Numerous banks, pension funds and major organizations have pledged to back ambitious new climate efforts in support of the U.N. Secretary-General's Climate Action Summit, which took place in New York City on Sept. 23.
Danish pension funds have agreed to funnel $50 billion into green assets over the next 10 years in support of Denmark’s goal to slash greenhouse gas emissions by 70 percent as of 2030, one of the most ambitious climate change initiatives in the world.
According to Reuters, Denmark’s prime minister Mette Frederiksen announced the initiative at a conference in New York City on Sept. 22, ahead of the summit.
The private pension funds are planning to invest in energy infrastructure, green stocks and bonds, and energy-efficient construction up to 2030.
PFA Pension, the biggest private pension provider in Denmark, will invest in offshore wind farms, photovoltaic energy, climate-friendly properties and energy storage. More than 90 other companies are also pledging to cut down on their emissions.
In addition, nine multilateral development banks (MDBs) also revealed plans to increase backing for global climate action investments to $175 billion by 2025.
Additionally, a new Climate Investment Platform was formed by the International Renewable Energy Agency, Sustainable Energy for All and the U.N. Development Program in a move to help developing countries meet climate goals. Sparked by a need to mobilize low-carbon, climate-resilient investments, the platform was formed in an effort to accelerate action and advance climate investments.
“Finance is the lynchpin to achieving Sustainable Development Goal 7 [the U.N.’s goal to ensure access to affordable, reliable, sustainable and modern energy for all] and countries’ Paris Agreement commitments. However, the evidence is clear that global investment is dramatically off track to meet universal access to energy by 2030,” said Rachel Kyte, CEO and special representative of the U.N. Secretary-General for Sustainable Energy for All. “The Climate Investment Platform will help bridge the gap between supply and demand to accelerate capital and scale up climate resilient investments, allowing countries to raise their climate targets and develop policy environments that allow investment to flow.”
