict deforestation
- Speed up the shift to electric vehicles
- Encourage investment in renewables.
- Protect and restore ecosystem
- Build defenses, warming systems, and resilient infrastructure to avoid loss of livelihoods, homes, and lives.
- Mobilize at least $100bn in climate finance per year by 2020
Reed said, ‘’ I think there’s warming there for Australia. We can’t assume that just because we have pretty high-quality renewable resource centers… that we’re going to automatically be an energy superpower.’’
Also, the shift evident at the Climate Conference in Glasgow that growing global competition for leadership in the race to make hydrogen from renewable energy to replace oil and gas.
