Experts have assessed more than a thousand climate policy instruments in a bid to help investors, lawmakers and companies understand best practice and promote interoperability.

The Taskforce on Net Zero Policy, run by the United Nations’ High Level Expert Group on Net-Zero Emissions Commitments of Non-State Entities, published the analysis at the COP29 climate summit in Azerbaijan today.

The taskforce’s board includes representatives from influential bodies such as the Financial Stability Board, the Network for Greening the Financial System, and the International Sustainability Standards Board.

Helena Viñes Fiestas, who co-chairs the Taskforce, told IPE the report will be of particular help to investors seeking to encourage sovereign bond issuers in G20 countries to incorporate government climate commitments into key national policies.

The Commissioner for Spain’s financial markets authority and chair of the EU’s Platform on Sustainable Finance added that, while corporate lobbying has been effective at influencing sustainability rules around the world for years, investors are lagging.

“The voice of long-term asset owners isn’t being properly heard,” Viñes Fiestas said.

“Pension funds and insurers play an incredible role in the stability of the system, which makes them really important for policymakers. They need to be more vocal about their needs, and rely less on their intermediaries.”

Today’s report found progress on net-zero policy is advancing at pace in many regions, with all G20 countries having some relevant rules for the private sector.

However, it concluded that much stricter and comprehensive laws need to be introduced everywhere in order to ensure the global economy can align with the goal of meeting 1.5°C by 2050.

Recommendations from investor body

Last week, the Global Sustainable Investment Alliance (GSIA) released recommendations for how policymakers – including government representatives negotiating at COP29 – could address that misalignment and “encourage the rapid flow of capital to the projects needed to address climate change”.

It highlighted the need to deal with the over-emphasis on short-term financial returns, the lack of value assigned to environmental and social factors, and too little active ownership among institutional investors.

“The report aims to facilitate more informed conversations among investors and policymakers at COP29 and beyond, providing a foundation for developing comprehensive strategies to align global finance with goals of the Paris Climate Agreement,” GSIA said.

The Taskforce on Net Zero Policy will work with policymakers and other key stakeholders over the next 12 months, to promote net-zero policy ideas, and will report back to the market at COP30.

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