Despite three years of disappointing results, Jean-Philippe Desmartin at Paris-based Edmond de Rothschild Asset Management, is more optimistic about the outcome of the 30th United Nations Climate Change Conference (COP30) to be held in Belém, Brazil.

Although Jean-Philippe Desmartin (pictured), head of responsible investment at Edmond de Rothschild Asset Management, was disappointed about the outcome of COP29, he is slightly more optimistic about the COP30 to be held in Belém, Brazil from November 10 to 21.

The city’s candidacy was announced by Brazilian president Lula da Silva at the COP27 in Eygpt. COP30 will focus on the efforts needed to limit the global temperature increase to 1.5°C, the presentation of new national action plans on emissions, called nationally determined contributions (NDCs) under the Paris agreement, and progress on the finance pledges made at COP29. The Paris agreement, designed to limit global temperature rises to 1.5°C and to keep them well below 2°C, lays the groundwork for the planned UN-backed carbon market.

In an interview in Paris this month, Desmartin told this news service that Brazil, China and India are ambitious about fighting climate change and are playing a strong role in the global transition to clean energy.

Brazil has one of the world’s cleanest energy mixes with 89 per cent of its electricity coming from renewables, primarily hydropower, supported by a growing wind and solar sector. While China still relies on fossil fuels, it produces more than 80 per cent of all solar photovoltaic panels, half of the world’s leading electric vehicles and a third of its wind power. “The country also wants to continue reducing its fossil fuel consumption and doesn’t have much oil,” Desmartin said.

Although there has been a 50 per cent increase in tariffs on Indian exports to the US, due to its continued purchases of Russian oil and high import barriers, India has developed its renewable energy capacity considerably, Desmartin continued, driven by significant growth in solar and wind power.

Parts of Europe such as Italy, Spain and Portugal also have a lot of renewable energy capacity, Desmartin said, with Portugal and Spain leading the way with wind and solar power forming a big part of their electricity mix. Meanwhile, France is committed to nuclear power, Desmartin added, with about 70 per cent of its electricity derived from nuclear energy. On the other hand, the UK is doing more work on offshore wind, with renewables providing the majority of the nation’s electricity.

However, US President Donald Trump has pulled out of the global Paris climate agreement, Desmartin continued, and is dismantling climate policies in the US, although some states – California for instance – are still aiming to use renewable energy; 66 per cent of of California's power came for renewables in 2023. Saudi Arabia, which is reliant on fossil fuels, also wants to slow progress at COP30, he added.

In addition, Desmartin thinks the "climate" and "biodiversity" COPs should be merged under the same banner, saying that the interdependent element of the climate and nature crises exacerbates this need.

Sustainable finance at Edmond de Rothschild AM
Desmartin emphasised Edmond de Rothschild AM's commitment to sustainable finance, and its strong focus on research and sustainability. Despite the ESG backlash, Desmartin said there has been no decline in demand from their clients in wanting to invest in ESG-focused funds. “All of our funds are minimum Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR) and some are covered by Article 9,” he said. The SFDR is meanwhile up for review and Desmartin is expecting results next year which he hopes will produce clearer rules.  

Last year, Edmond de Rothschild AM announced that €26 billion ($28 billion) of its assets under management – or 47.5 per cent of in-scope assets – would be managed in line with attaining net zero emissions by 2050, underscoring the firm’s commitment to addressing the global challenges caused by climate change.  

The firm also recently launched a climate-focused emerging market bond fund to tackle global warming. The Edmond de Rothschild Fund EM Climate Bonds, which is classified under Article 9 of the EU’s Sustainable Finance Regulation (SFDR), invests primarily in green bonds in emerging markets. See here and here.