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Regional investor climate groups create formal global coalition, join PRI for Doha letter

Global Investor Coalition will represent groups at international treaty talks.

The four regional investor climate groups in Europe, the US, Australia/New Zealand and Asia, which include some of the world’s leading institutional investors, controlling more than $22.5 trillion in assets, have joined forces to create the Global Coalition on Climate Change (GIC), to act as a unified body for lobbying governments on international climate treaties. And in a first campaign under the new name, the Global Coalition has allied with the Principles for Responsible Investment (PRI) and the United Nations Environmental Finance Programme (UNEPFI) to write to governments with a series of policy recommendations ahead of COP 18 in Doha, which starts next week (November 26).
Europe’s Institutional Investors Group on Climate Change (IIGCC), the Investor Network on Climate Risk (INCR) in the US, Australasia’s Investor Group on Climate Change (IGCC), and The Asia Investor Group on Climate Change (AIGCC), said they would remain as separate organisations for the purposes of regional climate policy work, but that the new coalition would represent investors in international discussions and be the umbrella group for international projects of common interest.
Among the seven recommendations in the joint Doha letter, the coalition calls on governments to back reliable and predictable clean energy policies and avoid withdrawing policy commitments that undermine the confidence of investors. It says that where carbon markets are in place or are under development, governments should also seek to increase their effectiveness by linking them up for common trading.The joint letter calls for the opening of a “new dialogue” between investors and the governments of the world’s largest economies on climate policy. This, it said, should engage financial ministries and financial sector representatives on questions of actively deploying private capital in renewable energy, clearing up regulatory blockages, and phasing out subsidies for fossil fuels, which they say remain six times higher than subsidies for renewable energy sources.
Speaking to Responsible-investor.com, Nathan Fabian, Chief Executive Officer at Investor Group on Climate Change, said the GIC had a number of other joint projects under development including a forthcoming statement on risks associated with methane emissions in the oil and gas sector, and investment consultant engagement project and a Global Investor Conference in Hong Kong, June 2013.
Chris Davis, who directs the INCR, said decision-making at the GIC would be taken by consensus amongst the existing climate groups and that there would be no new specific structure.
He said the coalition made sense for ‘levering up’ some of the groups’ existing work into a practical single representative body.
The 18th Conference of the Parties (COP) meeting will take place from Monday, 26 November to Friday, 7 December 2012 at the Qatar National Convention Centre in Doha, Qatar.