A coalition of the world’s biggest firms with a collective capital of over $130 trillion has pledged to dedicate their funds to help reach net zero carbon emissions by 2050.
The Glasgow Financial Alliance for Net Zero (Gfanz), a group of 450 banks and finance officers from 45 countries, said that the amount will help the private and financial sector accelerate their net zero commitments.
“We now have the essential plumbing in place to move climate change from the fringes to the forefront of finance so that every financial decision takes climate change into account,” said Mark Carney, former Bank of England governor and head of the finance coalition.
In their statement, Gfanz said that a broad range of financial firms has voluntarily committed to investing only in companies that will comply with emission policies.
The group also pledged to regularly report the emissions that they finance and undergo reviews every five years.
However, the pledge has been met with skepticism from various climate groups. In a statement by environmental coalition Stop the Money Pipeline, organizations agreed that Gfanz’s commitment will not slash its funding of fossil fuel producers.
“This announcement yet again ignores the biggest elephant in the room: fossil fuel companies,” said Richard Brooks, director of STAND.earth. “We cannot keep under 1.5 degrees if financial institutions don’t stop funding coal, oil and gas companies.”
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