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Investors issue warning for governments to ‘get climate policy right’

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Over 400 investors have banded together to urge all world governments to “get climate policy right”, warning that trillions of dollars in investment will be jeopardised if they drag their feet.

Exactly 457 investors managing more than US$41 trillion in assets have released the joint “2021 global investor statement to governments on the climate crisis”, calling for climate-related financial reporting to not only be improved, but also mandatory.

“We believe that those who set ambitious targets in line with achieving net-zero emissions, and implement consistent national climate policies in the short-to-medium term, will become increasingly attractive investment destinations,” the statement, developed by the seven founding partners of The Investor Agenda, read.

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“Full implementation of the Paris Agreement will create significant investment opportunities in clean technologies, green infrastructure and other assets, products and services needed in this new economy.” 

The statement outlines five “priority actions” for governments to undertake prior to the United Nations Climate Conference of the Parties (COP26) this November, including:

  1. Strengthen their nationally determined contributions (NDCs) for 2030 in line with limiting warming to 1.5 degrees Celsius.
  2. Commit to a domestic mid-century, net-zero emissions target and outline a pathway with ambitious interim targets including clear decarbonisation road maps for each carbon-intensive sector.
  3. Implement domestic policies to deliver these targets, incentivise private investments in zero-emissions solutions and ensure ambitious pre-2030 action.
  4. Ensure COVID-19 economic recovery plans support the transition to net-zero emissions and enhance resilience.
  5. Commit to implementing mandatory climate risk disclosure requirements aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

The statement will remain open for more investors to sign until COP26.

Investors issue warning for governments to ‘get climate policy right’

Over 400 investors have banded together to urge all world governments to “get climate policy right”, warning that trillions of dollars in investment will be jeopardised if they drag their feet.

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Neil Griffiths

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily. 

Neil is also the host of the ifa show podcast.

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