A leading global investors group, which owns trillions of dollars in assets, has urged the world’s richest nations, especially the Group-20 (G20) members to formulate an environment-friendly policy for their pandemic recovery exit. The move of the collective group of global investors was decided since it anticipated a fear that many powerful countries would speed up their industrial productions and mostly energy sectors focusing to recover their slumping economy, which was hammered by the coronavirus outbreak.
Global Investors Seeking Sustainable Policy
The group, which comprises several notable international organizations, called on that the wealthiest nations must ensure their COVID-19 recovery plans to be based on environmentally sustainable and formulated as per the goals set in the Paris climate accord. Among G-20 members, especially European countries such as Britain, France, and Germany have made their pledge to respect and set their recovery policies as per the global environmental policy. Yet, some of the biggest carbon emitters including China and the United States (US) have not made any statement regarding their policies.
The investor group considered the need for such intervention since governments across countries would ramp up their business operations after lifting of lockdown with an aim to recover the broken economy. For the post-lockdown period, the groups expected that private capital would play a key role in the recovery, but investors had to consider long-term policies supporting a move to a low-carbon economy.
On Monday, May 4, 2020, the group said in a statement, “Recovery plans that exacerbate climate change would expose investors and national economies to escalating financial, health, and social risks in the coming years.” The Institutional Investor Group on Climate Change, a member of the group asserted, “Governments should avoid the prioritization of risky, short-term emissions-intensive projects.”
Several Leaders Calls for Similar Actions
The group, which supported the Investor Agenda for sustainable, included United Nations (UN)-backed Principles for Responsible Investment, Ceres, CDP, Investor Group on Climate Change, Asia Investor Group on Climate Change, and the UNEP Finance Initiative. Apart from spending on creating jobs of the country, the group insisted that the recovery plan must include working to meet the goal of net-zero carbon emissions across sectors including energy, industrials, building, and transport.
Last week, UN Secretary-General Antonio Guterres urged the G20 nations to pave a way for “brave, visionary, and collaborative leadership” to lead such initiatives of using COVID-19 relief funds to accelerate the de-carbonization of the world economy. He said that the G20 collectively accounted for more than 80% of global emissions and over 85% of the global economy, and global efforts for sustainable development would be a failure without a contribution by the biggest emitters.
Moreover, similar calls for a green recovery were proposed in recent days from several leaders across the globe including the International Monetary Fund’s Managing Director, Kristalina Georgieva, and German Chancellor, Angela Merkel.
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