Quantcast

Investors With Over $34 Trillion Demand Climate Crisis Action

Renewable Energy
Waterloo Bridge during the Extinction Rebellion protest in London. Martin Hearn / Flickr / CC BY 2.0

Money talks. And today it had something to say about the impending global climate crisis.


Investors managing nearly half the world's capital, more than $34 trillion in assets, demanded governments around the world take action to stop the impending global climate crisis, as Reuters reported in an exclusive.

In an open letter to the leaders of the G20 countries, groups representing 477 investors stressed urgent action to reach the Paris climate agreement targets of limiting global average temperature rise to well below 2 degrees Celsius above pre-industrial times. Yet, current policies put the world on track for at least a 3 degrees Celsius rise by the end of the century.

To limit global temperature rises, the group of investors demanded that nations accelerate their carbon reduction targets, gradually eliminate coal as an energy source, stop subsidizing fossil fuels, and set a global price on carbon by the end of 2020, according to Reuters.

The statement from the group of investors also asked firms to improve their climate-related financial reporting, which will help them assess which companies are ready for a low-carbon transition and which companies are prepared for the climate crisis.

They also want to see governments push companies to improve their climate-related financial disclosures, to help investors better assess which firms are well prepared for a low-carbon transition and the impacts of climate change.

"It is vital for our long-term planning and asset allocation decisions that governments work closely with investors to incorporate Paris-aligned climate scenarios into their policy frameworks and energy transition pathways," the statement said, as Reuters reported.

The letter comes just before the G20 summit in Japan on Friday and Saturday and as United Nations Secretary-General Antonio Guterres urges countries to commit to more ambitious climate goals.

"There is an ambition gap... This ambition gap is of great concern to investors and needs to be addressed, with urgency," the investors warned in a statement alongside the letter, as Reuters reported.

That lack of ambition is evident in the host country Japan, which has been criticized for its plans to continue using coal power. In a draft statement ahead of this weekend's summit, Japan has weakened the G20's commitment to the Paris climate agreement in order to keep the US on board, according to Climate Home News.

Japan is far from the only country that argues for the continued use of fossil fuels to sustain economic growth. A report by researchers which tracks countries' progress toward limiting global warming showed that only five out of 32 nations studied have targets in line with a 2 degrees Celsius limit, according to Reuters.

Furthermore, the G20 countries have continued to back coal power, boosting their backing for coal-fired power plants, particularly in poorer nations, from $17 billion to $47 billion a year from 2014 to 2017, according to a report by the Overseas Development think tank, as Reuters reported.

The latest statement by investors comes as large institutional investors have started to move away from fossil fuels, both driven by ethics and by economic — as the price of renewables falls, fossil fuels will be less profitable.

"The big story in energy economics over the next decade will be the storming of the bastions of fossil fuels by renewable energy sources that are cheaper to build and run, orders of magnitude cleaner and also much easier and quicker to deploy," said Mark Lewis, the head of sustainability research at BNP Paribas, as the Guardian reported.

This latest statement from some of the world's largest investors comes after Norway's Wealth Fund, the world's largest sovereign wealth fund divested itself earlier this month of all its investments in fossil fuels, including oil exploration and coal-related stocks, according to the Guardian.

EcoWatch Daily Newsletter

Maximum heat indices expected in the continental U.S. on Saturday July 20. NOAA WPC

A dangerous heat wave is expected to boil much of the Central and Eastern U.S. beginning Wednesday, The Washington Post reported.

Read More Show Less
Retired Supreme Court Justice John Paul Stevens, who was appointed by President Gerald Ford in 1975, was presented with the Presidential Medal of Freedom by President Barack Obama on May 29, 2012. MANDEL NGAN / AFP / GettyImages

John Paul Stevens, the retired Supreme Court Justice who wrote the opinion granting environmental agencies the power to regulate greenhouse gases, died Tuesday at the age of 99. His decision gave the U.S. government important legal tools for fighting the climate crisis.

Read More Show Less
Sponsored
Golde Wallingford submitted this photo of "Pure Joy" to EcoWatch's first photo contest. Golde Wallingford

EcoWatch is pleased to announce our third photo contest!

Read More Show Less
EPA Administrator Andrew Wheeler signs the so-called Affordable Clean Energy rule on June 19, replacing the Obama-era Clean Power Plan that would have reduced coal-fired plant carbon emissions. U.S. Environmental Protection Agency / Twitter

By Elliott Negin

On July 8, President Trump hosted a White House event to unabashedly tout his truly abysmal environmental record. The following day, coincidentally, marked the one-year anniversary of Andrew Wheeler at the helm of the U.S. Environmental Protection Agency (EPA), first as acting administrator and then as administrator after the Senate confirmed him in late February.

Read More Show Less
A timber sale in the Kaibab National Forest. Dyan Bone / Forest Service / Southwestern Region / Kaibab National Forest

By Tara Lohan

If you're a lover of wilderness, wildlife, the American West and the public lands on which they all depend, then journalist Christopher Ketcham's new book is required — if depressing — reading.

Read More Show Less
Sponsored
Somalians fight against hunger and lack of water due to drought as Turkish Ambassador to Somalia, Olgan Bekar (not seen) visits the a camp near the Mogadishu's rural side in Somalia on March 25, 2017. Sadak Mohamed / Anadolu Agency / Getty Images

World hunger is on the rise for the third consecutive year after decades of decline, a new United Nations (UN) report says. The climate crisis ranks alongside conflict as the top cause of food shortages that force more than 821 million people worldwide to experience chronic hunger. That number includes more than 150 million children whose growth is stunted due to a lack of food.

Read More Show Less
Eduardo Velev cools off in the spray of a fire hydrant during a heatwave on July 1, 2018 in Philadelphia. Jessica Kourkounis / Getty Images

By Adrienne L. Hollis

Because extreme heat is one of the deadliest weather hazards we currently face, Union of Concerned Scientist's Killer Heat Report for the U.S. is the most important document I have read. It is a veritable wake up call for all of us. It is timely, eye-opening, transparent and factual and it deals with the stark reality of our future if we do not make changes quickly (think yesterday). It is important to ensure that we all understand it. Here are 10 terms that really help drive home the messages in the heat report and help us understand the ramifications of inaction.

Read More Show Less
Senator Graham returns after playing a round of golf with Trump on Oct. 14, 2017 in Washington, DC. Ron Sachs – Pool / Getty Images

Lindsey Graham, the South Carolina Senate Republican who has been a close ally of Donald Trump, did not mince words last week on the climate crisis and what he thinks the president needs to do about it.

Read More Show Less