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Tracking Sovereign Climate Action for Investors

  • 1.  Tracking Sovereign Climate Action for Investors

    Posted 27-11-2024 11:39
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    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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