The world’s largest investor groups on climate change published an open letter to governments of the world’s largest economies calling for a new dialog on climate change policy. The letter calls for:
- Clear, consistent, and predictable policies that encourage low carbon investment;
- Knowledge sharing between governments on effective climate and clean energy policies;
- Stronger international agreements that send clear market signals about the future of climate policy and reductions in greenhouse gas emissions
The investor groups also outline key features of successful climate change and clean energy policy which attract low-carbon investment. These include:
- Clear short term, medium term, and long-term greenhouse gas emission reduction targets;
- Timetables for these targets, alongside enforceable legal mechanisms;
- Incentives to shift the risk/reward balance away from high-carbon in favor of low-carbon investment
According to recent reports, current policies and trends will lead to long-term average global temperature increase of 3.6°C, with possible disastrous consequences. The re-election of US President Obama, the leadership transition in China, and the upcoming UN climate change conference gathering in Doha, provide the right timing for pushing new changes to avert this disastrous scenario.
Nathan Fabian, CEO of the IGCC, one of the letter's investor groups, said: “Investors are ready to allocate more funds to low carbon solutions, which can support the economic development objectives of nations. Realising the level of investment needed to avoid the worst impacts of climate change requires that investors and governments work together. Now is the time for investors and governments to step up their dialog on reducing climate risk and supporting low carbon investment.”