Stronger domestic and international policy is needed to help unlock investment in low-carbon technology in the absence of a global climate deal, investors with over $15 trillion of assets said on Tuesday.
A United Nations summit in Cancun, Mexico, starts in just two weeks’ time to negotiate a new global climate deal but expectations have sunk to a modest package that includes a fund to manage aid to poor nations, new ways to share clean technology and to protect tropical forests.
Around 260 investors, including Dutch pension fund ATP, HSBC and Deutsche Bank Asset Management, called for Cancun to deliver $30 billion of climate aid promised last year, in a statement released by the U.N. Environment Programme Finance Initiative.
“Among the investors’ key priorities is delivery of promised fast-start climate financing, consistent with pledges at last year’s U.N. climate negotiations in Copenhagen,” a UNEP Finance Initiative statement said.
Last December, rich nations promised $30 billion of “fast start” finance to help poorer countries adapt to climate change and reduce their greenhouse gas emissions from 2010 to 2012.
European governments have promised to deliver 2.2 billion euros ($3.07 billion) but critics say the aid comes from rebranding existing pledges.
Global clean energy investment has been forecast to exceed $200 billion in 2010 but it still falls far short of the $500 billion thought to be necessary per year by 2020 to limit global warming. More private capital would be available if stronger policies were in place, the investor group said.
The group wants the Cancun meeting to show progress on finalizing the financial architecture of climate funding and a timeframe for implementing a U.N.-backed forest preservation scheme.
It also hopes for greater clarity on the future of carbon market mechanisms, support for energy efficiency and renewable energy markets in developing countries and a clear mandate to adopt a legally binding pact at next year’s summit in South Africa.
In a separate statement, businesses including Royal Dutch Shell, Alstom, Vodafone and EDF, called on governments to pursue bilateral, sectoral or regional agreements instead of waiting for a global deal.
