Investors have urged governments to significantly raise their climate ambition at COP27, which is set to commence next week in Egypt.
The “most ambitious climate statement to date” has been submitted to governments ahead of COP27, which includes 602 signatories with a total of $42 trillion in assets under management from 33 countries.
The ‘2022 Global Investor Statement to Governments on the Climate Crisis‘ by The Investor Agenda has urged governments to ramp up their policy actions to address the climate crisis and transition to a net zero emissions economy by 2050 or sooner.
“Investors are taking action as it is not only permitted by law but is in many cases required to ensure their ability to generate returns in the long-term as a core fiduciary duty and benefit from the opportunities associated with the shift to a net-zero emissions economy,” the statement mentions.
Additionally, encouraging governments to engage closely with investors helps ensure “these risks are effectively managed and that these opportunities are fully realised”.
The unified statement from investors has recommended governments implement five priority policy actions, including medium and long-term climate strategies, transitioning energy away from fossil fuels, ending deforestation, bolstering climate finance and strengthening disclosures.
Summary of the statement:
- Investors have asked governments to ensure that 2030 targets in their Nationally Determined Contributions align to limit global temperature rise to 1.5ºC;
- Governments must contribute to reducing non-carbon dioxide greenhouse gas emissions and effectively support implementing the Global Methane Pledge;
- Scale up the provision of climate finance from public and private sectors for mitigation, adaptation and resilience, with a particular focus on the needs of developing countries;
- Strengthen climate disclosures across the financial system.
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