Written by 278 researchers from 65 countries & based on the analysis of 18,000 scientific studies, the Intergovernmental Panel on Climate Change (IPCC), United Nations body for assessing the science related to climate change, released its 6th assessment report on April 4th 2022.
What does the report say?
Currently, the world is not reaching its mitigation and adaption goals. Financial flows fall short in all sectors and regions of the required levels. An estimated US$3-3.5 billion per day short of what is required to protect what remains of nature & the resources it provides us. If we hope to limit global warming to 1.5° C and its vastly more expensive consequences, both financially and on human societies, we need a massive and immediate reorientation of money flows to close the finance gap for both mitigation and adaptation measures.
What are some of the challenges?
Immediate action and international cooperation as it is mandatory to achieve ambitious climate change mitigation goals. It requires clear policies from governments and international financial cooperation. Developing countries, stewards of a very large part of the planet’s natural ecosystems, and which will bear the largest negative consequences of global warming, need to be supported by developed countries to attract financing.
What is the good news?
It is not too late to act. Climate change mitigation goals can be achieved. This crucial shift requires trillions in public and private finance BUT it is 100% achievable and only requires a small fraction, about 0.15%!, of all the money under management in the global capital markets. There is sufficient global capital and liquidity to close global investment gaps. Investing to reduce emissions is URGENT & a profitable investment in the long term. A much cheaper investment for societies then bearing the suffering the most significant effects of climate change.
Let’s act to tackle this vital challenge. WE need to combine political will to mobilise and coordinate the actions of our governing bodies & redirect some of our financial resources to where it is the most needed and rewarding in the long run.
To read the full report click here.