The latest COPs – COP 15 on Biodiversity and COP 26 on Climate- are behind us. What has been the impact on the sovereign bond market, and on the ability of OECD member states to repay their debt rather than increase it without limit?
COP 15 on biodiversity intensified the growing focus on the issue of biodiversity loss and extinction of plant and animal species. The statement is clear: A country that does not care about its natural capital in the medium and long term is not a sustainable country.
COP 26 put the focus on several key issues, including the review of countries’ NDCs and higher ambitions for most OECD members towards a general commitment to carbon neutrality by 2050-2060. As of today the countries commitments to reduce their greenhouse gas emissions are not aligned with the objectives of the Paris agreement. If we want to keep the increase of the global temperature of the planet below 2°, we need these commitments to be upgraded and respected. Without binding power, the revision of the NDCs will be based primarily on the ambitious pledges of developed countries, while climate change does not stop at borders and should be an international issue.Additionally, the various problems of supply of equipment, materials and medicines that occurred during the health crisis tend to lead countries to return to a certain sovereignty in terms of health policy.
In this specific context, how did the OECD member states perform in our sustainability ranking?
