Paris Agreement signals acceleration of low-carbon transition; end of fossil fuel dominance
Anthony Hobley, CEO of the Carbon Tracker Initiative, said:
“With this historic deal world leaders have unambiguously confirmed their commitment to limit dangerous warming and nearly every country has published its own plan to limit carbon emissions. This is a new kind of inclusive global agreement providing a framework for action. It sends a strong signal that will accelerate the low-carbon transition that is already underway.
“The necessary carbon budget to deliver the 2 degrees target and maintain ambition for 1.5 degrees means the fossil fuel era is well and truly over. There is absolutely no room for error. Fossil fuel companies will need to accept that they are ex-growth stocks and must urgently re-assess their business plans accordingly.
“New energy technologies have become hugely cost-competitive in recent years and the effect of the momentum created in Paris will only accelerate that trend. The need for financial markets to fund the clean energy transition creates opportunity for growth on a scale not seen since the industrial revolution.
“Carbon Tracker will now focus on the immediate task of translating this unambiguous signal for global financial markets, so that they can increase the flow of investment and capital towards activities that are consistent with a low-carbon world, and correctly price-in the risks associated with high-carbon activities. This ‘Paris Effect’ will build momentum behind an orderly economic transition and help minimise the destruction in value of some of the world’s biggest companies.
“The Paris Climate Summit was not only the first to agree a universal climate framework and to deliver an emphatic signal for action, it was also the first where the financial sector turned out in force. From the CEOs of some of the world’s largest pension funds, asset managers, insurance companies and banks to the Governor of the Bank of England and Chair of the international Financial Stability Board, the world’s money managers were truly engaged.
“With governments committing billions to transform their own economies and help developing countries achieve climate-secure growth, international financiers stand ready to unlock trillions of dollars to accelerate the move to a low-carbon world. They recognise the strong and growing demands for climate action from businesses, investors and other non-government actors, and they are well aware of the risks to financial markets of failing to achieve an orderly transition.”
Anthony Hobley is available for further comment on:
firstname.lastname@example.org Mob: +44 (0)7872698580