Global investors call on governments to raise climate ambitions at COP27

More than 600 investors with almost $42trn in total assets have called on governments to radically raise their climate ambition at COP27.

The 2022 Global Investor Statement to Governments on the Climate Crisis has been submitted to global governments before the 27th United Nations Climate Change conference, to be held from 6 to 18 November 2022 in Sharm El Sheikh, Egypt.

With 602 investor signatures, the statement represents a “unified investor call on governments to implement the policy actions needed to address the climate crisis” and accelerate the transition to a net zero emissions economy, it was announced.

Effective policies in line with limiting global warming to no more than 1.5°C are essential for accelerating and scaling up private capital flows needed for a climate-resilient, net zero transition.

In the 13th and most ambitious to statement to date, investors from 33 countries have urged governments to implement five priority policy actions including: medium and long-term climate strategies; transitioning energy away from fossil fuels; ending deforestation; bolstering climate finance; and strengthening disclosures.

In summary, the statement is asking governments to ensure that 2030 targets in their Nationally Determined Contributions align with the goal of limiting global temperature rise to 1.5°C.

It is also asking for action to ensure these targets are met by implementing domestic policies across the real economy, including carbon pricing mechanisms, a deadline to phase out subsidies for fossil fuels and thermal coal power, and targets to peak and then phase out the use of other fossil fuels, while developing transparent just transition plans and guaranteeing long-term resilience and energy security.

The statement is also calling for governments to contribute to the reduction in non-carbon dioxide greenhouse gas emissions and to support the effective implementation of the Global Methane Pledge to reduce emissions by at least 30% from 2020 levels by 2030.

It is also asking governments to enable climate finance from the public and the private sector for mitigation, adaptation and resilience, with a particular focus on the needs of developing countries.

The statement is also urging governments to strengthen climate disclosures across the financial system, including transition plans.

The statement is coordinated by the seven founding partners of The Investor Agenda – Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC), Principles for Responsible Investment (PRI) and UNEP FI. 

To help advance the climate transition, investors are also encouraged to develop and implement comprehensive Investor Climate Action Plans (ICAPs) and align their investments with the goal of net-zero emissions by 2050 or sooner, with credible interim targets, among other actions.

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