Investors seek low-carbon 'clarity'
IIGCC urges government to produce clear, ambitious long-term plan
The Institutional Investors Group on Climate Change (IIGCC) has called on the UK government to produce a clear and ambitious long-term decarbonisation strategy.
Without greater vision, leadership and clarity on decarbonisation Britain may fail to attract enough investment to build a low carbon economy, the group said.
The IIGCC, whose members manage over €18 trillion in assets, was responding to BEIS’ request for comments on how to develop a sustainable plan to cut greenhouse gas emissions.
The group has published a report that sets out five core principles that it believes should feature strongly in an effective emissions reduction plan, from an investor perspective.
For the UK these include a robust carbon pricing as well as specific measures and targets for power generation, buildings/heating and transport.
“For pension funds and others investing for the long term, it’s vital the UK clarifies its decarbonisation ambitions to 2030 and as it leaves the European Union, but it must also start to envision how it plans to further raise ambition to drive additional decarbonisation to 2050 and beyond,” IIGCC vice-chair and ERAPF chief executive Phillipe Defosses said.