The United Nations Climate Change Summit on Monday outlined the dire need for carbon control. Global investors at the summit warned against the biggest financial crisis in history that will result from continual avoidance of climatic adversities.
The United Nations Climate summit on Monday held in Poland, witnessed global investors coming together to issue a serious warning against increased carbon emissions. The second week of the summit was marked by the need to act fast on the policies and plans of the Paris Agreement.
Investors cautioned governments about the upcoming economic catastrophe that would create a bigger financial deadlock than the 2008 financial crisis. The global investors included some of the most powerful economic institutions in the world, from asset managers to insurers. In the Global Investor Statement signed by 415 groups, the investors kept forward three demands:
- Fulfillment of the Paris Agreement goals
- Acceleration of Private sector investment into low carbon transition
- Commitment to better climatic financial reporting
IMF Investors’ Chris Newton asserted, “The long-term nature of the challenge has, in our view, met a zombie-like response by many,” adding, “This is a recipe for disaster as the impacts of climate change can be sudden, severe and catastrophic.” Asset management firm Schroders affirmed the possibility of facing $23 trillion global losses per year without accelerated action to curb climatic adversities. The summit further proposed greater restriction on coal burning and heavy taxes on emissions.
Investors tabled the idea of ending subsidies on coal, gas and oil, emphasising on the need to modify the present carbon-cut pledges of nations, which could result in global warming at 3C. Reportedly, putting an end to subsidies can result in a 10% decrease in carbon emission by 2030.
The Trump Administration is scheduled to hold an event to promote the use of ‘clean coal’ later on Monday.