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>>>Letter from global investors to governments of the G7 and G20 nations

Letter from global investors to governments of the G7 and G20 nations

08/05/2017

LETTER FROM GLOBAL INVESTORS TO GOVERNMENTS OF THE G7 AND G20
NATIONS

This letter is signed by 282 investors representing more than USD $17 trillion in assets.

As long-term institutional investors, we believe that the mitigation of climate change is essential for the safeguarding of our investments.

We have previously conveyed our strong support for the Paris Agreement [link] and we reiterate our call for governments to continue to support and fully implement the Agreement.


We urge all nations to stand by their commitments to the Agreement and to put in place policy
measures to achieve their nationally-determined contributions (NDCs) with the utmost urgency. In addition, we ask governments to develop focused and targeted long-term climate plans by which their NDCs become aligned with the Paris Agreement’s goal of “holding the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels.”


The implementation of effective climate policy mechanisms and the regular monitoring of outcomes is vital for investors to make well-informed investment decisions that can also better support governments in delivering their national commitments and priorities.


To this end, we welcome the inclusion of climate change and the advancement of sustainable energy supply and energy efficiency as priority areas for the 2017 G20 Summit under the German Presidency. We also welcome the G20’s goal to foster “a secure, economically efficient and greenhouse gas-neutral energy supply accessible to everyone”.


However, we are concerned that reference to climate change, climate finance and climate adaptation were omitted from the G20 Finance Ministers Communiqué in March 2017. We urge government leaders to ensure that climate change is explicitly acknowledged at the G20 Leaders Summit on 7-8th July. Investors believe it is vital that the governments of G7 and G20 nations continue to publicly express their commitment to support climate finance to both mitigate and adapt to the effects of climate change.


It is imperative that the public and private sectors work closely together to get the signalling and incentives right to shift the trillions of capital required across the global economy.
This includes creating the policy frameworks to support investment in low carbon assets now and into the future, to evolve the financial frameworks required to improve the availability, reliability and comparability of climate-related information, and to ensure the utilisation of tools and metrics that effectively incorporate the risks and opportunities into financial assessments.

Investors are willing and ready to work with governments to facilitate the changes that are needed to improve the pricing of climate-related financial impacts, and to mobilise the capital flows that are required to underpin a strong and resilient financial system.

With that in mind, we call on global leaders to:


• Continue to support and implement the Paris Agreement, including the implementation of NDCs and 2050 climate plans to achieve the goals of that agreement.
• Drive investment into the low carbon transition through aligning climate-related policies, phasing out fossil fuel subsidies and including carbon pricing where appropriate.
• Implement climate-related financial reporting frameworks, including supporting the Financial Stability Board Task Force on Climate-related Financial Disclosures recommendations.


We provide further detail on each of these three areas for action in the companion briefing paper entitled “Governments urged to maintain momentum on climate change action”.


Sincerely,

The 282 signatories *

 

* Full text, sources and list of 282 signatories available here