The COP26 summit in Glasgow brings together leaders from across the globe to build on the work left unfinished by COP25 and the goals set out in the Paris Agreement.
Why is COP26 so important?
We are already seeing glimpses of what awaits if climate inaction continues; in recent years, extreme weather events have risen in frequency, bringing devastation to countries across the globe. Furthermore, an alarming climate change report published by the UN’s Intergovernmental Panel on Climate Change (IPCC) in August found that ‘it is more likely than not’ that the global temperature will reach the so-called ‘tipping point’ of 1.5 degrees above pre-industrial temperatures within the next 20 years.
COP26 goals
The conference has four main goals:
1. Secure global net zero by mid-century and keep 1.5 degrees within reach
Countries are being asked to put forward ambitious carbon emissions targets by 2030.
2. Adapt to protect communities and natural habitats
Countries will work to find ways of protecting and restoring ecosystems and preventing further habitat loss in the future.
3. Mobilise finance
Developed countries must work to release trillions in private and public sector finance.
4. Work together to deliver
The challenges presented by the climate crisis can only be tackled by working together.
The investment industry has signalled its intention to play a role in the global climate transition. Launched in December, the Net Zero Asset Managers initiative has grown to over 120 investors managing $43trn – all committed to supporting the net zero goal and investing aligned with net zero emissions. COP provides an opportunity for investors to consider how they can innovate in developing solutions to climate issues and in financing sector transition.
Institutional Investors Group on Climate Change CEO, Stephanie Pfeifer, commented on the popularity of the initiative, “In just six months nearly half of the global asset management sector has committed to achieving net-zero emissions with their clients across the funds they manage. This marks a fundamental tipping point across the investment sector and a significant boost in efforts to tackle climate change and decarbonise the global economy. There’s a lot more to achieve, but the sector is increasingly on a path to a net-zero future.”
Investors increasingly recognise the threat posed by climate changeWith so much to achieve to bring climate change under control, it can be difficult to know what we can do at an individual level. Investors have the power to put their money into companies that are actively working to limit climate change.
The United Nations 26th Conference of the Parties – also known as COP26 – is being touted as the most important climate change event since the 2015 Paris Agreement.
