12/12/2011
By Matt Ritchie
The Institutional Investors Group on Climate Change (IIGCC) has called on policy makers to ensure the momentum towards a legally binding carbon reduction agreement is maintained, following last week’s talks in Durban.
IIGCC is urging governments to put in place policy providing predictability and “clear market signals”.
Executive director of the group Stephanie Pfeifer said negotiators made a “significant step forward” in the just-concluded talks, through the inclusion of the United States and China in a roadmap towards legally-binding agreement over emission reductions.
The agreement also recognises the “potentially crucial” role of the private sector in making the transition to a low-carbon economy, Pfeifer said.
“For private sector capital to flow at the speed and scale required, we encourage national governments to continue to show leadership on climate change and put in place investment grade policy that provides investors with predictability and clear market signals. A significant amount of private sector capital would be unlocked if mechanisms shifted decisively the risk/return balance in favour of low carbon investments.”
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