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COP26 coalition worth $ 130T promises to put climate at the center of finances



(Reuters) – Banks, insurance companies and investors with $ 130 trillion at their disposal promised on Wednesday to put the fight against climate change at the center of their work and received support in the form of efforts to put green investment on a firmer footing.

And in another development at the COP26 UN climate conference, at least 19 countries are expected on Thursday to commit to ending public funding of fossil fuel projects abroad by the end of 2022, two sources said.

In an earlier announcement at the Scotland meeting, financial institutions that account for about 40% of the world's capital to take a "fair share" of efforts to wean the world off fossil fuels.

A key objective of the COP26 negotiations is to secure sufficient national from coal, oil and gas ̵

1; to keep the rise of the global average temperature to 1.5 degrees Celsius.

But how to fulfill these promises, especially in developing countries ld, is still being worked out, and it will require a lot money.

UN Climate envoy Mark Carney, who amassed Glasgow Financial Alliance for Net Zero, set the figure at $ 100 trillion over the next three decades, saying the financial industry must find ways to raise private money to take efforts far beyond what states alone can do. [19659002] "The money is here – but that money needs net zero – adjusted projects and (then) there is a way to turn this into a very, very powerful vicious circle – and that is the challenge," the former governor of the Bank of England told the summit. [19659002] Mr. Carney's comments reflect a problem often mentioned by investors who, in the face of a myriad of climate-related risks, must be sure that they are reported in an open and preferably standardized way globally.

"Some of the most important interconnected pieces of the financial puzzle are now being to rally, "said Nick Robins of the Grantham Research Institute on Climate Change and the Environment.

Another piece of the puzzle is where public money will help the transition from coal-intensive energy and industry comes from, and on Wednesday the United States said it would support a mechanism to provide new funding for clean energy and sustainable infrastructure in emerging markets.

USA. Finance Minister Janet Yellen said the United States would join the UK to support the Climate Investment Fund's new capital market mechanism, which would help attract significant new private climate funds and provide $ 500 million a year to the CIF's Clean Technology Fund, as well as its new Accelerating Coal Transition

"The reason I'm here is because climate change is not just an environmental issue. It's not just an energy issue. It's an economic, development and market destabilizing issue, and I would not do my job if I did not. treated it with the seriousness that was justified, "said Minister of Finance Yellen.

Scratch holes

But others were not convinced by the progress of COP26. These happy headlines hide a lot of loopholes and opportunities for decline which we can not afford if we are to avoid climate collapse, "the Environmental Justice Foundation said in a statement.

" N A zero promise means nothing without the sale of fossil fuels. Time for financial institutions to put their money where their mouths are and stop funding climate-destroying fossil fuels, "added NGO President Steve Trent.

Mr Carney has led an effort to ensure that financial institutions account for and disclose the full climate risks with their lending or investment, forcing the wider economy to price costs that have hitherto been largely hidden.

These include not only the direct effects of extreme weather events, but also possible losses of government subsidies for fossil fuels, or health and environmental costs

Kristalina Georgieva, Head of the International Monetary Fund, said it was crucial to incorporate climate data into daily macroeconomic reporting.

Vice Chair of the Global Financial Stability Board, Dutch Governor Klaas Knot, stated that a mandatory global minimum standard for climate risk detection now needed for financial stability and the provision of sustainable le finance.

The change in private sector financial institutions was hailed by British COP26 President Alok Sharma who said:

"What we have seen in recent years is a major step in the private sector and the financial services sector to go green … in the 1990s, clearly (then) climate finance, investing in green, was not mainstream. I think it's mainstream now. "

China's central bank governor, Yi Gang, said Beijing was working on a new monetary policy facility to provide cheap funds to financial institutions to support green projects.

Enthusiasm from the private sector Mobilizing climate-friendly investments also requires assurances that governments set emission reduction targets that are ambitious enough to meet the 1.5 Celsius target – it is by no means certain that they will occur at the end of COP26 on 12 November.

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