Let’s unleash the power of investment
“Let’s unleash the power of investment. Let’s build the sustainable, green and equitable world we need”.
In his keynote address at this first edition of the EU Sustainable Investment Summit, UN Secretary-General António Guterres delivered this cautionary message: “Our world is in trouble. (…) The disastrous impacts of climate change are more visible by the day. Without decisive action, we are gambling away our last chance to — literally — turn the tide”.
There is no question that with the world still reeling from the deep economic and social impacts of the COVID-19 pandemic, now more than ever there is a need for “more ambitious 2030 climate and biodiversity plans” to “ensure a green and resilient recovery”, the Secretary-General noted. He called for the need for commitment in the goal to achieve carbon neutrality by 2050, through immediate and concrete action, such as the elimination of coal plants for example.
Achieving these goals is no small feat, Secretary-General Guterres conceded, it will require “bold and ambitious commitment” on the part of both developed and developing countries – namely through finance. The EU is leading the way, with its Strategy for Financing the Transition to a Sustainable Economy, offering “a blueprint for integrating sustainability into investment decisions and financial products”, the Secretary-General said.
But this is not sufficient, he warned. Public and private investors need to do more, and scale up investment, particularly in developing countries and sectors. They need to shift investment away from fossil fuels and towards renewable energies instead and offer financial and technical support to help reach climate neutrality and a just transition to a sustainable economy.
Ahead of the UN Climate Change Conference COP26 in Glasgow next month, it is time to implement the 100 billion dollar finance commitment made by developed nations in Paris 6 years ago. The need to help developing nations “shift from fossil fuel-dependent economies to ones based in renewable sources” is clear, stated Secretary-General Guterres.
Going further still, he called for investment into health care, education, universal social protections and sustainable jobs. Crucially, the Secretary-General pledged to “invest at least 50 per cent of climate finance to help people and communities adapt and build resilience” and to “shift the tax burden away from people’s incomes and towards carbon and pollution instead”.
United-Nations Secretary-General António Guterres concluded his keynote address with a clear call to cation: “Let’s unleash the power of investment”, he said. “Let’s build the sustainable, green and equitable world we need.”