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Mark Carney hosts first GFANZ CEOs meeting

The first meeting of the Glasgow Financial Alliance for Net Zero (GFANZ) CEO Principals Group has taken place. The Group discussed GFANZ’s priorities, workstreams and deliverables for COP26 and beyond.

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The global campaign to rally leadership and support from businesses, cities, regions, investors for a healthy, resilient, zero carbon recovery.

THE GLASGOW FINANCIAL ALLIANCE FOR NET ZERO

Achieving the objective of the Paris Agreement to limit global temperature increases to 1.5°C from pre-industrial levels requires a whole economy transition – every company, bank, insurer and investor will have to adjust their business models, develop credible plans for the transition and implement them.

Mainstream private finance will help all companies realign their business models for net zero. It will fund the initiatives and innovations of the private sector and turn billions committed to climate investment through public channels into trillions of total climate investment.

There is already growing ambition and action from leading financial institutions. The world’s largest asset owners and managers, controlling over USD$37 trillion, have joined the UN Race to Zero campaign (the world’s largest net zero coalition, representing 708 cities, 23 regions, 2,162 businesses, 127 of the biggest investors, and 571 universities).

However, unlocking systemic change will require coordinated and ambitious commitments across the entire financial system. Previously, there was no forum for this, nor, more fundamentally, were there ‘Race to Zero’ entry vehicles for some of the most important sectors of finance (banking, insurance underwriters, FMIs). This undermines our collective goal of ensuring coherency and consistency across the financial sector.

To overcome this challenge at the speed and scale required, Mark Carney and the COP26 Private Finance Hub – in partnership with the UNFCCC Climate Action Champions and the Race to Zero campaign and the COP26 Presidency – are launching a coalition that brings together existing and new net zero finance initiatives into one sector wide strategic forum: the Glasgow Financial Alliance for Net Zero (GFANZ).

GFANZ will broaden, deepen and raise ambition in the financial sector, allowing firms to demonstrate their collective commitments to supporting companies and countries to achieve the goals of the Paris Agreement. GFANZ will catalyse strategic and technical coordination on steps firms need to take to align with a net zero future. Anchored in the Race to Zero, the entry criteria will help to ensure credibility and consistency of net zero commitments.

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