The global financial services industry is calling on the G20 governments for quicker and greater climate action to build a net zero global financial system to propagate a more sustainable planet.
The Glasgow Financial Alliance for Net Zero (GFANZ), which represents more than $90 trillion (£66tn) assets in 40 countries, has published the ‘Call to Action’.
The report urges the G20 to:
- Ensure economy-wide net zero targets are in line with the 1.5°C aims of the Paris Agreement.
- Reform financial regulations to support the net zero transition.
- Phase-out fossil fuel subsidies and fossil fuel goals.
- Make net zero transition plans mandatory, along with climate reporting for public and private enterprises by 2024.
- Unlock the trillions-worth of climate finance needed to support developing economies reach net zero.
- Stop illegal deforestation by working alongside businesses and farmers.
- Promote sustainable regenerative agricultural practices and make these a viable alternative.
- Improve the quality standards of offsetting.
- Support research to help lower the cost of green energy solutions such as green hydrogen, sustainable aviation fuels and sustainable infrastructure.
The firms in GFANZ are all members of the UN’s ‘Race to Zero’ campaign and have all set net zero targets for 2050 at the latest.
Mark Carney, UN Special Envoy for Climate Action and Finance and Prime Minister Johnson’s Climate Finance Advisor for COP26, said: “Through GFANZ, the best of the global financial system has committed to net zero. The scale of these commitments – over $90tn of balance sheets – is approaching the enormous financing need for the global transition.
“But financial firms can’t deliver sustainable economies alone – clear, credible and ambitious climate policies are needed from G20 governments.
“The next few weeks in this decisive decade will help determine whether we avoid climate catastrophe. The core of the financial sector is stepping up – it’s time for major economies to do the same.”