The Glasgow Financial Alliance for Net Zero (GFANZ) was launched in April 2021 by Mark Carney, UN Special Envoy for Climate Action and Finance and UK Prime Minister Johnson’s Finance Adviser for COP26, and the COP26 Private Finance Hub in partnership with the UNFCCC Climate Action Champions, the Race to Zero campaign and the COP26 Presidency.

Bringing together existing and new net-zero finance initiatives in one sector-wide coalition, GFANZ provides a forum for leading financial institutions to accelerate the transition to a net-zero global economy. Its members currently include over 450 financial firms across 45 countries responsible for assets of over $130 trillion.

Call to Action

GFANZ’s Call to Action recognises the critical role financial services firms must play to support the transition to a green economy, which requires annual clean energy investment to more than triple by 2030 to around $4 trillion. However, if the world is to achieve an orderly transition to Net Zero – and so avoid the massive human, social, economic loss and financial instability associated with failing to meet the objectives of the Paris Agreement – more governments must follow through on the commitments of the Paris Agreement and ensure a Just Transition to a net zero global economy.

$4 trillion a year is not enough!

Note that CovCAN has shown that the cost of merely replacing all fossil fuels with clean electricity by 2050 would cost over $100 trillion, which equates to over $3 trillion per year for the next 30 years. This is just one part of what will be required to transition to a green economy. Hence the $4 trillion per year from 2030, if it materialises, would fall significantly short of what will be needed.

Note also that a temperature rise greater than 2C could cost $14 trillion per year, as we reported here.

More information

About GFANZ: https://www.gfanzero.com/about/

Download the call to action at https://assets.bbhub.io/company/sites/63/2021/10/GFANZ-call-to-action.pdf