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Wars, Trump and climate malaise |
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This week major climate events in Bonn and London were held as military conflicts escalated across the Middle East. Today’s newsletter looks at how delegates maintained focus on the continuing threat of global warming amid wars and other geopolitical distractions. For unlimited access to climate and energy news, please subscribe

Wars, Trump and climate malaise 

By John Ainger

As climate delegates walked into Bonn’s World Conference Center on the first Monday after the US attack on Iran’s nuclear sites, they were serenaded on loudspeaker by Doris Day’s “Que Sera Sera.” Whatever will be, will be.

It aptly summed up the mood of even the most veteran negotiators, who know that, with less than five months to go before United Nations climate talks in Brazil, keeping the world’s focus on the battle against global warming will be a herculean task.

US President Donald Trump is withdrawing the world’s largest historical emitter from the landmark Paris Agreement on climate change for a second time. The world is gripped by multiple conflicts, from Russia’s invasion of Ukraine to the conflict between Israel and Iran. Climate has slipped down the priority list and the multilateral foundation on which the Paris climate accord was built, is creaking.

This year’s summit, taking place in the Amazonian city of Belem, marks the 10-year anniversary of the UN talks in Paris, where countries committed to keeping global warming below 2C, and ideally below 1.5C. Yet the world now finds itself in a very different place.

“It is easy to succumb to the destruction and despair around us,” said Anne Rasmussen, lead negotiator for the Alliance of Small Island States. “It is imperative that we amplify to the world [how] very real this climate crisis is, even as we fall further and further behind.”

The two-week talks in Bonn gather thousands of climate technocrats, whose job it is to lay the foundation for a successful outcome at the main event of the year: the 30th UN-convened Conference of the Parties, or COP30. Unlike last year, which had a clear mandated goal — boosting climate finance — it’s still not clear what Brazil will need, or is aiming, to deliver.

For hosts, the uphill battle begins now. Before the summit, all 193 countries need to submit so-called Nationally Determined Contributions, NDCs, which detail how they plan to meet their share of the Paris Agreement goal. So far, less than 30 have done so and two of the biggest emitters — the European Union and China — are not among them.

Delegates during COP21 near Paris in 2015. Photographer: Patrick Kovarik/Getty Images

Those plans will then be compiled and presented by November to show just how far off the world is from the 1.5C objective. Even the most optimistic experts expect there to still be a significant gap. Brazil is under pressure to lay out a plan to close it, yet it risks a fight between climate-ambitious countries and fossil fuel producers, like Saudi Arabia, that could derail negotiations.

“The big question is how Brazil will deal with the problem when we fall short on NDCs,” said Alden Meyer, a senior associate at think tank E3G and a veteran COP-watcher. “Are we gonna say, ‘Too bad, we lost the planet,’ and go home?”

The complexity of the current geopolitical situation was laid bare early, when UN Secretary-General Antonio Guterres cancelled a speech he was due to make this week on climate action in order to deal with the fallout from the US strikes on Iran.

“We have military wars, we have trade wars. The attention of our political leaders has been devoted to other topics,” said Ana Toni, the chief executive officer of COP30, in an interview. “But we’ll also be able at COP30 to reinforce the multilateral system on climate that we need so much.”

Trump’s attendance at a NATO summit in the Netherlands also overshadowed negotiations in Bonn, as NATO leaders agreed to boost defense spending to 5% of GDP. The worry is that it will come at the expense of climate finance, just months after developed countries agreed to provide poorer nations with $300 billion by 2035. Brazil and Azerbaijan are due to present at COP30 a roadmap of how to further increase that figure to $1.3 trillion.

Read more: Defense Budgets Need to Fight War and Climate Change, Experts Say

Yalchin Rafiyev Photographer: Andrey Rudakov/Bloomberg

Much of the heavy lifting is expected to fall to multilateral development banks, like the IMF and the World Bank, but they were conspicuous by their absence in Bonn. According to Yalchin Rafiyev, Azerbaijan’s lead negotiator for their COP29 summit, out of almost 120 submissions for the finance roadmap, just two came from MDBs.

“Everything tells us that we should be prepared for a worst-case scenario,” Rafiyev said in an interview. “I hope that there is still room for us to pressure those who are expected to provide this finance to stick to their commitments.”

Yet the biggest elephant in the room was the superpower that wasn’t there. The US didn’t send a delegation to Bonn for the first time in decades, as it readies to leave the Paris Agreement early next year. Saudi Arabia took over its office space, a moment of symbolism that could define how COP30 unfolds.

For more on the geopolitics threatening to upstage COP, head to Bloomberg.com.

One more thing... 

There was one issue more than any other that overshadowed climate talks in Bonn this week: whether Belem is ready for COP. The Amazon metropolis is on the hook to host a world leaders summit and two weeks of negotiations with more than 50,000 delegates in attendance.

Recent COP summits have become renowned for price gouging, sending hotel prices spiraling to hundreds of dollars per night. But the concerns this year surpassed those. One developed country negotiator said they had been quoted $1 million for their team of 25 delegates to stay in a five star hotel that has not yet been built, working out at over $2,000 per night.

