SAWT BEIRUT INTERNATIONAL

| 26 May 2024, Sunday |

COP26 coalition worth $130 trillion vows to put climate at heart of finance

On Wednesday, banks, insurers, and investors with $130 trillion at their disposal pledged to put combating climate change at the center of their work, and gained support in the form of efforts to put green investing on a more solid footing.

In another development at the United Nations Climate Change Conference, at least 19 countries are expected to commit on Thursday to ending public financing for fossil fuel projects abroad by the end of 2022, according to two sources.

In an earlier announcement at the meeting in Scotland, financial institutions representing roughly 40% of global capital committed to assuming a “fair share” of the effort to wean the world off fossil fuels.

The main goal of the COP26 talks is to secure enough national commitments to reduce greenhouse gas emissions – primarily from coal, oil, and gas – to limit the average global temperature rise to 1.5 degrees Celsius.

However, how to meet those pledges, particularly in the developing world, is still being worked out, and it will require a significant amount of money.

U.N. climate envoy Mark Carney, who convened the Glasgow Financial Alliance for Net Zero (GFANZ), put the figure at $100 trillion over the next three decades, and said the finance industry must find ways to raise private money to go far beyond what states can do alone.

“The money is here, but it requires net zero-aligned projects, and there’s a way to turn this into a very, very powerful virtuous circle – and that’s the challenge,” the former Bank of England governor said at the summit.

The main goal of the COP26 talks is to secure enough national commitments to reduce greenhouse gas emissions – primarily from coal, oil, and gas – to limit the average global temperature rise to 1.5 degrees Celsius.

However, how to meet those pledges, particularly in the developing world, is still being worked out, and it will require a significant amount of money.

The United Nations Climate Change Envoy, Mark Carney, who assembled the Glasgow Financial Alliance for Net Zero (GFANZ), put the figure at $100 trillion over the next three decades, and said the finance industry must find ways to raise private money to take the effort far beyond what states alone can do.

“The money is here, but it requires net zero-aligned projects, and then there’s a way to turn this into a very, very powerful virtuous circle – and that’s the challenge,” the former Bank of England governor said at the summit.

Carney’s remarks reflect a problem frequently raised by investors who, in the face of a plethora of climate-related risks, want to know that they are being accounted for in a transparent and preferably standardized manner around the world.

“Some of the key interlocking pieces of the finance puzzle are now coming together,” Grantham Research Institute on Climate Change and the Environment’s Nick Robins said.

    Source:
  • Reuters