On coal, money, cars and trees – a commentary in the first week of the United Nations climate conference

Getting out of Money Perhaps the most important and urgent policy step is to limit warming to a maximum of 1.5°C. This week, more than 40 countries committed to phasing out coal by the 1930s and 1940s. The United States, China, India and Australia have not yet joined this commitment. However, given the low cost of renewable energy, simple economic considerations can speed up the transition, as bankruptcy of coal-fired power plants was a rapid succession even during the last US administration.

What is that Money As far as it is concerned, COP26 is often referred to as the “financial COP”. Asset managers and asset owners have joined the new Glasgow Financial Consortium to Net Zero (GFANZ), which should represent $130 trillion in assets (even if there’s likely a double number here). Even if a small part of it is used specifically for green solutions, the transition to a net-zero economy requires not only investments in low-carbon technologies, but also a large-scale reorganization of the entire economy and therefore also investment in portfolios – and this is exactly where it can be The GFANZ Alliance has a tremendous impact.

what the trees As far as it is concerned, climate change is driven not only by energy-related emissions but also by emissions from land-use changes – including those related to deforestation. Ending deforestation and investing in reforestation is becoming increasingly important, as not only the relatively low costs of this measure are recognized, but also the benefits associated with the environment in general, biodiversity and the communities that depend on it. World leaders and 30 financial institutions – including Lombard Odier – pledged to halt deforestation and provide financial support to some priority regions such as the Congo Basin.

And what about the cars? Perhaps most noticeable is the presence of electric cars used by participants in and around Glasgow. The new agenda aims to further advance the tipping point at which electric vehicles and other environmentally friendly technologies replace existing alternatives. The top five targeted solutions include clean electricity, electric cars, green steel, hydrogen, and sustainable agriculture – a taste of the technologies that will shape the net economy.