Finance Day at COP27 in Egypt, November 2022, once again brought together global investors to find ways to address climate change. While there has long been an acceptance that action on climate change is impossible without the financial services sector, this COP moved into a new phase. “If Paris was the ‘what’, and Glasgow was the ‘how’, Egypt was about implementation,” says Gill Lofts, EY global sustainable finance leader. Central to this is finance.
The 14-day meeting of 200 countries highlighted the crucial role investors must play in addressing the climate crisis. The COP agreement text calls for the need for the financial system to reform, support and enable climate goals. The finance section of the Sharm el-Sheikh Implementation Plan highlights the vast sums required to facilitate the energy transition and calls for “a transformation of the financial system and its structures and processes, engaging governments, central banks, commercial banks, institutional investors and other financial actors.”
CISI members can sign in to continue reading