The Carney-led finance coalition has up to $ 130tn of financing committed to reaching net zero

The Mark Carney-led coalition of international financial firms, signed to tackle climate change, has committed up to $ 130tn of private capital to achieving net zero-emission targets by 2050.

The Glasgow Financial Alliance for Net Zero (Gfanz) – made up of more than 450 banks, insurance companies and asset managers in 45 countries – said it could provide as much as $ 100tn in funding to help economies move to zero-zero over the next. three decades.

“We now have the necessary plumbing in place to move climate change from the fringes to the forefront of finances so that any financial decision takes climate change into account,” said Carney, the former governor of the Bank of England who has chaired Gfanz. since its launch in April.

Investment managers accounted for $ 57tn of assets, with $ 63tn coming from banks and $ 10tn from asset owners such as pension funds. Among the financial groups registered with Gfanz are HSBC, Bank of America and Santander.

However, the total capital figures presented by Gfanz diverted skepticism from some climate advocates tracking the financial services industry. The climate commitments were “a mile wide and an inch deep,” said Becky Jarvis, a bank strategist on our Future campaign network.

Asset managers who had joined Gfanz had so far adjusted only 35 percent of their total assets to net zero targets, she said. “It’s not green funding, nor is it all dedicated in the slightest to tackling climate change, as long as financiers have major interests in expanding fossil fuels,” she added.

Mark Campanale, founder of the financial think tank Carbon Tracker Initiative and a member of Gfanz’s advisory committee, said that $ 130tn of assets was not “aligned with net zero today”, but that “the ambition [was] for the assets to be adjusted ”in the future.

He added that no group involved in the expansion of fossil fuel projects could claim that it was heading towards net zero.

Gfanz has been criticized by climate activists for allowing financial groups to continue to support fossil fuel companies in the short term.

“This announcement once again ignores the largest elephant in space,” said Richard Brooks, climate finance director at Stand.earth. “There is no mention at all of the F-words in this new statement from the net zero clubs. We can not keep below 1.5 degrees [warming] if financial institutions do not stop financing coal, oil and gas companies. “

Last month, the Financial Times revealed that banks joining Gfanz had pushed back against the most explicit greenhouse gas emission reduction roadmap presented by the International Energy Agency, which would have demanded that they stop funding all new oil, gas and coal exploration projects this year.

Carney has called on financial institutions to commit to phasing out coal financing and addressing “the implications of the IEA’s net zero analysis”, but this is not mandatory for Gfanz signatories.

Also on Wednesday, British Chancellor Rishi Sunak confirmed the plans announced in October to require UK companies from 2023 to publish net-zero driving licenses, describing how they plan to decarbonise by 2050.

A task force composed of industry representatives, academics, regulators and civil society groups will be established to develop a “gold standard”.

Gfanz also said Wednesday that Michael Bloomberg, the former mayor of New York, would join Carney as co-chairman. The group will report regularly to the G20 Financial Stability Board on its work. Mary Schapiro, former chairman of the U.S. Securities and Exchange Commission, becomes vice president.

Bloomberg and Schapiro are already involved in another Carney initiative, a task force aimed at establishing a voluntary regime for climate change financial disclosure (TCFD).

In connection with this, the International Financial Reporting Standards Foundation, the global accounting body, launched the International Sustainability Standards Board, to establish globally consistent climate information standards for financial markets.

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