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Influential Investors Call for Action on Growing Climate Risks
By Tyler Collins

A coalition of some of the world’s largest investors, managing nearly $22.5 trillion in assets, is calling for new action on climate policy to mitigate climate change and its resulting economic impacts. In a letter to the governments of the world’s largest economies, announced ahead of international climate negotiations in Doha, Qatar, the investor group has called for:

  • Clear, reliable, and predictable policies that encourage low carbon investment;
  • Increase the effectiveness of carbon markets and create links to broader markets;
  • Stronger international agreements with goals for emissions reductions and rules based frameworks in order to provide investment signals to capital markets.

Under the proper policies, institutional investors will increase investment allocations towards low-carbon markets, citing the growth of renewable energy investment in the United States, India, and Denmark, whom all have financing and supportive policy for renewable energy.

With the recent re-election of President Obama in the United States, the leadership shift in China, and the UN climate change conference in Doha, there is significant opportunity now for investors and governments to collaborate and develop the policies paramount in reducing global emissions.

“Hurricane Sandy, which caused more than $50 billion in economic losses, is typical of what we can expect if no action is taken and warming trends continue,” said Chris Davis, director of investor programs at Ceres, a U.S.-based coalition of investors and environmental groups.

The letter from investors was prepared by the European Institutional Investors Group on Climate Change (IIGCC), the North American Investor Network on Climate Risk (INCR), the Australia/New Zealand Investor Group on Climate Change (IGCC), the Asia Investor Group on Climate Change (AIGCC), and the United Nations Environment Programme Finance Initiative (UNEP FI). It is also supported by the UN-backed Principles for Responsible Investment Initiative (PRI).

Posted: December 5, 2012