Worlds Leading Institutional Investors Managing $24 Trillion Call for Carbon Pricing, Ambitious Global Climate Deal
Targeted News Service |
Days before UN Secretary-General
"Gaps, weaknesses and delays in climate change and clean energy policies will increase the risks to our investments as a result of the physical impacts of climate change, and will increase the likelihood that more radical policy measures will be required to reduce greenhouse gas emissions," said the statement - the largest of its kind by global investors on climate change. "Stronger political leadership and more ambitious policies are needed in order for us to scale up our investments."
According to the
The statement recognizes the role investors play in financing clean energy, outlines the specific steps they are committing to take, and calls on policymakers to take action that supports, rather than limits, investments in clean energy and climate solutions. It was coordinated by the four investor groups on climate change - Ceres' Investor Network on Climate Risk (INCR) in
"The perception prevails that we need to choose between economic well-being or climate stability. The truth is that we need both. What is needed is an unprecedented re-channelling of investment from todays economy into the low-carbon economy of tomorrow. Investors are owners of large segments of the global economy as well as custodians of citizens' savings around the world. Having such a critical mass of them demand a transition to the low-carbon and green economy is exactly the signal Governments need in order to move to ambitious action quickly," said
"It is significant that the largest institutional investors from around the world are in agreement that unmitigated climate change puts their investments at risk," said Mindy Lubber, director of
"
Alongside the statement, the investor groups have published a report detailing examples of action being taken by investors that support a low carbon, climate resilient economy. While ambitious policy is required in order for low carbon investments to be brought to scale, these examples demonstrate that investors are already acting on climate change in a variety of ways. These activities include direct low carbon investments, the creation of low carbon funds, company engagement, and reducing exposure to fossil fuel and carbon intensive companies.
"Stronger carbon and climate frameworks are needed to catalyze institutional investment," said
Examples in the report from both developed and developing countries include:
* Danish pension fund PKA looking to increase its new and existing offshore wind farm investments to -1.5 billion by the end of 2015.
* U.S. insurer and pension fund provider TIAA-CREFF reduces the carbon footprint of its real estate portfolio by 17 percent, cutting 58,000 metric tons of greenhouse gas emissions.
* Swedish pension fund AP4 is committed to decarbonizing its entire
* China Utility-Based Energy Efficiency Finance Program provides loans worth
*
*
* HSBC Armenia partners with IFC to finance nine small-medium size enterprise energy efficiency projects in
* Global bank
In addition, the investor groups have launched a public online database of select low carbon investments made by asset owners such as pension funds and insurance companies. The Low Carbon Investment Registry identifies how institutional investors are directing capital towards low carbon assets. Asset owners around the world will be encouraged to add examples to the Registry leading up to the climate negotiations in
"The Low Carbon Investment Registry shows how investors are already supporting the transition to a low carbon economy by investing in a variety of different ways - directly into renewable energy projects, into clean energy funds, through green bonds and through the establishment of public-private-partnerships," said
Several signatories to the Global Investor Statement on Climate Change are expected to announce significant new individual commitments related to climate risk and low carbon investment at the UN Summit on Climate Change on
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