The recent IPCC working group report, approved by the 195 member countries, voices that we are currently falling behind in curbing GHG emissions and avoiding the worst consequences of climate change. Furthermore, the report also tells us that we currently have the tools we need to reach our goals, curb emissions by half by 2030, and reach net zero by 2050. Moreover, this is the first report that elaborates on the role of the finance sector and emphasizes how finance and investments can accelerate the climate battle and keep warming below 1.5 degrees Celsius. Conversely, the scientists highlighted that the financial sector underestimates the severity of climate change and states that investments in the shift to a low carbon world are about six times lower than it needs to be.
The IPCC working group 3 found that:
- Methane emissions must be reduced by a third. The biggest contributors to methane emissions are beef & agriculture 40%, oil & gas 25%, coal mining 15%, waste 20% (Source: IPCC AR5 Climate Change 2014: Mitigation of Climate Change)
- The use of coal needs to be drastically reduced and phased out to stay within 1.5 degrees Celsius.
- Reforestation and soil rejuvenation are necessary, but this alone will not compensate for the continued emissions caused by fossil fuels.
- Money still flows into fossil fuel projects which in turn will hinder the progress of climate change and will be considered stranded assets by 2050.
- This urgency can only be met if all sectors of the global economy revise their strategies and adopt new clean technologies immediately and rapidly.
- Policymakers have an important role to enable the push toward climate-driven investments by enhancing the desirability of clean energy investments both in the private and public sectors.
See the sectors of the economy that our Clear Skies Climate Action Fund aims to address.