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Back then, I wouldn’t have believed that we would come so far in international collaboration on climate change, such as the ParisAgreement,” he said. For example, agricultural assets may be at risk of stranding because of physical climate impacts such as drought and desertification. It’ll be a mess.”
Or that slashing regulation means being more competitive, even though a fossil fuel-led race to the bottom exposes our economies to insecurity, instability and strandedassets. There is a better story to tell one rooted in both present market realities and a vision of a liveable and prosperous future. Stand with us to move forward.
By: Chris Lewis, Global Infrastructure Leader at EY At COP27 in November last year, there was an overwhelming consensus that the target of lowering global temperatures by 1.5 ° C – as outlined in the historic ParisAgreement – is now at risk of not being met, unless the world acts now.
For financial institutions such as banks, insurance companies and investment managers, scope 3 emissions from supplychains and lending/investment portfolios are often more complex than for other industries. For example, the indicative financed emissions from the UK financial sector in 2019 were found to be 1.8
After the ParisAgreement the message was clear: Ambition, Ambition, Ambition. These include a commitment by nations to increase their emissions targets to pursue the 1.5ºC objective of the ParisAgreement and rules for a robust and transparent global carbon market. C alive, just.
Meanwhile, the US Inflation Reduction Act (IRA) , which was signed into law last year, includes direct support for port emissions reductions through electrification and will further contribute to building out the country’s domestic green ammonia supplychain through its clean hydrogen tax incentives.
And while there are instructive parallels with the catalytic impact of the ParisAgreement on identifying and mitigating climate risks by the private sector, there are also important differences. Nature is at the base of every supplychain. Ecosystem services are absolutely critical to the creation of GDP.
This realisation was partly sparked by the strandedassets debate initiated by Carbon Tracker in 2013, says Vanston, with research conducted by the London School of Economics’ Grantham Research Institute calling on regulators, policymakers and investors to re-evaluate energy business models against carbon budgets, to prevent a US$6 trillion carbon (..)
At COP26 in Glasgow last year, governments, businesses, and other stakeholders in the automotive industry and road transport committed to “rapidly accelerating the transition to zero emission vehicles to achieve the goals of the ParisAgreement”. These issues reduced vehicle choice and availability over the past year.
While Group of Seven governments are announcing grand plans , asset owners in developed markets are increasingly keen to play their part in this transition. . In April, a Principles for Responsible Investment (PRI) ? How are investors currently getting involved in Africa’s energy transition? .
C and implement the ParisAgreement and will be welcomed by the business community. C temperature goal of the ParisAgreement alive, and to ensure a just transition. . It makes no long-term sense to continue pumping money into an asset that is already destined to eventually have no value — a strandedasset.
The global fight against climate change is gradually gaining momentum, with countries like Canada, China, Germany, India, Japan, and the EU reaffirming commitment to the ParisAgreement, and more than 80 mayors in the US confirming that they will continue with agreed guidelines.
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