Global financial sector pledges to fight climate change – The Ticker
The 26the The annual United Nations Climate Change Conference took place from October 31 to November 12 in Glasgow, Scotland.
Nations came together to discuss the growing threat of climate change, its long-term effects and possible solutions.
This time around, the global financial industry discussed steps it can take to reduce the spread of climate change. United Nations Financial Alliance in Glasgow for Net Zero is a group made up of 450 banks, insurers and asset managers in 45 countries. These include large, leading financial firms such as BlackRock Inc., HSBC Holdings plc, Morgan Stanley and Deutsche Bank AG.
This group was organized with the goal of achieving zero net carbon emissions by the end of this century. The measures that the group has planned to take to achieve this goal are to raise funds and distribute them among different initiatives that address the implementation of renewable energies, electrification, efficiency, coal, nuclear and d ‘other innovations through safe and climate-friendly processes. Since November 3, the group has committed to using its assets, valued at $ 130 trillion, to implement and achieve the goal of zero net emissions.
To tackle climate change and tackle it to the best of its ability, the global financial sector needs the collaboration of governments around the world. As long as regulations prohibiting the practices of companies that use large amounts of carbon emissions are not implemented, emissions will undoubtedly continue. With global government cohesion, the economic systems shaped around the world can adapt and align with climate goals. This calls for a transformation of the economic systems currently being implemented, but promises a cleaner and more secure future for the whole planet.
Marc Carney, former Governor of the Bank of England, led the discussion on the source and distribution of funds. Carney stressed the importance of transforming the financial system to align with climate goals. As discussed in Paris Agreement, Analysts estimated that around $ 150 trillion needed to be raised to meet the 1.5 degree Celsius target that countries around the world had pledged to achieve.
In addition to political regulations, the allocation of trillions of dollars of capital and commitment to change, the Glasgow Financial Alliance for Net Zero has also pledged to report annually on its progress to ensure that measures meaningful and proactive are taken in a consistent manner. With a budget of this magnitude and an initiative taken by the global financial industry, governments are going to have to come together to implement policies to ensure this issue is taken seriously. Since the United Nations group itself is not capable of transforming entire economic systems on its own, the cooperation of global governments is essential.
Overall, significant efforts are being made by several organizations promising fundamental change that will limit climate change and significantly reduce emissions over the next 30 years.