En+ Group, a leading vertically-integrated producer of low-carbon aluminium and independent hydropower, confirmed its commitment to achieving Net Zero at the COP26 UN Climate Change Conference in Glasgow. The two-week climate conference has been attended by the heads of state and business representatives from more than 120 countries.
One of the key COP26 initiatives has been the Glasgow Financial Alliance for Net Zero (GFANZ). It has grown 25-fold since April to include 450 firms from 45 countries. Participants include commercial banks, insurance and audit companies, pension funds, rating agencies and stock exchanges that control a total of $130 trillion (£95 trillion) in assets. This accounts for around 40% of global assets. In addition, more than 40 countries, including the United Kingdom, Poland, South Korea and Vietnam, have committed through the Global Coal to Clean Power Transition Statement to phasing out coal power in the 2030s, for major economies, or 2040s globally, and to stopping public funding for new coal-fired power plants.
Another key topic of the summit was the conservation of forests. According to the UN, 420 million hectares of forest have been lost over the past 30 years. This represents an area larger than India. Currently 1.6 million hectares of forest is being lost globally every year. More than 100 world leaders, including Russia, Brazil, the USA and Indonesia, have promised to end and reverse forest loss and land degradation by 2030, committing nearly $20 billion of public and private funds to protect and restore forests. This agreement is part of efforts to limit global warming to 1.5°C.
Vyacheslav Solomin, Executive Director of En+ Group said:
“The global community is ready not only to create commitments to sustainability, but also to take real action in line with the ESG agenda. The ambitious Net Zero goals announced at the summit can only be achieved through the combined efforts of all parties, including end users. In 2020, En+ Group called for mandatory carbon content and sustainability-related disclosure by metal producers, and for this transparency to be fully integrated with the existing trading system. This would enable buyers wishing to source responsibly and minimise the climate impacts of their procurement to make better-informed purchasing decisions. Today our call is especially relevant. It is important that market demand drives the growth of green initiatives.
Another driver is hydrogen. The share of gas generation must also increase, especially in the second pricing zone (Siberia and the Far East). For example, coal-based power plants in the Irkutsk region alone emit 17 million tons of CO2.”
Within the framework of COP26, conference attendees also discussed green financing, mass ecosystem restoration projects and other topics. En+ Group has held three joint panels in the Russian Pavilion: “Role of hydropower in the Energy Transition”, “Road to Net Zero. The Role of Carbon Pricing” and “Focusing on the Upstream: Key Challenges and Opportunities for Aluminium Sector Decarbonisation”. With the Climate Partnership of Russia, En+ Group also held a panel discussion “Interconnectedness of Nature and Climate. What can business do?”.