A total of 587 investors representing over USD 46trn in assets have signed a statement calling on governments around the world to raise ambition and accelerate action to tackle the climate crisis.

As reported by our sister publication, European Pensions, Signatories to the 2021 Global Investor Statement to Governments on the Climate Crisis include scores of pension funds from across Europe.

In the build up to COP26, investors have urged governments to enable them to “properly allocate” the trillions of dollars needed to support the net-zero transition by making a series of changes.

The signatories urged governments to strengthen their nationally determined contributions for 2030 before COP26, to align with limiting warming to 1.5-degrees Celsius and ensure a planned transition to net-zero emissions by 2050 or sooner.

Governments were also encouraged to commit to a domestic, mid-century, net-zero emissions target and outline a pathway with ambitious interim targets including clear decarbonisation roadmaps for each carbon-intensive sector

The investors urged governments to implement domestic policies to deliver these targets, incentivise private investments in zero-emissions solutions and ensure ambitious pre-2030 action through robust carbon pricing, the removal of fossil fuel subsidies by set deadlines, the phase out of thermal coal-based electricity generation by set deadlines in line with credible 1.5-degrees Celsius temperature pathways, the avoidance of new carbon-intensive infrastructure and the development of just transition plans for affected workers and communities.

Additionally, the signatories called for Covid-19 economic recovery plans to support the transition to net-zero emissions and enhance resilience.

This includes facilitating investment in zero-emissions energy and transport infrastructure, avoiding public investment in new carbon-intensive infrastructure and requiring carbon-intensive companies that receive government support to enact climate change transition plans consistent with the Paris Agreement.

Finally, the investors urged governments to commit to implementing mandatory climate risk disclosure requirements aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, ensuring comprehensive disclosures that are consistent, comparable, and decision-useful.

“Strong policies, in line with limiting global warming to no more than 1.5-degrees Celsius, can accelerate and scale up private capital flows towards the net-zero transition,” said the statement.

“Full implementation of the Paris Agreement will create significant investment opportunities in clean technologies, green infrastructure and other assets, products and services needed in this new economy.

“In turn, investors can use capital allocation and stewardship to support sustainable activities that generate jobs and economic growth, transition away from carbon-intensive activities and increase resilience.

“We encourage governments to engage closely with investors to make sure these opportunities are fully realised. As investors, we are committed to working with governments to ensure policy mechanisms are developed and implemented to transition to a climate resilient net-zero emissions economy by 2050 or sooner.

“We urge all governments to step up their collective response to the climate crisis.”

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