New Initiative to Finance Climate Action on a Global Scale

Given below is a video of a draft of a new presentation:

To jump to specific section of the above video, you can click one of the links below:

00:00 Introduction
00:18 Video: The Production Gap: 2020 Special Report”
02:01 Intro: Impacts of Climate Change on Human Security and Climate Solutions
02:12 Video: Impacts of Climate Change on Human Security and Climate Solutions
06:14 Need for a Way to Finance Climate Action on a Global Scale
06:52 Video: Steve Waygood’s Concern about the LSE’s Embedded Warming Potential
09:04 Segment from Aviva Video: “Do you know how your pension is invested?“
09:19 Aviva Video: “Do you know how your pension is invested?“
11:38 Introducing the GPFA and IPCF
11:48 Video: Introducing the GPFA and IPCF
13:56 Key Feature of the Proposed Glasgow Private Finance Accord (GPFA)
14:13 By signing the proposed GPFA, FIs would commit to…
15:11 GPFA to Establish the IPCF
15:54 Agreement on Int. Carbon Trading is Needed
16:21 Invitation to Take Action
17:40 Thank you & For more info, see: https://climatesan.org/fca

Given below are associated links to the video shown above about “New Initiative to Finance Climate Action on a Global Scale”:

1) Slideshow Presentation Script: narration script.

2) A short (< 2-min.) video “The Production Gap: 2020 Special Report” by the Stockholm Environment Institute illustrates the need for large scale climate action now.

3) A short (<2-min.) video about the impacts of climate change on human security: LINK

4) A short (<2-min.) video that illustrates Climate Solutions That Can Be Implemented on a Global Scale.

5) A 6-min. video about “Climate: Security Solutions and Finance (CSSF)”, which introduces the both the GPFA and the IPCF (see below for details about GPFA and IPCF).

6) Video segment about Steve Waygood’s (Aviva Investors) Concern about the London Stock Exchange Embedded Warming Potential: LINK

7) Aviva video: “Do you know how your pension is invested?

a) What is the Glasgow Climate Private Finance Accord?

A Glasgow Climate Private Finance Accord would ask participating financial institutions (FIs) to collectively demonstrate their commitment to aligning their business models to Paris, and ask those companies they finance to do the same. By signing the Accord, FIs would commit to:

      •  Align their business model to the aim of the Paris Agreement – doing what they can to help restrict climate change to below 1.5 degrees of warming;
      • Use their influence with other FIs, companies and governments to urge alignment to the Paris Agreement (including signing the Accord where appropriate);
      • Publish a Transition Plan [aka Institutionally Determined Commitment (IDC)] setting out how they will do 1 & 2 above, including short/ medium term objectives and a credible trajectory;
      • Analyse and annually disclose:
        • the impact of climate-related risks on their business (following TCFD approach)
        • their progress against their IDC and any increase in ambition
        • their investment appetite for blended finance pools, ie: what kind of investment instruments, which asset classes and currencies, whether insurance is required, minimum deal size, quantum available and a point of contact.
      • Revise, update and increase ambition for their IDC every three years.
  • b) The Accord will establish an International Climate Finance Platform (IPCF) The IPCF will host Annual meetings of signatories at future COPs, where it will publish an annual Status Report. The IPCF will also administer the signatories to the Accord; maintain the IDC reporting guidance; monitor the commitments; and, act as a central on-line repository of the IDCs. Where IDCs are considered exceptional, the IPCF will issue an award. Where FIs neglect to publish their IDC, the IPCF will eject them. It will also maintain an on-line register highlighting which key FIs have not yet signed in order to facilitate and focus investor engagement. In due course, it is likely that free public league tables ranking FI transition performance will emerge. The World Benchmarking Alliance has indicated interest. However, this would be conducted independently of the IPCF proposition.

9) For the GPFA and IPCF to make a substantial impact and incentivize the markets to support the Paris Agreement, I believe that an agreement on global carbon emissions trading (part of Article 6 of the Paris Agreement) is needed.  Therefore, I think a global advocacy effort to support the adoption of the GPFA by the Parties at COP26 should also include creating awareness for the urgent need to agreement on global carbon emissions trading at COP26.  For more information about Article 6 fo the Paris agreement, see: Article 6 Stocktaking and Lessons Learned Ahead Of Cop26 (Article 6 of the Paris Agreement includes tools to encourage countries to meet their climate commitments and increase ambition through international cooperation such as market-based approaches.)

