In the years to come, climate change will continue to be one of the biggest challenges facing society, whatever the policies are today. Fortunately, key players in our financial system are beginning to realise that they play a crucial role in the shift to a low-carbon economy. Policymakers, financial players and other investors are developing concrete solutions, both here in Belgium and internationally.
From Divestment to Climate-Friendly Investments
A growing number of members in our network are interested in investing in the transition to a low-carbon society. We want to help these institutional investors in this complex process. That is why we launched the learning network Climate Friendly Investments in the second half of 2017.
We started by charting the yield and risk profile of alternative portfolios. How? With the study Impact of disinvestment by asset owners. Thanks to this scientific foundation, we were able to put together a core group of convinced investors. They met for the first time this year, on 6 February, to exchange knowhow with peers and receive further guidance.
Belgium, the EU and the World Bank are on board too
At the end of January, the EU High Level Expert Group on Sustainable Finance published its final report. It includes recommendations on how we can define ‘sustainable development’ clearly. The report also offers investors specific ways to help achieve the Paris climate agenda.
At the end of 2017 the World Bank announced that it will invest fossil free as of 2019. You can learn more about the financial sector’s plans concerning climate friendly investments in this report on the One Plannet Summit.
The One Planet Summit took place in December 2017 on the 2nd anniversary of the COP21 Climate Agreement. Belgium celebrated this anniversary with the launch of its Green Bonds. These are classic bonds with which the Belgian State finances sustainable and environment friendly initiatives. Belgium is only the second country in the world, after France, to issue this type of bonds. Institutional players such as banks and insurers can subscribe to them as of the first quarter of 2018.
More climate action from The Shift and our members
Focussing on investments is one way of making our global economy low-carbon faster. In addition, though, there are lots of organisations in our network that are working towards the same goal through mobility, Science Based Targets and other concrete climate campaigns. Read more about it in this article.