Aerial view of Parque da Cidade, the main venue for COP30, under construction in Belém, Brazil, in early May 2025. Photographer: Alessandro Falco

The concern is that the governments of developing countries and small island states will have to send smaller teams -- or none at all -- while civil society groups from those nations will be forced to stay home. Two booking platforms, one run by the government and one by a contractor, were still not available at the time of publication.

Both the Alliance of Small Island States and the Africa Group of Negotiators complained to the COP30 presidency about the lack of access, according to letters seen by Bloomberg. Some negotiators gathered in Bonn were still calling for negotiations to be moved to another city.

Brazil is “totally committed” to having both the world leaders summit and negotiations in Belem, Ana Toni, the COP30 CEO, said, adding that Brazil had passed laws last week so that attendees are protected against being ripped off. “I regret that this has happened.”—John Ainger

Deep debate 

90%
This is how much the European Commission wants the EU to cut emissions from 1990 levels. Yet recent strong resistance may force the bloc’s executive arm to delay that proposal.

Follow the leader?

"[China] is leveraging its early investment into green technologies not just for economic benefit but for geopolitical advantage as well. I think we are going to see that more pronounced, how these issues play into geopolitics."
Chuka Umunna
JPMorgan Chase & Co.’s global head of sustainable solutions
China is likely to step up efforts to use its clean-tech transition as a pathway to economic and geopolitical dominance, Umunna said during a panel at the Bloomberg Sustainable Business Summit on Thursday.

Postcard from London Climate Action Week

By Olivia Rudgard, Alastair Marsh, Natasha White and Yinka Ibukun 

In a strange year for climate action, London Climate Action Week flourished. Now in its seventh year, the citywide climate festival was double the size of 2024, with over 700 events, according to London-based founder Nick Mabey, a policy expert and former government adviser. Perhaps seeking a different political environment for their conversations, many delegates flew in from the US, making the event feel like a destination. In total, some 45,000 people attended from around the world. A similar event, Climate Week NYC, will take place in September. 

Amid global instability, delegates made their best attempts to make sense of this moment for climate action. Many events focused on carbon markets, green financing and corporate sustainability, and delegates looked ahead to this November’s COP30 and what progress might be made there. There was even a royal presence, as Prince William appeared at an event to showcase the Earthshot Prize, the award for innovative climate solutions, and declared tackling climate change a “team game.” 

While the global rollback in climate ambition has been much discussed, delegates offered a slightly more nuanced perspective. While climate action may no longer be the hot topic, there’s still plenty of appetite for change, especially with the costs of cleaning up after climate disasters become increasingly real. 

What we learned this week

Greenhushing is everywhere. While a rollback in green ambition has received a lot of attention in recent months, many speakers said companies were still pursuing their targets, just without talking about them in public. Peter Bakker, president of the World Business Council for Sustainable Development, said that 91% of companies WBCSD surveyed globally said they are investing the same or more than they were last year in decarbonization. Similarly, Sherry Madera, CEO of the environmental disclosure nonprofit CDP, said its data shows that the majority of companies are either maintaining or increasing their climate ambition. But, she said those conversations are happening behind a closed door. “I don’t think companies have the appetite to talk about this as much.”

But in some places, the rollback is real. Bill Winters, CEO of Standard Chartered, said pressure on the bank to be more sustainable had eased significantly. "Shareholders, creditors, others, they backed away almost entirely,” he said. “Our owners are no longer agitating for us to engage in anything that doesn't make money as it relates to climate change.”

It’s crunch time for the carbon market. Since the 2022 slump, the carbon credit industry has done its best to address greenwashing allegations, in an attempt to tempt back spooked buyers. This week the UK, Kenya and Singapore launched a new coalition to build demand, with France and Panama joining as early founding members. Its secretariat will be hosted by the UK-based Voluntary Carbon Markets Integrity Initiative. "The carbon market is at a crossroads. We are running out of time but we're also running out of excuses. What we do next will define whether this becomes the multi-trillion dollar solution that we strive for or another failed promise on the climate ledger,” said Juan Carlos Monterrey Gomez, Panama's special representative for climate change.

Insurers need to speak up. Laurence Tubiana, CEO of the European Climate Foundation, said at an event on Wednesday that insurers need to "speak louder” about the impacts of a warming planet on their ability to provide cover. While the insurance industry has been studying climate risks for decades now, only recently has the connection between insurance and climate change broken into the public consciousness, said Rowan Douglas, CEO of climate risk and resilience at insurance broker Howden, at the same event. “It was not until in the last two or three years, that in some very fashionable parts of the world, some very economically important parts of the world, influential people were suddenly unable to get their insurance, that this matter started being taken seriously.”

Worth a listen

Climate tech is not the hot investor thesis it once was a couple of years ago. After several record breaking years, and billions of dollars being poured into climate startups, venture capital investments are way down. 

This week on Zero, Akshat Rathi speaks with Mike Schroepfer, who runs Gigascale Capital, a venture firm focusing on climate investments, and used to be Meta’s chief technology officer. 

Schroepfer shares his views on the current investment climate, the danger of funding cuts to US research, and why demand for AI will prompt a new wave of energy innovation. 

Listen now, and subscribe on AppleSpotify, or YouTube to get new episodes of Zero every Thursday.

“Data Center Alley” in Sterling, Virginia. Photographer: Pete Kiehart/Bloomberg

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