{"id":2400,"date":"2022-04-25T15:30:13","date_gmt":"2022-04-25T15:30:13","guid":{"rendered":"https:\/\/investinternational.nl\/?p=3493"},"modified":"2024-07-31T14:09:04","modified_gmt":"2024-07-31T13:09:04","slug":"beleggers-moeten-zich-dringend-inspannen-om-ipccs-oproep-te-beantwoorden","status":"publish","type":"post","link":"https:\/\/investinternational.nl\/nl\/news-items\/investors-must-urgently-raise-their-game-to-answer-ipccs-clarion-call\/","title":{"rendered":"Beleggers moeten dringend hun spel opvoeren om gehoor te geven aan de oproep van het IPCC"},"content":{"rendered":"\n\n

There was a heightened level of urgency in the latest climate change report from the International Panel on Climate Change<\/a> (IPCC). We all know it has been warning the world for years about the irreversible effects of climate change. Global emissions continue to rise and are now at the highest point in history. But for the financial community, a crucial element of the report was the call for a massive shift in investments over the next five to ten years [p.15-47] towards \u201cvery low- or zero-carbon energy sources\u201d [p. SPM 32].\r\n\r\nImpact Investors such as Invest International must answer this clarion call by drastically increasing investments in climate adaptation and resilience, and early-stage development of fossil fuel alternatives, write Anselm Iwundu, Manager Impact & ESG, and Eelco de Groot, Coordinator ESG Infrastructure.<\/p>\n\n\n

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Sustainable energy<\/h2>\n\n\n

The good news is that the costs per Megawatt for sustainable energy have substantially decreased over the past few decades<\/a> . It means that the shift from fossil fuels to renewables is now more financially viable than ever.<\/p>\n

The bad news is that climate finance needs to grow 590 per cent annually to meet internationally agreed climate objectives<\/a>. Growth was just 10 per cent in 2020. So, there is clearly a long way to go.<\/p>\n

Across the board, the financial sector needs to heed the IPCC\u2019s urgent call to implement ambitious climate investment policies and scale-up financing efforts. More than half of the 150 largest financial institutions still have no restrictions on financing oil and gas. And only a third of the biggest banks and asset managers have set concrete climate targets<\/a>.<\/p>\n\n\n

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Invest International as impact investor<\/h2>\n\n\n

As a newly established impact investor, Invest International finances innovative Dutch solutions to make a difference in the global economy. We do this by creating more decent jobs, sustainably transforming international value chains, and contributing to global decarbonisation.<\/p>\n

This makes climate change one of its most important themes. Invest International already invests in modest hydropower projects, concentrated solar plants and geothermal energy. And it is poised to apply shadow carbon pricing and make concrete commitments on a net-zero portfolio in the coming years. But efforts need to be scaled up. In particular, Impact Investors like Invest International should dramatically increase their investments in at least two areas \u2013 climate adaptation and resilience, as well as early-stage development of fossil fuel alternatives.<\/p>\n

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Read more on our view on impact<\/a><\/div>\n<\/div>\n\n\n
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Source: \u00a9 Sixth Assessment report IPCC.<\/p>\n<\/figcaption><\/figure>\n\n\n

IPCC<\/h2>\n\n\n

The IPCC noted that on average, between 2017 and 2022, about 90 per cent of global climate finance largely focused on climate mitigation [p.TS-123] \u2013 measures designed to reduce harmful emissions. On the other hand, finance for climate adaptation \u2013 measures to prepare for and adjust to both the current and future effects of climate change \u2013 continues to lag behind. It now stands at USD 46bn in 2020, while up to USD 300bn is required by 2030 according to UNEP\u2019s Adaptation Gap Report (UNEP,2021).<\/p>\n

Adaptation projects such as coastal restoration and protection, water monitoring and flow-forecasting systems, flood risk management, and restoration of tidal flow to coastal wetlands, are often ignored. But these projects have strong social-economic impacts and some mitigation benefits as well.<\/p>\n\n\n