The Glasgow Financial Alliance for Net Zero (GFANZ) is a group that formed during the COP26 climate conference in Glasgow, and describes itself as "a global coalition of leading financial institutions committed to accelerating the decarbonization of the economy."
Michael Bloomberg, UN Special Envoy on Climate Ambition and Solutions, and Mark Carney, UN Special Envoy for Climate Action and Finance, are Co-Chairs of the group, while Mary Schapiro is the Vice Chair and Head of the Secretariat.
The group aims to support the goal of the Paris Agreement to limit global temperature increases to 1.5 °C and "provides the tools and resources the financial sector needs to implement its net-zero commitments."[1] The group comprises over 160 companies with more than $70 trillion of assets. Companies that join the alliance must be accredited by the UN Race to Zero campaign and must also "use science-based guidelines to reach net zero emissions, cover all emission scopes, include 2030 interim target setting, and commit to transparent reporting and accounting in line with the UN Race to Zero criteria."[2]
The Alliance also comprises existing and new net zero finance initiatives like the Net Zero Asset Managers Initiative, the UN-convened Net-Zero Asset Owner Alliance and the Net-Zero Banking Alliance.[3]
Criticismedit
In October 2022 it was reported that two pension funds, Cbus Super and Bundespensionskasse,[4] and a consulting company had left the Alliance due to new rules on membership requiring reductions in fossil fuel investments. The divisions among GFANZ members came following "heavy criticism over the lack of climate action by GFANZ’s leading members, most notably U.S. and Canadian banks and large investment managers."[5] Former US Vice President Al Gore said that “it’s become apparent that some who made impressive pledges did not immediately begin to put in place a practical plan to fulfil those pledges.”[5]
The Financial Times reported that the UN's Race to Zero "introduced tougher criteria in June, including a bar on support for new coal projects. Existing corporate members will be required to comply with the latest criteria from June next year."[6]
Following this, Bloomberg reported that GFANZ "faced possible defections from firms including JPMorgan Chase & Co., Morgan Stanley and Bank of America Corp" who were unhappy with proposed binding restrictions on fossil finance from the UN's Race to Zero group. GFANZ released a statement saying that the proposals would not bind GFANZ members, "essentially giving them the freedom to ignore such proposals", according to Bloomberg.[7][8] According to the Financial Times, Race to Zero had been "officially relegated... to the status of one adviser among many".[9]
The NGO Global Witness has stated that GFANZ does not require financial institutions to stop funding deforestation: "Despite widespread recognition of the role of forests in climate change, having a climate policy or a ‘net zero’ commitment by 2050 will not require a financial institution to stop bankrolling deforestation. In fact, they could in principle meet a Net Zero commitment – as currently defined by GFANZ – and still be funding the rampant destruction of rainforests.[10]
In November 2022, Global Witness published analysis showing that GFANZ members retained "forest-risk investments worth an estimated $8.5 billion", and had reduced their exposure to companies accused of deforestation by "a minuscule decline of just over 3%".[11]
Referencesedit
^"Glasgow Financial Alliance for Net Zero". Glasgow Financial Alliance for Net Zero. Retrieved 2022-10-24.
^"PRESS RELEASE ISSUED ON BEHALF OF THE COP25 and COP26 CLIMATE CHAMPIONS". unfccc.int. Retrieved 2022-10-24.
^"Biggest financial players back net zero". United Nations. Retrieved 2022-10-24.
^"Two pension funds quit Mark Carney's green alliance". Financial Times. 2022-09-25. Retrieved 2022-10-24.
^ abEllmen, Eugene (2022-10-03). "Cracks showing in Mark Carney's net-zero financial alliance". Corporate Knights. Retrieved 2022-10-24.
^"Two pension funds quit Mark Carney's green alliance". Financial Times. 2022-09-25. Retrieved 2022-10-24.
^"Wall Street Bankers Told They Can Set Own CO2 Terms After Spat". Bloomberg. 8 October 2022. Retrieved 2022-10-24.
^"Wall Street bankers told they can set own CO2 terms after spat". MINING.COM. Retrieved 2022-10-24.
^"COP27: Mark Carney clings to his dream of a greener finance industry". Financial Times. 2022-11-09. Retrieved 2022-11-09.
^"As the dust settles on COP26, what did it deliver for the world's forests?". Global Witness. Retrieved 2022-10-24.
^"Zero Progress? One year on from COP26, GFANZ investors remain heavily exposed to deforestation". Global Witness. Retrieved 2022-11-09.
