Valerie Volcovici and Jake Spring

GLASGOW, (Reuters) – A surprising deal was struck between China and America, two of the largest emitters of greenhouse gases in the world. The summit is now entering two days worth of hard bargaining to prevent global warming from becoming catastrophic.

Alok Sharma, the British conference president, stated that although some progress had been made, he still believes that we are far from being there.

He called for greater effort in “climate financing” — the perpetually controversial question about how much should the wealthy countries that have caused the most global warming pay those who are most affected by its effects.

The developing nations demand stricter rules starting 2025, as rich countries have failed to honor their pledge in 2009 to contribute $100 billion annually to climate finance until 2020. They want to cut emissions and deal with the impacts of rising temperatures. The sum, according to campaigners, is still inadequate.

On Wednesday, the first draft was published. This only urges developed countries to increase aid to poorer nations in response to climate change. The request for funding is through grants, not loans.

China is the largest producer of greenhouse gasses in the world and has begun to accept more responsibility. This has been a result of an economic growth that was unimaginable over the past two decades.

John Kerry, U.S. climate envoy, and Xie Zhanghua, China’s counterpart in China, released a joint declaration on Wednesday that stated China as the world’s largest coal producer and consumer and promised to help it transition away from fossil fuels.

MESSAGE

Two global power deals, previously divided over many other issues sent a strong message to COP26. This included the representatives of fossil fuels, the primary cause of global warming.

Although there were not enough numbers to show it, the leaders claimed that it was a powerful signal for other countries and might persuade others to make more efforts to achieve agreement at the summit.

Boris Johnson, British Prime Minister said that this was a “boost to negotiations” as he entered the last days of COP26. He also stated that he would continue to work to achieve an ambitious result for the planet.

Kerry said at a conference, “Together, we have set out our support of a successful COP26. This includes certain elements that will encourage ambition.”

China hosts half the world’s remaining coal-fired plants. The joint declaration announced that China will reduce its consumption of coal from 2026-30, as well as its methane and greenhouse gases emissions.

Observers were concerned before the Chinese President Xi Jinping’s absence from the Glasgow talks. Beijing hadn’t made any significant new promises.

China had failed to address its methane emission, which is largely linked to its extensive coal industry in its climate plan.

Although the United States set an ambitious goal of decarbonizing its economy by 2050 (although President Joe Biden is struggling to get crucial legislation through Congress),

Frans Timmermans (EU climate policy chief) said to Reuters that “it’s encouraging to see that countries that were at odds on so many aspects have found common ground over what is the largest challenge humanity faces right now.”

He said that negotiators are moving towards a deal to tax global carbon markets in order to finance climate adaptation in the poorest countries.

While poor countries believe that a tax on carbon market would be a critical source of support, rich nations (including EU members) are worried about its costs.

A carbon market is also a target for them. Experts estimate that it could generate around $170 Billion per year in 2030. The money will go towards adaptation to increasing floods, droughts, and rising sea levels.

“TIME IS RUNNING OUT”

Negotiations are expected to become fierce over the last days. Pope Francis issued a warning to Scotland’s Catholics by writing: “Time is running short.”

Britain hosts the conference. The goal of the conference is to “keep alive” hope of keeping global temperatures below 1.5 degrees Celsius (2.7 Fahrenheit). However, this target remains well beyond reach given current national emissions reduction pledges.

In 2015, the landmark Paris Agreement legal bound all its signatories to maintain the increase “well below” 2.0 degrees Celsius (3.6 Fahrenheit), and “pursue efforts to keep it below 1.5C.”

The scientific evidence suggests that the crossing of 1.5C would result in much worse sea level rises or floods as well as droughts, wildfires, storms, and other irreversible effects.

Climate Action Tracker, an international research organization, stated on Tuesday that all the national pledges to curb greenhouse gases in 2030 were likely to be fulfilled and allow for an Earth temperature rise of 2.4C by 20100.

Wednesday’s draft of the final deal implicitly admitted that pledges made to cut greenhouse gas emissions in 2030 weren’t enough to prevent climate disaster. The agreement asked countries to “revisit, strengthen” their targets for 2019.

This was a new request at a U.N. conference on climate change. It called for massive state subsidies to oil, coal, or gas industries to be eliminated.