1. Home
  2. »
  3. News
  4. »
  5. UN Climate Change publishes the Net Zero roadmap for financial markets
NEWS
UN Climate Change publishes the Net Zero roadmap for financial markets
08/11/2021 Since 1 month

The UN Climate Change Secretariat has published a new document stating 2050 Vision and Summary in the context of the Climate Action Pathway – Finance theme.

The Vision statement defines that “by 2050, financial markets, institutions and systems are in place to support and fund a resilient zero-carbon… As a result, flows of capital have been redirected to sustainable and climate-resilient development”.

This pathway defines two high-level impact areas that global efforts will need to focus on to realize this vision for 2050: 1) Transitioning finance in line with a 1.5 ºC, resilient future and 2) Financing the transition in line with a 1.5 ºC, resilient future.

In order to transition finance, and finance the transition, in line with a 1.5 °C, resilient future, the document includes the definition of road mapping actions needed to be taken by different actors, on five key topics / impact areas:

• Closing the ‘valuation gap’, correcting market failures and unpriced externalities
• Tackling the ‘tragedy of the horizon’ and short-termism
• Creating systemic transformation tools and building capacity
• Improving incentives and risk management
• Zero carbon, resilient infrastructure and real assets

The report also covers the progress already made in transition finance in the last 18 months. A number of initiatives have been launched to enable financial institutions to set and achieve net zero operational and financed emissions by 2050, including: UN-convened Net-Zero Asset Owner Alliance (NZAOA) (currently 42 institutional investors with USD 6.6 trillion in assets under management); the Paris Aligned Investment Initiative’s Net Zero Asset Owner Commitment; the Net Zero Asset Managers Initiative (currently 87 signatories with USD 37 trillion in assets under management); and the Net-Zero Banking Alliance (45 banks with USD 29 trillion in assets under management).

This post is also available in: Spanish

LATEST NEWS
FEBRABAN Banking Economy Award
Since 2009 FEBRABAN has been promoting the FEBRABAN Banking Economy Award, which aims to encourage debate and academic research on themes related to the financial market and banking economy. In this 13th Edition, a...
Since 2 days Read More
Climate Bonds Initiative highlighted key figures of Sustainable Debt Market 2021
Total volumes for labelled Green, Social and Sustainability (GSS) bonds, Sustainability-linked bonds (SLB) and Transition bonds reached nearly half a trillion (USD496.1bn) in the first half of 2021. This amount repres...
Since 1 week Read More
Corfo launches technology programme to boost agriculture in desert areas
Corporación de Fomento de la Producción (Corfo), the Chilean government agency in charge of fostering national production and promoting regional economic growth, launched a new technology programme with which they aim...
Since 3 weeks Read More