In the most comprehensive statement to date, investors and financial institutions are urging governments worldwide to enact the critical policies needed to free up private financial flows for the just transition to a climate-resilient, nature-positive, net-zero economy.
The 2024 Global Investor Statement to Governments on the Climate Crisis, publicly launched last week, comes ahead of Climate Week NYC where investors will encourage their peers worldwide to support the global call for government action.
The statement has already been signed by 534 financial institutions and their representatives, with more than USD$29 trillion in assets under management. The statement will remain open until 1st November, ahead of the UN Climate Conference (COP29) in Baku, Azerbaijan, where it will be presented to governments with the final list of signatures.
Statement signatories are encouraging a whole-of-government approach to achieve a climate-resilient, net zero emissions economy by 2050 or sooner.
Pratima Divgi, CDP Head of Capital Markets, North America, said, “We are fast approaching critical milestones on the journey to a net-zero, nature positive economy by 2050. The 2024 Global Investor Statement unites hundreds of investors on the essential policies needed to mobilise capital towards a climate positive future. It is invigorating to see this regionally diverse community of investors and financial institutions come together to urge action and we hope that governments around the world hear these voices.”
To reach the goal, the statement calls for governments to enact policies across five critical policy groupings:
- Enacting economy-wide public policies
- Implementing sectoral strategies, especially in high-emitting sectors
- Addressing nature, water and biodiversity-related challenges contributing to and stemming from the climate crisis
- Mandating climate-related disclosures across the financial system
- Facilitating further private investment into climate mitigation, resilience and adaptation activities in emerging markets and developing economies
The statement reads, “Investors recognise that policy mechanisms are essential to achieve a climate-resilient, net zero emissions economy by 2050 or sooner, with interim targets in line with credible 1.5°C pathways. Nonpolicy mechanisms, including public-private partnerships, sectoral strategies, and other collaborative efforts, should also play an important role in decarbonising value chains and building out resilient electricity infrastructure.
“Renewed focus is needed to address rising energy demand from end-use sectors such as transportation, industry and buildings, including through energy efficiency. We encourage governments to consider other fiscal, financial and regulatory innovations that could reduce the cost of capital and facilitate a just and equitable net zero transition.”
Coordinated by the Founding Partners of the Investor Agenda – Asia Investor Group on Climate Change, CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change, Principles for Responsible Investment, and UNEP Finance Initiative – the global investor statement calls on governments to increase the ambition of their updated Nationally Determined Contributions (NDCs) due to be submitted next year. The Founding Partners have coordinated global investor calls to action urging governments to step up climate policy action since 2009.
Rebecca Mikula-Wright, from Asia Investor Group on Climate Change (AIGCC), said, “With just five years to go before the critical 2030 milestone, this group of leading investors is making it clear to governments that the right set of strong policies will unleash a wave of capital to fund the climate solutions that the global economy desperately needs.
“At COP29 policymakers will be deciding whether to accelerate the global shift to a climate resilient net zero economy or stay on the current trajectory of high-costs and lower economic growth. They pay attention to capital markets so now is the time for investors to join this call for the policies that will protect their economies.”
Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change (IIGCC), said, “This year’s Global Investor Statement – the most ambitious yet – sends a clear message from hundreds of investors to governments around the world for greater policy action to help unlock private capital to support the decarbonisation of the global economy. While there are notable examples of supportive policies underpinning government climate commitments, the new Global Investor Statement highlights the need for more comprehensive policies by calling for enhanced action on nature and emerging markets finance. COP16 and COP29 provide the ideal settings for governments to respond to investors’ asks.”
Investors have until 1 November 2024 to sign on to the statement.