Wealthier nations are failing to meet climate action targets, according to an ASCOR study which analyzed emissions and policies from 70 countries. No country is on track for a 1.5°C future by 2030. Investors are calling for substantial government actions, while legal threats and corporate pushback pose further challenges. Financial commitments also lag behind international climate finance goals.
Recent analysis by the Assessing Sovereign Climate-related Opportunities and Risks Project (ASCOR) reveals troubling trends regarding climate action among wealthier nations. Despite investor expectations for meaningful initiatives to combat climate change, no country is currently on track to meet the 1.5°C future based on existing national emissions targets for 2030. The report, which reviewed emissions and policy efforts from 70 countries, indicates that affluent nations are not effectively addressing their responsibilities in managing climate-related challenges.
Victoria Barron, chief sustainability officer at GIB Asset Management and co-chair of ASCOR, emphasized the critical role of investors in demanding substantial climate action from governments. She noted that “these flows require robust and tangible national climate and energy policies,” highlighting the disconnect between investor expectations and national commitments. Moreover, the report expresses concerns regarding the representation of climate risks in market valuations, prompting scholars to examine a potential climate-sovereign debt doom loop, which could have significant implications for numerous countries.
The current situation is particularly precarious in light of recent legal threats directed at nations for their perceived inaction concerning climate disasters. The International Court of Justice is slated to hold hearings soon to address these issues. The analysis also sheds light on the challenges facing the United States, where the anticipated policies of President-elect Donald Trump, including withdrawing from the Paris Agreement and appointing a leader from a fracking company to the Department of Energy, cast doubt on future climate progress.
In Europe, the prevailing corporate resistance to sustainability initiatives raises additional concerns about the commitment of policymakers to environmental goals. Despite these challenges, the ASCOR report highlights positive developments, noting that Costa Rica and Angola are among the few countries nearing their climate benchmarks. However, a mere 20% of nations have ceased approving new fossil fuel projects, and over 80% lack clear commitments to phase out fossil fuel subsidies.
Financial contributions toward climate goals are also falling short, with over 80% of affluent countries failing to meet their fair share of the $100 billion climate finance obligation, a figure which was recently increased to $300 billion at the COP29 summit in Baku. ASCOR’s findings reflect an urgent need for consistent and credible climate policies across the globe, particularly as it expands its monitoring from an initial 25 countries to a total of 70.
This article addresses the findings of a recent study conducted by the Assessing Sovereign Climate-related Opportunities and Risks Project (ASCOR) regarding the climate actions of wealthier nations. It highlights the inadequacies of national pledges for reducing emissions and the lack of progress toward limiting global temperature rise to 1.5°C. In an era of increasing investor scrutiny, the study underscores the importance of transparent and effective climate policies in mitigating both environmental risks and potential legal repercussions for nations lagging in their commitments. The article also contextualizes the current political landscape, particularly in the United States and Europe, emphasizing the resistance investors face from policymakers and corporations, which undermines sustainability initiatives. The analysis further reveals deficiencies in financial contributions toward international climate goals set at the COP summits, thereby stressing the necessity for robust governmental action to address ecological crises and foster investor confidence.
The ASCOR report reveals that despite the urgency of climate action, wealthier nations are falling short in their commitments to combat climate change, with no country on track to meet critical emissions targets. Investor pressures call for stronger national policies, but significant gaps in financial contributions and corporate resistance hinder progress. Nations must enhance accountability and transparency in their climate strategies to align with global expectations and avoid detrimental socio-economic consequences due to climate inaction.
Original Source: www.bnnbloomberg.ca
