Over 200 global investors urge G7 to back climate deal

Illustration (Image: flickr/Olearys)

Over 200 global investors, managing more than $15 trillion in assets, have called the G7 member countries to stand by Paris Agreement and drive its swift implementation.

The group of investors sent the letter to G7 country members, including the United States, Canada, France, Germany, Italy, Japan and UK, underscoring the urgency of action by G7 nations to implement the global climate pact and deliver their emissions reduction commitments.

The investors have called the G7 governments to bring forward focused and targeted long-term climate and energy plans that will ensure their future actions align with commitments under the pact to keep global average temperature rise to well below 2°C.

Also, the G7 has been called to drive investment into the low carbon transition through aligning climate-related policies, phasing out fossil fuel subsidies and introducing carbon pricing where appropriate.

The call comes amidst speculation that the United States could pull out of the Paris Agreement, reached in December 2015, and before the G7 Summit, set to take place on May 26-27, 2017 in Italy.

Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change (IIGCC) in Europe, said: “Investors recognize the global transition to a low-carbon, clean energy economy is now firmly underway and they want to make well-informed decisions that help Paris Agreement signatories deliver their national commitments.

“Regardless of what the US administration does, it’s vital that every signatory across the G7 and G20 adopts policies that drive better disclosure of climate risk, curb fossil fuel subsidies and put in place strong pricing signals sufficient to catalyze the significant private sector investment in low carbon solutions.”

The signatories of the letter have also urged government leaders to ensure that climate change is explicitly acknowledged at the G20 Leaders Summit, to be held on July 7-8, 2017.

“Investors believe it is vital that the governments of G7 and G20 nations continue to publicly express their commitment to support climate finance to both mitigate and adapt to the effects of climate change,” it is stated in the letter.