Christine Lagarde is expected to make the European Central Bank a pioneer in fighting climate change by slashing its purchases of bonds issued by fossil fuel companies and other heavy carbon emitters, according to a Financial Times poll of economists.
“2021 must be the year of a great leap towards carbon neutrality,” said António Guterres, UN Secretary-General to a virtual gathering of influential leaders on Monday. “Every country, city, financial institution and company should adopt plans for transitioning to net zero emissions by 2050.” “By early 2021, countries representing more than 65 per cent of global carbon dioxide emissions and more than 70 per cent of the world economy are very likely to have made ambitious commitments to carbon neutrality,” he said. “The signal this sends to markets, institutional investors and decision-makers is clear. Carbon should be given a price. We must shift the tax burden from income to carbon, from taxpayers to polluters.” He added that financial reporting on exposure to climate risks should be made mandatory, while authorities must integrate the carbon neutrality goal into economic and fiscal policies in order to truly transform industry, agriculture, transportation and the energy sector.
More than half of European pension schemes now consider climate risk – up from just 14% last year, according to a survey by Mercer. This trend is growing and underscores the value of Riskthinking.ai’s tools for assessing and responding to climate risk.