In the race to Net Zero, investors cannot only focus on their portfolios when setting targets

  • With the responsible finance market buzzing about its role in mitigating climate change and risk, there is a divide among stakeholders about what “Net Zero” in finance should include
  • Emerging markets — which need $95 trillion for a Just Transition — are especially likely to fall out of favor in ‘portfolio decarbonization’, which could dry up investment where it’s needed most
  • Some approaches to ‘portfolio decarbonization’ are methodologically simpler than what the UNFCCC Race to Zero and SBTi guides toward, but they come with some in-built limitations that may inhibit the financing needed for transition to a low-carbon economy

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Blake Goud

Blake Goud

Promoting adoption of responsible finance in Islamic markets & Islamic finance. CEO @RFIFoundation.