IEA: Emissions to hit record by 2023 if green investment remains locked away
The International Environment Agency’s forecasts have warned today that emissions will hit a record high in just two years unless more green investment is unlocked.
After a brief fall last year at the height of the pandemic, which halted supply chains and pushed people homebound, the world is on track to surpass 2018’s emissions record.
If emissions do peak past 2018 levels, the 2015 Paris Agreement’s goal of limiting global warming to 1.5C will be unachievable.
G7 governments pledged a ‘green recovery’ post-pandemic last month, while globally more than £11.7 trillion has been injected into the cause so far.
“Of more than $16 trillion [£11.7 trillion] only two per cent is going to clean energy investments. This is by far not enough. What we will see is that 2023 will reach an all-time record high. This is very worrying,” executive director of the IEA, Fatih Birol, said.
An increasing number of businesses, wealth funds and investors have been opting for climate-conscious investment chains as environment, social and governance (ESG) measures edge higher on the investor agenda.
Earlier today, insurance giant Zurich UK switched nearly $1bn of its investment portfolio into a new ESG benchmark in its bid to slash its carbon footprint.
The new benchmark will deliver a 30 per cent reduction in emissions, compared to its parent index, the insurer said.
But investment needs to be harnessed at a global scale to draw back the IEA’s emissions trajectory.