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Thursday, December 2, 2021

The financial alliance led by Carney has up to 130 trillion US dollars in funding and is committed to achieving net zero

The International Finance Corporation Alliance, led by Mark Carney, has signed an agreement to address climate change. The alliance has private capital of up to 130 trillion U.S. dollars and promises to achieve net zero emissions by 2050.

The Glasgow Net-Zero Finance Alliance (Gfanz), composed of more than 450 banks, insurance companies and asset management companies in 45 countries/regions, said it can provide up to $100 trillion in financing to help economies transition to Net zero for three decades.

Carney, the former governor of the Bank of England, who served as chairman of Gfanz, said: “We now have the necessary pipelines to move climate change from the fringe of finance to the forefront of finance so that climate change is taken into account in every financial decision.” Since April Since its launch.

Investment managers accounted for 57 trillion U.S. dollars of assets, of which 63 trillion U.S. dollars came from banks and 10 trillion U.S. dollars came from asset owners such as pension funds. Financial groups that have signed contracts with Gfanz include HSBC, Bank of America and Santander.

However, the total capital figure proposed by Gfanz has raised suspicions among some climate activists tracking the financial services industry.The climate promise “one mile wide and one inch deep”, Becky Jarvis, climate change strategist Believe in our future Said the campaign network.

She said that so far, the asset management company that has signed with Gfanz has only aligned 35% of its total assets with the net zero target. She added: “As long as financiers have a lot of interest in fossil fuel expansion, it is not green finance, nor is it fully committed to combating climate change.”

Mark Campanale, founder of the Carbon Tracker Initiative, a financial think tank and member of the Gfanz advisory board, stated that the $13 billion in assets “does not match today’s net zero” but “ambition” [was] So that the assets remain consistent in the future”.

He added that no group involved in the expansion of fossil fuel projects can claim that it is moving towards net zero.

Gfanz has been criticized by climate activists for allowing financial conglomerates to continue to support fossil fuel companies in the short term.

“This statement again ignores the biggest elephant in the room,” said Richard Brooks, Stand.earth’s climate finance director. “In this new statement from the Net Zero Club, the F is not mentioned at all. We cannot keep it below 1.5 degrees [warming] If financial institutions do not stop providing funds for coal, oil and gas companies. “

Last month, the “Financial Times” revealed that the banks that signed the Gfanz agreement opposed the clearest roadmap proposed by the International Energy Agency to reduce greenhouse gas emissions, which required them to stop financing all new oil, natural gas, and coal. This year’s exploration projects.

Carney called on financial institutions to commit to phasing out coal financing and addressing the “impact of the International Energy Agency’s net-zero analysis”, but this is not mandatory for the signatories of the Gfanz contract.

Also on Wednesday, the British Chancellor of the Exchequer Rishi Sunak reiterated the plan announced in October, requiring British companies to publish a net-zero emission roadmap from 2023, clarifying how they plan to achieve decarbonization by 2050.

A working group composed of industry representatives, academics, regulatory agencies and civil society groups will be established to develop a “gold standard.”

Gefans also said on Wednesday that former New York Mayor Michael Bloomberg will join Carney as co-chairman. The team will report its work to the G20 Financial Stability Board on a regular basis. Mary Shapiro, former chairman of the US Securities and Exchange Commission, became vice chairman.

Bloomberg and Shapiro have participated in another Carney initiative, a working group aimed at establishing a voluntary system for climate change financial disclosure (TCFD).

At the same time, the International Financial Reporting Standards Foundation, a global accounting organization, established the International Sustainable Development Standards Committee to establish a globally consistent climate disclosure standard for financial markets.

Climate capital

Where climate change meets business, markets, and politics. Explore the British “Financial Times” report here.

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