External linksedit
Official website
This article needs additional or more specific categories. Please help out by adding categories to it so that it can be listed with similar articles.(October 2022)
April 13, 2024
gfanz, glasgow, financial, alliance, zero, group, that, formed, during, cop26, climate, conference, glasgow, describes, itself, global, coalition, leading, financial, institutions, committed, accelerating, decarbonization, economy, michael, bloomberg, special,. The Glasgow Financial Alliance for Net Zero GFANZ is a group that formed during the COP26 climate conference in Glasgow and describes itself as a global coalition of leading financial institutions committed to accelerating the decarbonization of the economy Michael Bloomberg UN Special Envoy on Climate Ambition and Solutions and Mark Carney UN Special Envoy for Climate Action and Finance are Co Chairs of the group while Mary Schapiro is the Vice Chair and Head of the Secretariat The group aims to support the goal of the Paris Agreement to limit global temperature increases to 1 5 C and provides the tools and resources the financial sector needs to implement its net zero commitments 1 The group comprises over 160 companies with more than 70 trillion of assets Companies that join the alliance must be accredited by the UN Race to Zero campaign and must also use science based guidelines to reach net zero emissions cover all emission scopes include 2030 interim target setting and commit to transparent reporting and accounting in line with the UN Race to Zero criteria 2 The Alliance also comprises existing and new net zero finance initiatives like the Net Zero Asset Managers Initiative the UN convened Net Zero Asset Owner Alliance and the Net Zero Banking Alliance 3 Criticism editIn October 2022 it was reported that two pension funds Cbus Super and Bundespensionskasse 4 and a consulting company had left the Alliance due to new rules on membership requiring reductions in fossil fuel investments The divisions among GFANZ members came following heavy criticism over the lack of climate action by GFANZ s leading members most notably U S and Canadian banks and large investment managers 5 Former US Vice President Al Gore said that it s become apparent that some who made impressive pledges did not immediately begin to put in place a practical plan to fulfil those pledges 5 The Financial Times reported that the UN s Race to Zero introduced tougher criteria in June including a bar on support for new coal projects Existing corporate members will be required to comply with the latest criteria from June next year 6 Following this Bloomberg reported that GFANZ faced possible defections from firms including JPMorgan Chase amp Co Morgan Stanley and Bank of America Corp who were unhappy with proposed binding restrictions on fossil finance from the UN s Race to Zero group GFANZ released a statement saying that the proposals would not bind GFANZ members essentially giving them the freedom to ignore such proposals according to Bloomberg 7 8 According to the Financial Times Race to Zero had been officially relegated to the status of one adviser among many 9 The NGO Global Witness has stated that GFANZ does not require financial institutions to stop funding deforestation Despite widespread recognition of the role of forests in climate change having a climate policy or a net zero commitment by 2050 will not require a financial institution to stop bankrolling deforestation In fact they could in principle meet a Net Zero commitment as currently defined by GFANZ and still be funding the rampant destruction of rainforests 10 In November 2022 Global Witness published analysis showing that GFANZ members retained forest risk investments worth an estimated 8 5 billion and had reduced their exposure to companies accused of deforestation by a minuscule decline of just over 3 11 References edit Glasgow Financial Alliance for Net Zero Glasgow Financial Alliance for Net Zero Retrieved 2022 10 24 PRESS RELEASE ISSUED ON BEHALF OF THE COP25 and COP26 CLIMATE CHAMPIONS unfccc int Retrieved 2022 10 24 Biggest financial players back net zero United Nations Retrieved 2022 10 24 Two pension funds quit Mark Carney s green alliance Financial Times 2022 09 25 Retrieved 2022 10 24 a b Ellmen Eugene 2022 10 03 Cracks showing in Mark Carney s net zero financial alliance Corporate Knights Retrieved 2022 10 24 Two pension funds quit Mark Carney s green alliance Financial Times 2022 09 25 Retrieved 2022 10 24 Wall Street Bankers Told They Can Set Own CO2 Terms After Spat Bloomberg 8 October 2022 Retrieved 2022 10 24 Wall Street bankers told they can set own CO2 terms after spat MINING COM Retrieved 2022 10 24 COP27 Mark Carney clings to his dream of a greener finance industry Financial Times 2022 11 09 Retrieved 2022 11 09 As the dust settles on COP26 what did it deliver for the world s forests Global Witness Retrieved 2022 10 24 Zero Progress One year on from COP26 GFANZ investors remain heavily exposed to deforestation Global Witness Retrieved 2022 11 09 External links editOfficial websiteThis article needs additional or more specific categories Please help out by adding categories to it so that it can be listed with similar articles October 2022 Retrieved from https en wikipedia org w index php title GFANZ amp oldid 1194251554, wikipedia, wiki, book, books, library,
