The $25 Trillion Potential for 2030 | Net Zero Conversations | LSEG

TL;DR

The high level climate action champion of the UN discusses the role of the finance sector in driving the transition to a zero carbon future and the challenges of attracting private investment in emerging markets.

Transcript

nigel welcome and thank you for joining us on net zero conversations so nigel you are the high level climate action champion of the united nations can you tell us a bit about what that means in practice yeah it's a lot it's a long title right um uh well it's a role that was created as part of the paris agreement paris was a real breakthrough when w... Read More

Key Insights

• 🧑‍🏭 The high level climate action champion works with non-state actors to mobilize action and ambition in support of the Paris Agreement.
• ☄️ About 70% of the necessary investment for a zero carbon future needs to come from private finance.
• 🪐 The Glasgow Finance Alliance for Net Zero (G-FANZ) focuses on ensuring members fulfill their commitments and publish plans aligned with net zero emissions by 2050.
• 🙈 The finance sector plays a crucial role in attracting private investment to areas that historically haven't seen much interest.
• 🔒 Multilateral finance should be focused on leveraging in private finance rather than crowding it out.
• 🧑‍🏭 Increasing private investment in emerging markets requires building capacity and educating financial actors about the opportunities and risks.
• 🌐 Voluntary carbon markets can help distribute finance more equitably between the global north and the global south.

Questions & Answers

Q: What is the role of the high level climate action champion in the UN?

The role of the high level climate action champion is to work with non-state actors such as finance, private business, cities, states, and regions to drive ambition and action in support of the Paris Agreement's goals.

Q: How much private finance is needed for the transition to a zero carbon future?

About 70% of the necessary investment, which amounts to around $2 trillion per year in emerging markets and $3.5 trillion globally by 2030, needs to come from private finance.

Q: What is the main focus of the Glasgow Finance Alliance for Net Zero (G-FANZ)?

The main focus of G-FANZ is to ensure that its members fulfill their commitments to publish plans that align with the science of achieving net zero emissions by 2050, representing a fair share of halving emissions by 2030.

Q: How can private investment be attracted to areas or technologies that historically haven't attracted much interest?

One approach is to focus on leveraging in private finance through the smart use of limited multilateral capital. Additionally, it's important to educate the international financial community about the opportunities and lower risks that exist in emerging markets.

Summary & Key Takeaways

• The high level climate action champion works with non-state actors to drive ambition and action in support of the Paris Agreement's three pillars: getting to zero, building a resilient future, and mobilizing finance.

• The finance sector plays a critical role in helping governments transition to a zero carbon future, as about 70% of the necessary investment needs to come from private finance.

• The main focus of the Glasgow Finance Alliance for Net Zero (G-FANZ) is to ensure that members fulfill their commitments to publish plans in line with the science of achieving net zero emissions by 2050.