London (Reuters)-The United Nations called on the world’s largest economies on Wednesday to ensure Net Zero’s commitment by science-backed financial institutions and end financing for new fossil fuel projects.
The call is the first time the United Nations Environment Program Finance Initiative (UNEP FI) has provided direct guidance to the G20 on this issue, a few days before negotiations on climate change in Glasgow, Scotland, begin.
UNEP FI, in a G20 report meeting prior to negotiations, asked policy makers to consider the best way to oversee industry efforts to reduce greenhouse gas emissions by the middle of the century. I made a suggestion.
After a groundbreaking report from the United Nations Climate Panel in August, which published the Code Red for Humanity, there are concerns that some of the current pledges are too weak, and countries are calling to reduce emissions. Encourages quicker action.
“In the last two years, NetZero’s commitment has grown surprisingly explosively,” UN EPFI investment leader Jessica Andrews told Reuters.
“This is really the first time we have made a state-of-the-art assessment and made really specific recommendations on how financial institutions specifically set credible Net Zero goals.”
Against this background, UNEP FI said financial institutions need to be consistent with science-based scenarios and remain transparent about which scenarios were used.
“The difficulty is how to define the science, which is the purpose of this paper. It shows how the science should be applied to ensure that the commitment is credible. “I will,” said Andrews.
“If policymakers want to put this off and see more comparability, this is what we have to ask financial institutions,” she added.
Once the scenario was set, companies needed to begin adjusting their loans as soon as possible in order to achieve the global goal of limiting global warming below 1.5 degrees Celsius.
“This includes, for example, the immediate suspension of investment in new fossil fuels and the rapid decommissioning of the remaining fossil fuel production shown in the scenario,” the report said.
Financial institutions should also ideally set goals for five years, report progress annually, and apply appropriate channels to the underlying enterprise to take action on NetZero.
“We have many portfolio-level goals and a lot of high-level commitment to net zero, but (they) haven’t lowered it to the sector level. That’s the difference between the real economy. Will bring, “Andrews said.
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The United Nations urges the G20 to confirm its commitment to climate change in the financial sector
https://www.investing.com/news/stock-market-news/un-urges-g20-to-ensure-finance-sectors-climate-pledges-are-solid-2656628 The United Nations urges the G20 to confirm its commitment to climate change in the financial sector