The former head of the Bank of England hacked a $130 billion green fund in Glasgow at the United Nations World Conference on the Environment. The Paris economic newspaper, Les Échos, researched to find out what made this a reality.

On the last day of October, COP26, the 26th United Nations climate conference, kicks off in Glasgow. The meeting was preceded by great expectations, as several reports indicated that the countries of the world had done little so far to avoid the catastrophic consequences of climate change. Will there be a breakthrough now? Follow COP26 developments with us!

With $70 billion raised, fundraising began in April for the United Nations Climate Change Fund. “It’s not enough!” Happy Mark Carney, former Governor of the Bank of England and now, as head of the fund, is regulating global financial institutions for the Great Green Transformation.

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It turns out in Glasgow that the fund now has a co-chair: billionaire Michael Bloomberg, who was previously the mayor of New York. His personality may also have appealed to bankers because an alliance of the world’s largest investors, banks, and insurance companies now manage $130 trillion in assets together and are committed to using the capital to reach the net-zero emissions target for their investments by 2050, thus placing climate change mitigation at the center of financial decisions. home for decades to come.

What is considered a green investment?

“In this regard, we are struggling with a lack of confidence,” the UN Secretary-General stressed in Glasgow. I targeted a double problem with this: there are no set standards for green investment, and therefore it is difficult to say when financial institutions will support the fight against climate change and when they will not. The other problem is that a large number of banks and financial institutions are also happy to finance the extraction of traditional energy sources, hampering the green transformation of the global economy.

Net Zero – A title called Science Based Targets has published a report that seeks to clarify the issue of standards. The organization’s co-founder, Cynthia Commis, said: Bloomberg The portal reporter said that “since there is no consensus on the net-zero criteria, financial institutions may pretend to have already implemented the green transition when there is no doubt about it.”

The head of the NGO “Reclaim Finance” has publicly called on banks and financial institutions to reduce or end funding for polluting sectors. According to Lucy Benson, “only hollow promises have been made.” According to him, “Banks and financial institutions should put concrete plans on the table on how they want to reduce funding for oil, gas and coal production.”

French banks and financial institutions are also confused

Although the International Climate Protection Convention was signed in Paris, and French President Emmanuel Macron was one of its most prominent fighters, the reality in France is that the green transition is quite late. Moreover, French financial institutions are financing more and more conventional energy production. 146 billion euros were spent for this in 2015, but by 2020, the amount spent by French financial institutions on conventional energy sources had risen to 174 billion euros, according to the Paris newspaper. reverberation.

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