Investors urge action on climate change ahead of UN summit

More than 340 global institutional investors representing over 24 trillion U.S. dollars in assets called Thursday on governments to take action that supports, rather than limits, investment in clean energy and climate solutions.
The appeal, the loudest of its kind by global investors on climate change, came just days before UN Secretary-General Ban Ki-moon convenes his much-anticipated climate summit on Tuesday at UN Headquarters in New York.
"Gaps, weaknesses and delays in climate change and clean energy policies will increase the risks to our investments as a result of the physical impacts of climate change, and will increase the likelihood that more radical policy measures will be required to reduce greenhouse gas emissions," said the investors in a statement.
The statement was coordinated by four investor groups on climate change -- Ceres' Investor Network on Climate Risk in the United States, the European Institutional Investors Group on Climate Change, the Investors Group on Climate Change in Australia and New Zealand, and the Asia Investor Group on Climate Change -- with the United Nations Environment Program (UNEP) Finance Initiative, and Principles for Responsible Investment.
The groups are urging policymakers to balance difficult trade-offs between a development agenda and environmental concerns.
"The perception prevails that we need to choose between economic well-being (and) climate stability. The truth is that we need both," said Achim Steiner, executive director of UNEP.
"Having such a critical mass of (investors) demand a transition to the low-carbon and green economy is exactly the signal governments need in order to move to ambitious action quickly," he said.
According to the International Energy Agency, the world must invest at least an additional 1 trillion U.S. dollars per year -- a so called "Clean Trillion" -- into clean energy by 2050 to limit global warming to 2 degrees Celsius above pre-industrial temperatures and avoiding the worst impacts of climate change on our environment, health and the global economy.
Yet global investment in clean energy was just 254 billion dollars in 2013, UN officials said here.
Ceres President Mindy Lubber said that the financial community has a message for heads of state gathering at the United Nations next week.
"We cannot afford to wait any longer for a climate deal," she said, emphasizing that unmitigated climate change puts investments at risk.
Stephanie Pfeifer, chief executive of the European group, said investors are already taking action on climate change, from direct investment in renewables to company engagement and reducing exposure to carbon risk.
But to invest in low-carbon energy on a larger scale requires stronger policies. Next week's climate summit presents an opportunity for policymakers to ensure pockets of climate leadership turn into mainstream actions.
The one-day UN climate summit will focus on reducing greenhouse gas emissions, limiting deforestation and mobilizing financial support for action on the climate.
The United Nations hopes countries will agree to limit the rise in global temperature to less than 2 degrees Celsius by 2015.
Fiona Reynolds, managing director of Principles for Responsible Investment, said: "The time is now for national governments to overcome the political obstacles that prevent global carbon pricing and hinder long-term capital flows into climate mitigation and adaption."