What is COP26 and why is it important?
COP26 is the 26th annual meeting of the ‘Conference of the Parties', a UN-convened forum where the world's governments gather to tackle climate change. It was originally due to take place in 2020, but was delayed by the Covid pandemic.
This year's meeting has a particular significance. To understand why, we need to look back to another critical COP meeting - COP21 in Paris, in 2015. This was the meeting where for the first time, governments agreed on a common objective to limit global warming to well below 2 degrees, and aim for 1.5 degrees - known as the Paris Agreement. Countries committed to bring forward national plans (Nationally Determined Contributions, or NDCs), setting out how their plans to cut emissions - and agreed a five-year review cycle to update these plans, with the upcoming COP26 meeting the deadline for these to take place.
The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any stocks or products that may be mentioned.
©2021 BMO Global Asset Management. BMO Global Asset Management is a registered trading name for various affiliated entities of BMO Global Asset Management (EMEA) that provide investment management services, institutional client services and securities products. Financial promotions are issued for marketing and information purposes; in the United Kingdom by BMO Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority; in the EU by BMO Asset Management Netherlands B.V., which is regulated by the Dutch Authority for the Financial Markets (AFM); and in Switzerland by BMO Global Asset Management (Swiss) GmbH, acting as representative office of BMO Asset Management Limited. These entities are all wholly owned subsidiaries of Columbia Threadneedle Investments UK International Limited, whose direct parent is Ameriprise Inc., a company incorporated in the United States. They were formerly part of BMO Financial Group and are currently using the "BMO" mark under licence.