The Institutional Investors Group on Climate Change (IIGCC), the €6 trillion forum for collaboration on climate change for European investors, has welcomed the agreement reached at the Cancun climate talks as an essential step forward for the environment and the economy.

Ole Beier Sørensen, chairman of IIGCC, said the deal is hard won, but thinks it will put the international climate process back on the agenda. “It is an important step on the road towards a global deal and reassures investors that countries are committed to developing a low carbon economy. However, the lion’s share of the investments necessary must come from private sources. Therefore, a continued public-private dialogue is critical to ensuring that the policy environment supports investment in low carbon technologies”.

Over 260 investors with more than $15 trillion in assets issued a statement prior to the UNFCCC climate conference saying that more private capital would be available for renewable energy, energy efficiency and other low carbon technologies, if stronger policies were in place.

Sørensen expressed the hope of many investors that the agreement in Cancun is a prelude of a more substantive global deal further down the road, but he also said that much still remains to be done. “Private investors and companies play a critical role in efforts to combat climate change. As policymakers work on the details of implementation, we urge them to provide long-term policy frameworks that harness and leverage private sector investment.”

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