A study from ASCOR finds that no country is on track to meet the 1.5C target based on their 2030 emission reduction pledges, showcasing a lack of significant progress among wealthy nations in addressing climate change, particularly in halting fossil fuel projects and financing commitments.
A recent study, conducted by the Assessing Sovereign Climate-related Opportunities and Risks Project (ASCOR), reveals that no nation is on course to achieve the targeted 1.5 degrees Celsius increase in temperature based on their proposed emissions reductions by 2030. Despite the substantial wealth of certain nations, the evaluation of 70 countries’ policies indicates that there is no significant difference in the ability of wealthier countries to address climate challenges compared to their less affluent counterparts. Concerns among investors are escalating, as they emphasize the necessity for strong government action and transparency in climate policies to ensure capital investment reflects environmental sustainability.
Victoria Barron, chief sustainability officer at GIB Asset Management and co-chair of ASCOR, expressed the urgent need for effective climate policies, stating, “Investors play a pivotal role in driving capital” and these investments require “robust and tangible national climate and energy policies.” The culmination of investor concerns alongside rising legal pressures from the public against governments failing to mitigate climate-related disasters highlights the urgency of immediate and substantial action to rectify the ongoing climate crisis.
In light of these findings, the research indicates that less than 20% of the assessed countries have committed to halting approval processes for new fossil fuel projects, and a disconcerting 80% lack credible and transparent plans to phase out fossil-fuel subsidies. While some countries, such as Costa Rica and Angola, are close to reaching significant climate benchmarks, overall financing for climate initiatives remains deficient. Over 80% of wealthier nations have not met their proportional commitments towards the annual international climate finance goal of $100 billion, which has now been raised to $300 billion following the COP29 climate summit.
The current global climate crisis has prompted investors to scrutinize governmental responses to emissions and climate policies critically. Wealthy nations, which have historically contributed significantly to greenhouse gas emissions, are under increasing pressure to provide leadership in reducing their carbon footprint. While many countries have made pledges towards emissions reductions, the efficacy and implementation of these commitments remain questionable. The ASCOR initiative aims to evaluate the climate-related actions of various nations systematically and provide investors with the tools necessary to assess risks and opportunities in sovereign debt related to climate change.
The analysis presented by the ASCOR reveals a concerning trend where even the wealthiest nations are falling short in their climate commitments and responses. As investors call for more credible and actionable policies, the urgency for countries to take expedited, transparent measures to combat climate change intensifies. The lack of progress reflects a broader challenge within international climate finance, which must be addressed to ensure global efforts are aligned with achieving the crucial 1.5 degrees Celsius target.
Original Source: www.bnnbloomberg.ca
