SINGAPORE Nov 20 A coalition of the world's
largest investors called on governments on Tuesday to ramp up
action on climate change and boost clean-energy investment or
risk trillions of dollars in investments and disruption to
In an open letter, the alliance of institutional investors,
responsible for managing $22.5 trillion in assets, said rapidly
growing greenhouse gas emissions and more extreme weather were
increasing investment risks globally.
The group called for dialogue between investors and
governments to overhaul climate and energy policies.
The call comes less than a week before major U.N. climate
talks in Doha, Qatar. Almost 200 nations will meet in Doha from
Nov. 26 to Dec. 7 to try to extend the Kyoto Protocol, the
existing plan for curbing greenhouse gas emissions by developed
nations that runs to the end of 2012.
On Sunday, the World Bank said current climate policies
meant the world was heading for a warming of up to 4 degrees
Celsius by 2100. That will trigger deadly heat waves and
droughts, cut food stocks and drive up sea levels.
"Current policies are insufficient to avert serious and
dangerous impacts from climate change," said the group of
investors from the United States, Europe, Asia and Australia.
The investments and retirement savings of millions of people
were being jeopardised because governments were delaying
tougher emissions cuts or more generous support for greener
The group said the right policies would prompt institutional
investors to significantly increase investments in cleaner
energy and energy efficiency, citing existing policies that have
unleashed billions of dollars of renewable energy investment in
China, the United States and Europe.
But many economies were still going to be heavily reliant on
polluting fossil fuels such as coal, and policies needed to be
implemented to speed up the shift to cleaner energy, the
They issued seven action points, including slashing fossil
fuel subsidies and boosting carbon markets, for governments to
focus on and said the re-election of Barack Obama in the United
States and the leadership change in China were an opportunity to
push for tougher climate talks.
"Strong carbon-reducing government policies are an urgent
imperative," said Chris Davis, director of investor programs at
Ceres, a U.S.-based coalition of investors and green groups.
"Hurricane Sandy, which caused more than $50 billion in
economic losses, is typical of what we can expect if no action
is taken and warming trends continue," said Davis, who also
works for the Investor Network on Climate Risk, which groups 100
institutional investors with assets of more than $11 trillion.