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As politicians exit COP26, $130tn worth of financiers take the stage -Breaking

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© Reuters. Rishi Sunak, Britain’s Chancellor, speaks at the UN Climate Change Conference, COP26 in Glasgow (Scotland), UK, November 3rd 2021. REUTERS/Yves Herman

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Simon Jessop & Andrea Shalal

GLASGOW (Reuters). – As national leaders have left the U.N. conference on climate in Scotland, Wednesday’s attention shifted to state treasuries. This was followed by the financial institutions and businessmen who are responsible for executing the promises of infrastructure building and reducing emissions.

The main purpose of the COP26 negotiations is to make enough promises by national governments to reduce greenhouse gas emissions – mainly from the burning of ubiquitous fossil fuels – in order to avert climate catastrophes and keep the world’s temperature rising to 1.5 degrees Celsius.

However, it is unclear how these promises will be met in developing countries. The most important thing is that it will take a lot of cash.

The most difficult questions to answer are: Who should pay? And how can the money be directed through the financial systems quickly and efficiently. The main goal is to raise more private money.

They are such important that organizers made Wednesday a day for public financial leaders and executives to talk about them.

Glasgow Financial Alliance for Net Zero, an umbrella group which includes all major Western banks, insurers, and asset managers, announced that the firms that manage $130 trillion of capital (equivalent to 40%) had agreed to take a “fair portion” of global decarbonisation.

Mark Carney (UN climate ambassador) said the U.N. had to come up with creative ways for private money to be channeled into investments that support the U.N.’s drive to ‘net zero” greenhouse gas emissions by 2050.

According to him, “The money’s here but net zero-aligned project are required. Then there is a way for this money to become a very powerful virtuous circular – and that’s my challenge.”

100 TRILLION REQUIRED

His estimate was that $100 trillion worth of investments would be needed in the coming three decades.

He said, “We require blended finance facilities that do not mobilize fractions private capital for public dollars but multiples…in double digits.” This is possible with existing facilities, but we must scale them up dramatically.

The chances of mobilising such a large amount of money could decline if countries do not agree to Glasgow’s emission reduction goal expansion.

John Kerry, U.S. Climate Envoy, stated that there was only a 60% chance the world would stop warming by 1.5 Celsius.

He stated that around 65% was covered now by plans for climate change. “That means 35% isn’t. And we can’t do it without that 35%.”

Rishi Sunak, British Finance Minister, gave UK companies up to 2023 to outline their plans for a shift to low-carbon economies. He also provided interim targets.

The UK has committed 100 million pounds (or $1136 million) towards climate finance. It is also helping increase “green bonds”, which are used to fund climate-friendly projects.

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