• A Report Card of G20 countries’ climate policies finds Australia is one of the least attractive green investment destinations
  • Strong 2030 emissions targets, net zero by 2050 and mandatory climate risk disclosure can close the gap and attract investment 
  • Investors with over US$46 trillion in assets are calling on G20 leaders to act as the most consequential international climate conference since Paris approaches  
  • G20 countries have a lot of work to do to ensure climate risk is effectively managed

 

18 October 2021 – An assessment released today by three major global investor groups finds that G20 countries have significant policy barriers deterring investment in the opportunities to tackle the growing climate crisis.

The G20 Countries’ Climate Policy Report Card finds that most G20 countries do not have the policy settings in place to attract the urgent investment needed in the zero emissions, climate resilient transition. This is a significant finding, with G20 countries accounting for 80 per cent of global greenhouse gas emissions.

Australia is among the least attractive countries for green investment, alongside Argentina, India, Indonesia, Mexico, Russia and Saudi Arabia, the Report Card finds. Less than two per cent of Australia’s COVID-19 economic recovery spending was on ‘green’ initiatives, compared for example to Canada, which spent 74.5 per cent.

With less than two weeks until the most consequential United Nations climate change conference in years (COP26 in Glasgow), time is running out for countries to commit to more ambitious and effective policies to address the climate crisis.

The Report Card measures G20 countries’ progress towards the five policy recommendations in the Investor Agenda’s 2021 Global Investor Statement to Governments on the Climate Crisis, which are key to unlocking the trillions of dollars needed to address the climate crisis.

The United Kingdom and European Union are found to be the most attractive destinations for green investment, although they still have substantial improvements to make.

The Report Card collates analyses from independent, credible and rigorous sources to enable investors to identify countries with the most and least attractive green investment environments. It is being released by Asian Investor Group on Climate Change, Ceres and the Investor Group on Climate Change, all of whom are founding partners of The Investor Agenda, a common leadership agenda accelerating investor action for a net zero future.

“Investors understand that climate risk is investment risk,” said AIGCC and IGCC CEO Rebecca Mikula-Wright and member of the Investor Agenda steering committee. “Investors want to seize the enormous investment opportunities that will be created in the transition to net zero. Across Asia, Australia and New Zealand, we are urging governments to step up and commit to clear and strong climate policies that will unlock the capital needed to transition to a net zero economy. Investors are ready.”

“Ambitious climate policies are critical market signals for investors around the world,” said Ceres CEO and President Mindy Lubber and current chair of the Investor Agenda. “With the right policy signals for robust economic transition pathways, investors will make large and necessary investments now. Our government leaders must do better to put the right policy settings in place. Those that do will benefit the most.”

Read full media release

See Report Card