It’s not just individuals who want to see action on climate change, and it’s not just politicians negotiating their own best terms for a global treaty – investors with around $13 trillion under management want action. The group called a press conference to state what they think we need to see in a new climate agreement.
In a capitalist society, pretty much nothing is going to get done unless someone, somewhere, sees the benefit. Environmentalists, and some economists, have been arguing for years that we need to value the benefit of clean air and water in our framework of existence. Unfortunately, since these groups rarely have the kind of money necessary to effectively lobby government, buy media space or do any of those things that help get a message across, their message has remained, to an extent, preaching to the choir.
Yet a cultural shift seems to be taking place where people are actually developing a sense of responsibility to the world around them. It’s a slow process but when the investment community takes a stand, things can really change. After all, companies need to please investors if they’re going to get their money. New York State Comptroller Thomas DiNapoli, who heads the $116.5 billion New York State Common Retirement Fund and its $500 million green strategic investment programme said, "We cannot drag our feet on the issue of global climate change. I am deeply concerned about the investor risks climate change presents, and the human cost of inaction is unthinkable."
Investment managers, pension funds and other institutional investors (181 of them) have outlined what they think they need to effectively create a low carbon economy. They want to see such an agreement because, if their investments in the low-carbon agenda are to suceed, they need the right climate policies in place.
That means:
In a capitalist society, pretty much nothing is going to get done unless someone, somewhere, sees the benefit. Environmentalists, and some economists, have been arguing for years that we need to value the benefit of clean air and water in our framework of existence. Unfortunately, since these groups rarely have the kind of money necessary to effectively lobby government, buy media space or do any of those things that help get a message across, their message has remained, to an extent, preaching to the choir.
Yet a cultural shift seems to be taking place where people are actually developing a sense of responsibility to the world around them. It’s a slow process but when the investment community takes a stand, things can really change. After all, companies need to please investors if they’re going to get their money. New York State Comptroller Thomas DiNapoli, who heads the $116.5 billion New York State Common Retirement Fund and its $500 million green strategic investment programme said, "We cannot drag our feet on the issue of global climate change. I am deeply concerned about the investor risks climate change presents, and the human cost of inaction is unthinkable."
Investment managers, pension funds and other institutional investors (181 of them) have outlined what they think they need to effectively create a low carbon economy. They want to see such an agreement because, if their investments in the low-carbon agenda are to suceed, they need the right climate policies in place.
That means:
- A global target for emission reductions of 50-85% by 2050
- Developed country emission reductions targets of 80-95% by 2050 withinterim targets of 25-40% backed up by effective national action plans
- Developing country action plans that deliver measurable and verifiable emission reductions
- Government support for energy efficiency and low-carbon technologies
- Measures that support the move to an effective global carbon market, including ambitious caps, fair and efficient allocation of allowances and links between different trading schemes
- Revisions to the Clean Development Mechanism to ensure real, permanentand verifiable emission reductions
- Public financing mechanisms that leverage private sector finance for investment in developing countries
- Measures to reduce deforestation and promote afforestation
- Support for adaptation to unavoidable climate change impacts
Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk pointed out something really obvious. She said "The problem is too big for any one country. We need clear market signals. If there is a cost of carbon emissions, a cap on carbon, we will have flow of capital. Investors see these opportunities."
Now all we need is for more of them to pay attention.
Now all we need is for more of them to pay attention.
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