Fro those interested in tracking sovereign climate action for investors, the Transition Pathway Initiative (TPI) & Grantham Research Institute on Climate Change & the Environment have shared the insightful 💥🌍📊 State of #Transition in #Sovereigns 2024, based on 💥ASCOR💥 framework, a public, independent, and open-source #investor #framework assessing the #climate action and alignment of #sovereign #bond issuers. Key takeaways:
🌍📊🎯Tracking Sovereign Climate Action for Investors
➡️✨ The ASCOR 2024 Report analyzes 70 countries, accounting for 85% of global emissions and 90% of #global #GDP, offering a powerful tool to align sovereign investments with the Paris Agreement 1.5°C pathway 🌡️.
🌡️ hashtag#Emissions Challenge
➡️✨ 57% of countries have reduced #emissions in the past five years.
➡️✨ Not a single country's 2030 target fully aligns with the 1.5°C benchmark or fair share allocations.
➡️✨ Only 20% of #nations align with their fair share of emissions reductions-a major gap for global #climate targets.
🔄 #Policy Gaps Persist
➡️✨ 40% of countries have passed climate framework laws, but effectiveness is hampered by slow implementation.
➡️✨ Fossil fuel phaseouts? Progress is lacking. Few nations have set deadlines or banned new fossil fuel projects 🚧.
➡️✨ Carbon pricing? Widespread (69%), but most systems lack emissions coverage or price levels sufficient to meet #climate targets.
💵 Climate Finance Shortfall
➡️✨ 81% of high-income #countries fail to meet their proportional share of the $100 billion annual international #climatefinance #goal.
➡️✨ Only 33% of #developing countries transparently cost their climate adaptation and mitigation needs, constraining critical finance flows.
🔑✨🎯 Regional Insights
➡️✨ #EU nations lead on #policy implementation, but much work remains to strengthen commitments.
➡️✨ Low-income countries often outperform in aligning #emissions trends with fair share allocations-showcasing their critical role in the #global low-carbon transition.
➡️✨ The #MiddleEast and North #Africa region continues to lag, reflecting economic dependence on #fossilfuel rents.
💡 Implications for #Investors
➡️✨ Targeted #transition finance is critical to enable developing #economies to adopt #low-carbon technologies and achieve sustainable #development goals🌱
🔑✨🎯 A Call to Action
➡️✨ Investors, policymakers, and governments must collaborate to close the emissions gap, redirect finance & build an inclusive framework for a just transition
Report attached.
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Arun Kelshiker
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