Asset managers representing $42trn have joined forces to lobby governments for “ambitious” actions at COP27 next week, calling for a deadline to phase out fossil fuel subsidies and increased scrutiny around climate transition plan disclosures.
The 602 investment groups have signed the Global Investor Statement to Governments on the Climate Crisis, coordinated by networks that form the Investor Agenda*, which has been submitted to governments before they meet in Sharm el-Sheikh from 7 November for the 27th United Nations climate conference.
The statement outlines five priority actions governments need to take to scale up private capital flows into climate solutions and limit global warming to no more than 1.5°C. The Investor Agenda said this is the 13th and “most ambitious” statement to date from investors in 33 countries around the world.
A summary of the five priority actions is as follows:
- Ensure that the 2030 targets in their nationally determined contributions align with the goal of limiting global temperature rise to 1.5°C.
- Take early action to ensure these targets are met by implementing domestic policies across the real economy, including carbon pricing mechanisms, a deadline to phase out subsidies for fossil fuels and thermal coal power, and targets to peak and then phase out the use of other fossil fuels, while developing transparent just transition plans and guaranteeing long-term resilience and energy security.
- Contribute to the reduction in non-carbon dioxide greenhouse gas emissions and support the effective implementation of the Global Methane Pledge to reduce emissions by at least 30 percent from 2020 levels by 2030.
- Enable climate finance from the public and the private sector for mitigation, and for adaptation and resilience, with a particular focus on the needs of developing countries.
- Strengthen climate disclosures across the financial system, including transition plans.
The full statement and list of signatories can be found here.
*The seven founding partners of the Investor Agenda are: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC), Principles for Responsible Investment (PRI) and United Nations Environment Programme Finance Initiative (UNEP FI).
