[ad_1]
Private investors are ready to save money to help the government stimulate the economy and transition to a low-carbon world, says a major industry group.
Representing 1,200 international investment firms managing assets worth $ 35 trillion, the Investor’s Agenda sent a letter to the New Zealand and G20 governments requesting all recovery funds from Covid-19 to take into account account the climate crisis. Members include the managers of the NZ Super Fund and Pathfinder Asset Management.
Governments should avoid prioritizing “risky, emissions-intensive projects in the short term,” the letter said.
Since immediate pandemic relief plans, such as wage subsidies, have already put pressure on the government’s books, private investment will be critical to the longer-term economic recovery, the group said.
READ MORE:
* Coronavirus: Greens propose $ 1b economic recovery package based on nature
* For Earth Day, UN chief urges ‘green recovery’ in response to coronavirus
* Climate change: we are borrowing from our children, so let’s make it count
Emma Herd, executive director of Investor Group Climate Change, which represents Australia’s industry and co-signed the letter, said investors will not put their money into projects that may be vulnerable in a warming world.
“If you are a bank, an insurance company or a pension fund, you will take the risks of climate change into account when making investment decisions,” he said. “Investors expect companies to continue planning for net zero transition and climate resilience.”
The economic recovery was an opportunity to combine public and private cash to finance projects that are “good for the economy and good for society,” Herd said.
“In New Zealand, transportation is one of the largest emission areas. There is a lot of appetite for the deployment of electric vehicle infrastructure,” he said. “That is a really key opportunity.”
Robert Steven / Things
Financing the infrastructure to power electric vehicles could create jobs and reduce the country’s emissions, investors say.
“There is also a major upgrade to the basic and essential infrastructure that needs to happen (water, utilities, electricity transmission), big and big projects that we need to consider in terms of readiness [for climate change]”
From involving investors in the planning and design stages to providing tax incentives, governments had many ways to promote private investment in sustainable projects, Herd said.
Green investing offers a variety of benefits: it boosts the economy, creates jobs, reduces pollution, and provides energy security.
“When we analyze these economic recovery policies and measures, we must think about the type of recovery we want to face the problems we face as a community,” he said.
Fake images
In 2015, the Paris Agreement was negotiated, which aims to limit global warming to 1.5C above pre-industrial levels.
The Investor Agenda calls on governments and companies to honor their commitments under the Paris Agreement, which aims to limit global temperature rise to 1.5 ° C.
Abandoning the target “is not an option that should be on the table at any time,” Herd said. “As an investment community, we believe that it is in the best financial interest of the world to continue to uphold the Paris Agreement and to continue to push with greater ambition.”
The letter said that public bailouts, loans and tax incentives offered to any carbon-intensive company should be conditioned on the business transition to meet the objective of the Paris Agreement and achieve zero net emissions by 2050.
In the example of Air New Zealand’s $ 900 million loan, Herd said the government could indicate that the airline is expected to continue to comply with Corsia’s agreement to offset and reduce aviation emissions.
“We have to start with the principle that whatever we do, we will be planning climate change as part of that decision-making process,” he said.
The Investor Agenda’s call for a green economic recovery echoes that of the Climate Change Commission and other climate-friendly groups.
