Dozens of countries urge investors to halt fossil fuel investments
A coalition of government officials in nearly two dozen countries has called for a rapid end of fossil fuel investments, piling further pressure on asset owners and other investment actors to wind down any cash flows towards dirty energy.
The group, consisting of climate ministers, secretaries and other policymakers, emphasized in a public letter the importance of limiting global warming to 1.5 degrees Celsius to avoid the "devastating" consequences of exceeding this limit.
They urge investors to transition away from fossil fuel investments to significantly decrease greenhouse gas emissions by 2030.
The group stressed the need for systemic transformations in all sectors, with a focus on phasing out fossil fuels and prioritizing renewable energy and energy efficiency.
Financial reforms
The open letter, which comes ahead of COP28 later this year, called for financial reforms and alignment of investments with climate goals.
The group concluded by inviting investors to join efforts in combating climate change.
The statement was issued by various government officials from Austria, Chile, Colombia, Denmark, Ethiopia, the European Commission, the Federated States of Micronesia, France, Germany, Ireland, the Netherlands, New Zealand, Palau, the Republic of the Marshall Islands, Samoa, Senegal, Spain, and the Republic of Vanuatu.
The world's largest emitters - the US, Brazil, China and India - did not sign the letter.
Pressure on investors
The public statement comes only days after a group of NGOs called on asset owners in the US and Europe to step up their efforts to pressure asset managers into abandoning fossil fuels.
The groups urged pension funds, insurance companies and other institutional investors to force asset managers to "urgently strengthen their policies."
The coalition warned that thirty of the largest asset managers in Europe and the US do not block or drop companies in their portfolios as they roll out new fossil fuel projects, with BlackRock and Vanguard providing 58% of the recent investments in this space.
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