Tuesday, October 20, 2015

Investors Urge World Leaders to Join Them - Now! - on Path to Low-Carbon Economy

Mindy Lubber, President of Ceres (Credit: Ceres) Click to Enlarge.
From all corners of the world, we can hear sounds of applause at news that world leaders have agreed on a climate finance package. To be clear, it wasn't a congratulatory standing ovation at the finish line; it was the encouraging and excited applause that comes at the beginning of a long race.

Investors need supportive partners, strong political leadership and more ambitious policies in the journey toward a global low-carbon, climate-resilient economy.

New climate finance pledges were made at the annual World Bank and International Monetary Fund (IMF) conference in Lima, Peru. Acknowledging that the low-carbon journey will require $100 billion a year by 2020 to support the transition and help developing countries adapt to climate change, international investors in Lima - from the World Bank and the European Investment Bank to government ministers - pledged an extra $15 billion a year, which will be key to meet the £100 billion target.

With less than 50 days to go before these same world leaders meet again in Paris for the United Nations Climate Change Conference (COP21), the IMF agreement was an important signal that urgent action - not empty talk - must be the end-goal of these gatherings.

In this regard, investors are ahead of the game.  While politicians debate, investors move. Across all market sectors, they have witnessed the unbearable consequences and material risks that climate change is causing to communities, people and businesses.  They are aware that inaction carries a heavy cost - and that waiting one second longer to take bold climate action is not an option.

Last month a group of 400 global institutional investors representing $24 trillion in assets and speaking in a unified voice called on governments to show strong political will and develop an ambitious global climate deal in Paris.  A commitment by world leaders to a bold and clear long-term goal will enable investors to deploy more capital and unleash a wave of innovation.

Read more at Investors Urge World Leaders to Join Them - Now! - on Path to Low-Carbon Economy

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