Now is the time for investors to act for a green recovery, says UN envoy
The UN Envoy on Climate Action and Finance, Mark Carney, says that stimulus financing during the COVID-19 recovery needs to support low-carbon industries if we are to ensure a sustainable and green future. The pandemic is a unique opportunity for governments and companies to invest in resilience and adaptation.
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nvestors have an “enormous” opportunity to finance a shift to a low-carbon future in the wake of the coronavirus pandemic, United Nations envoy Mark Carney said on Friday, launching a new diplomatic campaign to revive delayed climate change talks.
With November’s major climate summit postponed until 2021 due to the virus, the British hosts are backing a “Race to Zero” initiative to spur investors, cities and companies, as well as countries, into making bolder pledges to cut emissions.
Race to Zero is an initiative that aims to encourage stakeholders in climate finance to integrate climate risks into their decision-making. Photo by UNFCCC
Carney, who took on the U.N. climate finance and diplomacy role after stepping down as Bank of England governor in March, said governments must learn from their failure to use the recovery from the 2008 financial crisis to rapidly decarbonise.
As companies redraw their strategies in the wake of the pandemic, “this creates an enormous strategic opportunity” for investors, Carney told an online event.
“You can’t wish away systemic risks and it’s much cheaper to deal with them upfront and mitigate them,” Carney said, speaking alongside British Business Minister Alok Sharma, who is due to preside over the next climate summit in November, 2021.
Race to zero
With major polluting countries still nowhere near slashing emissions in line with the 2015 Paris climate accord, diplomats are aiming to build momentum by securing commitments from business, finance and regional or municipal authorities.
At the “Race to Zero” launch, officials said almost 1,000 companies, 449 cities, 21 regions, and 38 major investors have pledged to cut their net carbon emissions to zero by 2050 — a marked increase since the last climate summit in December.
On Friday, a group of 109 investors with 11.9 trillion euros of assets under management wrote to European Union leaders urging them to use the bloc’s stimulus package to speed up its transition to a “climate neutral” economy.
The ideas presented in this article aim to inspire adaptation action – they are the views of the author and do not necessarily reflect those of the Global Center on Adaptation.
