Just weeks before the Conference of COP26 Climate Change to be held in Glasgow, banks avoided committing to the clearest plan to reduce greenhouse gas emissions to net-zero by 2050. According to an internal message viewed by Financial, Mark Carney-headed initiative negotiators, who push financial groups to quit supporting fossil fuel businesses, all new gas, oil, and coal this year was informed to big banks by Mark Carney-led initiative negotiators. The Times had a hard time persuading them to agree to stop supporting the exploratory effort. The International Energy Agency’s study backs this up (IEA).
Majority of the 59 banks which have endorsed the previous Bank of England Governor’s initiative choose to follow the aims of the UN’s Intergovernmental Panel on the Climate Change (IPCC). The Glasgow Financial Alliance for Net Zero (Gfanz), founded by Kearney in April, has gathered the support of roughly 300 financial institutions with a combined asset value of $ 90 trillion. The analysis was published by the IEA in May. “No one wants their name associated with IEA 1.5C. [targets]” According to a source close to the bank’s discussions. “They believe it to be a fairy tale.” More than 190 countries signed the 2015 Paris Agreement, promising to keep global warming far below 2 degrees Celsius, ideally 1.5 degrees Celsius, over pre-industrial levels.
The Gfanz Alliance, led by Kearney, has put together a set of initiatives aimed at guaranteeing that the world’s major banks and financial firms meet their net-zero emissions objective by 2050. “The next few weeks of this pivotal decade will help us determine whether to prevent a climate change disaster,” says UN Special Envoy for the Climate Change and Finance Mark Carney. Neil Hall / EPA-EFE / EPA-EFE The COP26 negotiations would focus on the regulations for accomplishing the Paris Agreement next month, with the role of money in climate change being a major topic of debate.
Gfanz called for action, urging the G20 government to implement a set of critical policies aimed at attaining net-zero emissions. Ending fossil fuel subsidies, dispersing cash for a “fair” transition, eliminating oil power and unabated coal facilities by 2040, and forcing all corporations to comply by 2024 are all part of this strategy. Advanced climate reporting, as well as global financial reform, are among the items on the agenda. Green investment will be aided by regulations.
“On their own, financial companies are unable to support an economy. “The G20 government requires a clear, credible, and ambitious climate policy,” said UN Special Envoy for the Climate Change Kearney stated. “The next few weeks of this pivotal decade will determine whether or not we can avoid a climate catastrophe.”
The Net Zero Banking Alliance (NZBA), which also includes HSBC, Bank of America, and Santander, is a Gfanz banking group that sets goals for the climate change scenarios championed by either the UN IPCC or the Paris-based IEA.