Hundreds of investors and financial institutions have urged governments worldwide to create policies to free up private financial flows for the transition to a nature-positive, net-zero economy.
The 2024 Global Investor Statement to governments on the climate crisis was published ahead of Climate Week NYC, where investors are expected to encourage their peers worldwide to support the call for government action. The statement has already been signed by 534 financial institutions and their representatives with more than $29trn in assets under management, and will be presented to governments at the UN Climate Conference (COP29) in Baku, Azerbaijan, later this year.
To reach a net zero emissions economy by 2050 or sooner, the statement calls for governments to enact policies across five critical policy groupings. These include enacting economy-wide public policies; implementing sectoral strategies, especially in high-emitting sectors; addressing nature, water and biodiversity-related challenges contributing to and stemming from the climate crisis; mandating climate-related disclosures across the financial system; and facilitating further private investment into climate mitigation, resilience and adaptation activities in emerging markets and developing economies.
“Investors recognised that policy mechanisms are essential to achieve a climate-resilient, net zero emissions economy by 2050 or sooner, with interim targets in line with credible 1.5°C pathways,” the statement reads.
“Nonpolicy mechanisms, including public-private partnerships, sectoral strategies and other collaborative efforts should also play an important role in decarbonising value chains and building out resilient electricity infrastructure.”
It also highlighted the need for a “renewed focus” to address rising energy demand from end-use sectors such as transportation, industry and buildings, including through energy efficiency.
“We encourage governments to consider other fiscal, financial and regulatory innovations that could reduce the cost of capital and facilitate a just and equitable net-zero transition.”
The statement was coordinated by the founding partners of The Investor Agenda – the Asia Investor Group on Climate Change, the CDP, the Investor Group on Climate Change, the Institutional Investors Group on Climate Change (IIGCC), Principles for Responsible Investment and the UNEP Finance Initiative.
IIGCC CEO and Investor Agenda steering committee member, Stephanie Pfeifer, commented: “This year’s Global Investor Statement – the most ambitious yet – sends a clear message from hundreds of investors to governments around the world for greater policy action to help unlock private capital to support the decarbonisation of the global economy.
“While there are notable examples of supportive policies underpinning government climate commitments, the new Global Investor Statement highlights the need for more comprehensive policies by calling for enhanced action on nature and emerging markets finance. COP16 and COP29 provide the ideal settings for governments to respond to investors’ asks.”
