By Nick Hedley
Ahead of the COP27 climate summit, a group of 602 investors with a combined US$42 trillion in assets under management has called on governments to accelerate the transition to a net-zero emissions economy. COP27 starts Sunday in Sharm El-Sheikh, Egypt and continues through November 18.
The Investor Agenda, which includes the likes of AustralianSuper and the New Zealand Superannuation Fund, say “effective policies” are needed to scale up private capital flows and limit warming to safe levels.
The investors, from 33 countries, urged governments to put in place climate strategies, to transition away from fossil fuels, end deforestation, bolster climate finance, and strengthen disclosures.
They said in a statement that governments must ensure that their 2030 targets are aligned with the goal of limiting global temperature rise to 1.5°C, and should take early action by implementing domestic policies, including deadlines to phase out fossil fuel subsidies.
There is also a need to scale up climate finance, “with a particular focus on the needs of developing countries.”
“To help advance the climate transition, investors are also encouraged to develop and implement comprehensive investor climate action plans and align their investments with the goal of net-zero emissions by 2050 or sooner, with credible interim targets, among other actions,” the group said.