G20 countries must ratify the Paris/COP21 climate agreement soon to ensure strong climate policy is guaranteed, and to attract more renewable energy investment, according to a consortium of international institutional investors.
The Institutional Investors Group on Climate Change (IIGCC), a group of 130 institutions which support $13 trillion worth of investment, urged the G20 nations to ratify the Paris agreement.
The IIGCC said in a letter that the Paris agreement will send strong policy signals to support significant investments in renewable energy. Establishing a carbon pricing plan, phasing out fossil fuels, supporting renewable energy, and enacting energy efficiency initiatives are critical to climate success, the IIGCC noted.
The Paris agreement shows that a clear path for investors shifting to clean energy is currently opening up, but the world’s most influential countries need to take the next step quickly.
IGCC Executive Emma Herd said G20 leaders have lots of potential to influence investment. “Investors are asking companies: tells us what the implementation of the Paris Agreement means for your business so that we can price that risk accordingly,” Herd argued.
Some nations are taking the lead on supporting renewable energy. A North American agreement this summer between Canada, the United States, and Mexico is one such example. The agreement is to make sure 50% electricity comes from zero-carbon sources by 2025.
The G20 has lots of power within the global economy. By ensuring all G20 nations fast-track their commitments to the Paris agreement, this will send a stronger statement to all economies to move towards a clean energy economy now.
The overarching groups behind the letter to the G20 (and other climate action) are:
- AIGCC (Asian Investor Group on Climate Change)
- CDP (Carbon Disclosure Project)
- IGCC (Investor Group on Climate Change | Australia/NZ)
- IIGCC (Institutional Investors Group on Climate Change | Europe)
- INCR (Investor Network on Cimate Risk | Ceres North America) and,
- PRI (Principles for Responsible Investment).
Related: Clean Energy Investment Reaches $61.5 Billion In Q2’16
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