Financial Institutions Call for Action on Climate Crisis

A coalition of 534 financial institutions managing US$29 trillion in assets urged global governments to take significant action to address the climate crisis at the upcoming COP29 climate forum. The coalition released a 2024 Global Investor Statement on Tuesday, calling for policies that would unlock private capital necessary for a green transition.

The initiative is led by founding members of The Investor Agenda, a climate leadership initiative supported by Ceres, a nonprofit organization, the United Nations Environment Programme Finance Initiative, and the Carbon Disclosure Project, among others. This statement coincides with New York’s Climate Week and precedes the United Nations’ annual climate summit in November.

In the statement, investors called on policymakers to implement strategies that require climate-related reporting and disclosures, tackle biodiversity challenges, and enhance private investment focused on climate mitigation. The Investor Agenda members, which also include the UN-Backed Principles for Responsible Investment and various regional investor groups, urged governments to adopt more ambitious emissions reduction targets in their Nationally Determined Contributions (NDCs).

The statement emphasizes the importance of aligning the 2030 and 2035 targets with the Paris Agreement's goal of limiting the global temperature rise to 1.5°C. Signatories requested that governments provide financial incentives, such as grants and loans, to support the development of climate technologies that facilitate a net-zero transition. They also called for the scaling up of low-carbon energy systems and the promotion of electrification, energy storage, and clean energy infrastructure.

Additionally, the letter urged governments to eliminate fossil fuel subsidies, replacing them with clean energy subsidies or tax incentives that encourage clean energy use and low-emission fuels. The coalition advocates for a phased approach to end unabated fossil fuel use, in accordance with credible 1.5°C pathways, which includes enhancing pollution standards for major emitters and increasing energy efficiency across various sectors.

Mindy Lubber, CEO and President, Ceres, stated that addressing the climate crisis requires a whole-of-government approach. She echoed the letter's call for public-private partnerships and sector-specific strategies to effectively combat climate change and biodiversity loss. “This set of critical policies will unlock the private capital needed to accelerate the just transition to a resilient, low-carbon, nature-positive economy,” Lubber said in a statement.

Signatories of the statement include prominent institutions such as the California Public Employees’ Retirement System, California State Teachers Retirement System, New York State Common Retirement Fund, and UBS Asset Management, among others. Investors can join the initiative and sign the statement until Nov. 1, ahead of the COP29 summit in Baku, Azerbaijan. The final list of signatures will be presented to participating governments at the conference.