COP26 in Glasgow was yet another reminder of the existential threat climate change is to humanity. And as the takeaways emerge following the gathering, the view is that countries continue to fall short of the commitment made at COP21 in Paris in 2015 to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to preindustrial levels. No doubt, more needs to be done.
The role of the private sector was underscored at COP26. The Glasgow Financial Alliance for Net Zero, which brings together over 450 firms across 45 countries, has committed over US$130 trillion to net zero over the next three decades. Included in that commitment is defining net zero pathways for carbon-intensive industries, identifying and implementing a transition plan for decarbonization in the emerging markets.
No doubt, the need to catalyze more private capital in support of climate mitigation and adaptation in the Asia-Pacific will be critical in the coming decades. As the world’s factory, home to the two most populous economies, and experiencing rapid urbanization, Asia-Pacific’s energy consumption accounts for half of the world’s total. With 85% of the region’s consumption still coming from fossil fuels, according to the International Renewable Energy Agency, energy transition in this region presents obstacles but also plenty of opportunities in the coming years.
The Asset Events+ in association with abrdn, is pleased to be hosting a discussion forum on APAC Climate Change Progress & Obstacles in 2022. The forum will share insights on strategies investors use to differentiate their approach to net-zero portfolios across equities, fixed income, and multi-asset, identify the best performing ESG/sustainability strategies.