10) Invitation to Take Action:

a) Learn more about the GPFA along with the associated IPCF and how it can create many benefits for the world including facilitating funding for a wide range of climate actions.

b) If you support the GPFA and its associated IPCF, we invite you do the following:

    • Consider how these initiatives can be further enhanced and provide feedback to the Coalition for the IPCF;
    • Create more awareness about the GPFA and its associated IPCF. This could include helping to host a webinar about these topics with Aviva Investors and ClimateSAN.
    • Help broaden support for GPFA by reaching out to conservative minded people about need for GPFA in these two key areas:

c) The Coalition for IPCF plans to invite the Parties at COP26 to consider adopting the GPFA. Therefore, they welcome your feedback and any efforts to help them build support for these initiatives.
d) Create more awareness of the need for an agreement on International Carbon Emissions Trading (part of Article 6 of the Paris Agreement) by the Parties at COP26.

11) Given below is an outline of a proposed example online event to create awareness about how the private financial markets are currently incentivized to undermine the Paris Agreement and how the proposed GPFA, along with its associated IPCF, would be an effective mechanism to change these incentives so that the markets would support this Paris Agreement.  

a) ClimateSAN and ClimateFast could invite organizations in Canada focused on sustainable finance such as Corporate Knights and Institute for Sustainable Finance to discuss how the private financial markets are currently incentivized to undermine the Paris Agreement and how the proposed GPFA would be an effective mechanism to change these incentives so that the markets would support this Paris Agreement.  

These organizations would be invited to work together to host an online event to outline these issues and introduce the proposed GPFA along with its associated IPCF to the Canadian public.  This event could include the following speakers:

i) Moderated by Diana Fox Carney (She has moderated several webinars for Corporate Knights including this one:  “Building Back Better with a Green Recovery: Moving Forward Together.”).

ii) Dr. Ryan Riordan, Director of Research, Institute for Sustainable Finance, SSB speaks about their report entitled “Capital Mobilization Plan for a Canadian Low Carbon Economy”. 

iii) Toby Heaps from Corporate Knights speaks about their efforts to facilitate a green economic recovery in Canada.

iv) Someone from the Task Force for a Resilient Recovery speaks about their work to facilitate a resilient economic recovery in Canada.

v) A finance expert explains how the current financial markets undermine the Paris Agreement.  This expert also explains the need for a way to raise the money from the [financial] system and deploy it “in a way that ensures that the markets support the Paris Agreement rather than undermine it.”

vi) Steve Waygood introduces the planned GPFA along with its associated the IPCF and how it can help Canada meet its commitments to the Paris Accord.

c) To broaden support for GPFA, a special effort could be make to reach out to conservative minded people about need for GPFA based on two key areas:

i) Human Security. For example, see this short two min intro video: “Impacts of Climate Change on Human Security: What Can be done?

ii) Financial impact on their savings and financial markets:  For example, this video entitled “Our Planet: Too Big To Fail”, which is a 42 minute film that explores the risks of inaction, the impact of investing-as-usual, and the role the finance sector can play in powering a sustainable future.  To view a short <1 min. trailer video about the full movie, see: Our Planet: Too Big To Fail Trailer

12) ClimateSAN and Aviva Investors plan to create a video to illustrate the need for and an outline of a global financial agreement to enable the financing of climate solutions on a global scale.  To view information about it, see: Introducing the Glasgow Private Finance Accord (GPFA)

13) Given below is a video about the financial implications of inadequate action on climate change:

a) Video: Our Planet: Too Big To Fail – Our economy is fundamentally underpinned by the stability and the resilience of the natural world. But this stability is no longer guaranteed. Our Planet: Too Big To Fail is a 42 minute film that explores the risks of inaction, the impact of investing-as-usual, and the role the finance sector can play in powering a sustainable future.

14) Supplemental Information:

The GPFA and IPCF can support UNDP’s New Carbon Payments for Development (CP4D) facility.  This facility is designed to incentivize private investments into countries’ NDC targets and development objectives.  It is currently planned to be about $300 million in size but can be scaled up substantially when global carbon credit trading is implemented.  Larger individual projects can be financed initially by a bridge loan, and then, once the project is operational, it can be financed by a Green (or Climate) Bond, which can be purchased by international institutional investors.  Green Bonds are growing rapidly.  For example, ClimateBonds.net estimates that there will be about $350 billion worth of these types of financings this year.