According to US climate envoy John Kerry, President Joe Biden will issue an executive order on climate declarations in capital markets, a move that could change overall investments with implications for with fossil fuels and renewable energy.
“President Biden is ready to issue an executive order requiring the disclosure of information,” Kerry said at an International Monetary Fund event on Wednesday. “It will change the allocation of capital. Suddenly, people are going to make a long-term risk assessment for an investment based on the climate crisis. “
Kerry commented after IMF CEO Kristalina Georgieva said private capital had turned to favor less risky investments in climate. Kerry did not provide further details on potential orders or names of affected companies.
The White House did not provide further details on such an order.
The US Securities and Exchange Commission last month indicated that corporations would have to disclose more to shareholders about the risks from climate change and its impact on business. The committee opened a period for public comment on any potential rule changes. Shareholders are increasingly using the authorization process to promote boards on Environmental, Social, and Governance issues, and the SEC’s attention on this matter has grown.
Meanwhile, Kerry said as part of this week’s development that the US will support India’s climate plans. The United States will give India access to technologies and finance to achieve those goals, a commitment to cooperation that Prime Minister Narendra Modi and his cabinet officials predict will help to roll out clean technology faster.
Kerry is in India this week to speak with Asian energy leaders and push Modi’s government to boost its climate ambitions as they consider announcing their net zero target ahead of the summit. Virtual peaks held by the US later this month.
India, the world’s third largest emitter after the US and China, has come under pressure to strengthen climate commitments ahead of the meeting of leaders from 40 countries hosted by Biden will take place from 22 to 23 April and before formal UN climate negotiations in Glasgow in November.
Officials say 2047 targets for India’s net zero commitment are under review Bloomberg, earlier this year, a day that marked one hundred years of India’s independence from British rule. The 2050 pledge has been widely adopted by other countries.
When President Trump pulled the US out of the voluntary Paris climate deal, he made accusations of reducing emissions from China and India. Some Republican lawmakers said any climate change initiative, including those related to trade deals, must rely on the credibility of states. developing in meeting and reporting climate targets.
China announced its non-net target for 2060 last year. The Biden administration has said it is setting a U.S. net zero net emissions target by 2050 but is expected to soon map out what such a path might look like by 2030.
The US and China account for about 45% of total global emissions.
Biden’s infrastructure proposal calls for the US to invest $ 35 billion in clean technologies and spend $ 174 billion on overhaul of the country’s electric vehicle market. Congressional approval is needed.
Global leaders are positioning themselves on this important topic ahead of the Biden climate summit and the Glasgow meeting.
The head of the International Monetary Fund, Kristalina Georgieva, this week emphasized at IMF-World Bank meetings on her role with financial institutions when it comes to slowing warming. Global. She had a public discussion with Kerry on Wednesday as part of those meetings.
“2021 is likely to be a YEAR of climate action,” said Georgieva.
“We have a G-7 presidency [climate change] a priority, the G-20 makes this a priority, ”she said. “We have Cop-26 [in Glasgow]. We have science that speaks loud and clear and we have a multilateral environment where countries are stepping up their commitment to net zero by 2050 and in the case of China, by 2060. Use this to Building strong momentum is something the IMF strongly supports.