For years, climate activists have warned that global warming would bring devastation on the planet, not only interferes countries and coastal communities to develop, but also the foundations of the global economy. Yet billions of dollars of fossil fuels investors continue to prioritize oil governments cheap flowing, and developers to create on the ground to keep the pumps political scientists say that soon under water. Kristalina Georgieva, 66, an environmental economist, who has taken the helm as director of the International Monetary Fund in administration in October, has much of his career studying spent the problem. Now, he says, a series of air crashes have finally woken up the financial sector and the entrepreneurs who lead them. “The blade shift,” he said in an interview with Time January 23 at the annual meeting of the World Economic Forum in Davos, Switzerland. Georgieva plans to take advantage of this moment. The new head of the International Monetary Fund described a series of measures will take over the global financial institution of climate change to give priority during his five-year mandate: to support activities that investors require to disclose climate vulnerability the financial situation of a country to some extent for its preparation for climate change, countries around the world push to introduce a carbon tax. “We must create a political right environment, which is based on a healthy economy,” he says. like “I’m priorities this. for the rear” At a time when much of the conversation climate focused on policy objectives conspicuous as the Green New Deal proposed by Democrats in Congress, the climate policy of the IMF and the changing melody of the financial sector and wobbly sound. But the climate challenge is unlikely fulfilled without and finance sectors are the authorities that regulate and control them, on the right side of the struggle. For decades, banks have given to fossil fuel companies to finance up to me and drills; Meanwhile, the seemingly bottomless subsidies governments have provided a bit ‘of $5 Katherine year, the International Monetary Fund said last year. At the same time, banks have largely ignored that climate change poses a risk to their customers, businesses in the flood zone of houses in areas prone fire. cans in Davos, there was no evidence of this change will be. A few days before the conference, BlackRock, the largest asset managers in the world, said it would bring climate change to a “fundamental restructuring of the financial” and promises to rethink their strategy. Microsoft is required to carbon negative in a decade, and in 2050 removed an amount of carbon equivalent to go to all that the company has ever issued. The value of assets managed in the asset owner Alliance Net-Zero, a group of investors committed to by 2050 a zero-emissions portfolio increased to more than $4.3 trillion. And the IMF has warned that climate change “of health and economic results already at risk.” “I do not want to be too naive, but I want to confirm that the center of the world economy is now saying things that many of us have dreamed about for a long time as possible,” said the former vice president to Gore at a dinner in Davos convened WWF. “They say it forcefully and eloquently.” Two major climatic risks, the discussion between managers and investors to dominate Davos: physical risk and the risk of so-called transition. The first is obvious. The events Change Drive extreme climate of the time and disasters, destroying floods and drought to forest fires and heat waves, infrastructure and CAN devastate economies. IMF data show that seven years after a devastating tropical storm, on a country’s GDP per capita 1% lower than it would otherwise have been the case. risk of transition refers to the possibility that companies get left behind the green-world industry companies sold through new regulation, for example, or new advances obsolete technology. Not the brand of growing activists (and consumers) facing clouded mention. The companies have been aware for years of these risks, in some cases decades, but executives have always seen them to manage than balancing act. Move too quickly and the risk of leaving your core business. They move too slowly and the risk of being left behind. But the speed and severity of the recent climatic events, along with the growing social pressure have made the biggest companies and investors realize that they were too conservative, leaving them with huge changes pace of which are already underway. “The degree of redistribution of capital and the rate of which will be larger and happen faster than most market participants expect,” Brian Deese, BlackRock Global Head of Sustainable Investment, TIME said in Davos. Georgieva will push the system together with the countries of make and companies are recognizing the threat of climate change poses to their bottom lines. For years the small islands IMF has tested for their exposure; this year will do the same for Japan, made in the construction of other riders advanced economies. In Davos, supports do to measure the central job banks, such as climate change could have an impact portfolios. The fight against climate change is not all bad news for the economy, says Georgieva as the creation of a transition to clean energy sources, new economic opportunities. “If we have the courage to really move, it might just be a way that increases the economy,” he said. The urgency of the climate debate in Davos reflects newfound reality of entrepreneurs. However, challenges remain. So far, it’s mostly just talk, of course. And for all managers and investors who say they are fighting climate change, there are other, the last few dollars they want to move in the era of fossil fuels. “This is an economic-year transition and in all sectors of the economy there are companies that are part of the solution and there are companies that, for some reason, springs,” said Mark Carney, Governor of the Banca d ‘ England, said in a Bloomberg plate held in Davos. Companies that the promises made in bold, have yet to deliver on them. As a teenager, Greta Thunberg activist said in perhaps the most watched moment of the week: “Virtually nothing has been done since the global emissions of CO have [subscript 2] not reduced.” In fact, global temperatures on the way to an increase of 3 ° C since the Industrial Revolution, even if governments follow through on their current obligations, blowing past the Paris agreement objective of the temperature rise well below 2 ° C on hold. Jennifer Morgan, Executive Director of Greenpeace International, described the dynamics as “tension” between the companies that work as part of the solution and see companies “old energy” driving with business-as-usual assumptions. A report by Greenpeace International released during Davos showed that 24 banks financing the fossil fuel industry in the amount of $1.4 Katherine adoption of the Paris Agreement in 2018. Even with this year, as some investors that change the tide begin to strengthen, Georgieva said the transition a push by government leaders take voluntary disclosure of climate risks. “To progress towards low-carbon, climate-resilient investments to accelerate, it would be wise to move towards mandatory disclosure,” said the Bulgarian. “It ‘a welcome sign that some central banks in this direction”. For all the declarations of intent burning in Davos, the real test lies in the coming months. This year will be a critical test of global commitments, governments are preparing new plans to make the November United Nations Conference on Climate Change to reduce emissions ahead of Glasgow. Davos was a good start; Guides speak. Now they must act. This appears in the February 10, 2020 issue of time. image copyright of Sikarin Fon Thanachaiary World Economic Forum
The financial industry dizziness wakes up to climate change
