Contact us
search
menu
Arrow Left Arrow Right

Climate Week NYC | Day three wrap up

September 26, 2024

Summary 

Buzz around Climate Week NYC continues with reports that the event has seen the most attendees in its 16-year history. A rhetoric accompanied by criticism of the perceived lacklustre approach from business to climate action, outside of events such as this. 

The Planetary Guardian’s initiative published its first “planetary health check”, a report quantifying the impacts of human activity on the environment and associated risks. The initiative was set up last year with funding from Richard Branson and built on research by esteemed climate scientist, Johan Rockström. 

The report made for uncomfortable reading, revealing that 6 out of 9 planetary boundaries have been broken. The gap between what the private sector is doing, and what the science suggests, “should disappear” in an efficient market system, said Hiro Mizuno. “But at the moment, that’s not what’s happening.” 

Yesterday was the first ever dedicated “Voluntary Carbon Market (VCM) Day”, where some of the biggest names from governments, multi-laterals, NGOs, and the private sector gathered to discuss how to best deliver and scale high-integrity carbon markets. 

In a series of sessions, speakers expressed why carbon credits must be regarded as a core part of climate action – an argument backed by the likes of Treasury Secretary Janet Yellen and former Bank of England Governor Mark Carney.

VCM, VCM, VCM…

Hosted jointly by the Integrity Council (ICVCM), the Voluntary Carbon Markets Integrity Initiative (VCMI), and Bloomberg’s Global Carbon Markets Utility (GCMU), here are the highlights from Climate Week’s VCM Day yesterday. 

The GCMU’S Chris Canavan shared his thoughts on the need to design the rails to carry the finance delivered through carbon markets, highlighting the importance for standards to be baked in, and for infrastructure to stand-up to the demands of regulators. 

We heard from mutli-laterals including Axel van Trotsenburg from the World Bank, and Inger Anderson at UNEP. The focus was on how to rebuild trust, the importance of including the voices of the communities involved in the dialogue and proceeds sharing in carbon markets. Onel Masardule, Guna indigenous leader from Panama highlighted the importance of safeguarding the rights, benefits and returns for local communities in high-integrity carbon markets.  

Wally Adeyemo, United States Deputy Secretary of the Treasury spoke about America’s track record in building and scaling markets. He pointed out the need to ensure that the energy transition needs to bring in opportunities for people, the economy and the planet. 

Tariye Gbadegesin, CEO of the Climate Investment Funds spoke in a fireside chat with Bill Winters, CEO of Standard Chartered and VCMI co-chair and the newly appointed UK’s Climate Envoy Rachel Kyte about the important role that carbon finance plays alongside other forms of finance.  

And finally we listened to Mark Carney, Co-Chair of GFANZ and UN Special Envoy for Climate Action and Finance, who talked about the importance of locally anchored, but globally connected markets.

Emerging Markets and Human Rights

Another key point of interest on day three was the emphasis on emerging markets. 

Speakers from various industries noted that 85% of the world’s population resides in these economies, and their success in transitioning to low-carbon systems is critical. 

Investment leaders highlighted the challenges of mobilising capital for clean energy in these regions but emphasised the considerable opportunity for long-term returns through sustainable finance. Financial actors were encouraged to engage more deeply with these markets to drive climate resilience and decarbonisation.

Simon Steill, Executive Secretary, UNFCCC, told investors at an event in New York that wealthy nations are benefiting from clean energy growth but progress is uneven and investors are missing out on “gigantic, unrealised opportunities” outside of wealthy countries. This also poses a major threat to global climate action. 

At the Ford Foundation Center for Social Justice, leaders from civil society, government, and the private sector stressed the importance of community empowerment in renewable energy expansion. Ensuring that climate policies respect human rights was a major theme, with companies encouraged to strengthen their human rights commitments as they pursue net-zero goals​. 

Institutional Investors announce Emissions Cuts 

On Wednesday, members of the Net-Zero Asset Owners Alliance unveiled how much they have trimmed their greenhouse gas emissions. In 2023, the group’s financed emissions were 31 per cent lower than in 2018, according to its report.

In the context of an increasing number of large asset managers bailing on their net zero commitments in recent years, members of Net-Zero Asset Owner Alliance have increased investments into “climate solutions” to 6% of their portfolios, amounting to $555bn in the past year. Other asset managers have left Climate Action 100+, which was launched in 2017 to push companies to reduce their carbon footprints. According to the FT, these firms and others that departed were facing significant pushback to climate initiatives from US Republicans and oil companies.

Looming Geopolitics

Coinciding with Climate Week, the U.N. General Assembly’s annual meeting in New York has been described by Bloomberg as a “tragedy” due to the weight of conflicts in the Middle-East, Ukraine and Sudan. As the world is devastated by the most violent conflicts since 1945, António Guterres admitted that the secretary-general of the UN has no power, just a voice. Augusta Saravia of Bloomberg remarked that “the UN Charter’s call for people to ‘practice tolerance and live together in peace’ has rarely looked more forlorn.”

Divisive US politics around climate change has been an obvious theme all week, and one that will continue in the lead up to COP29 in Baku, which will be overshadowed by the US election held just six days earlier. The impact of the election outcome on climate action will be monumental, demonstrated by opposing democrat vs.republican views at Climate Week. 

In contrast to Biden’s address on Tuesday, Kevin D.Roberts, president of the right-wing Heritage Foundation, spoke at the New York Times Climate Forward event on Wednesday. He dismissed scientific consensus that humans are warming the planet, saying “it sounds like weather to me, a hot year”. The Heritage Foundation published the controversial policy blueprint for the next Republican administration known as “Project 2025”.  Biden’s climate advisor, Ali Zaidi, proceeded to slam Project 2025 and Roberts’ comments. 

Soundbites 

“VCMs have the potential to create both economic and climate opportunities by channelling private capital to high-impact and cost-effective climate projects across technologies, ecosystems and geographies,” US Deputy Treasury Secretary Wally Adeyemo said. “There’s no question that we have much more work to do. We at Treasury look forward to continuing to work with counterparts across our government, civil society organizations, the private sector, and international partners.”

[About the VCM] “If you don’t get the billions and billions and billions put to work, we’re simply not going to make the impact that we know we have to have to make,” he said. “Let’s see this as a market that’s enabling.” Standard Chartered Plc CEO Bill Winters. 

“Women understand climate risks and the consequences on their families and communities. We know that we don’t have time to wait, that action is needed today, and we are rolling up our sleeves and getting on with the job”, said Maria Mendiluce, CEO, We Mean Business Coalition. “This is why women leaders are asking governments for more climate ambition, concrete action plans with milestones and much more coherence in the way they implement them. Together we can make change happen at the speed that is required to limit global warming and keep 1.5 in sight.”

“I’m watching with bated breath the discussion around 1.5C… The world needs to be realistic about the challenges to closing that gap, what it would take, and who can help deliver,” said Heather Zichal, Global Head of Sustainability at JPMorgan Chase & Co. “We don’t have all the answers to that question, but we do know everyone has a role. There are a lot of things that we, as a bank, can control, but there are things that we can’t…We’re focused on what we can control—facilitating capital.”

Useful Articles/ Sources  

Climate Week NYC

Other relevant news 

Looking Ahead: Day 4 Themes

Today, Keir Starmer is set to meet Donald Trump in New York before delivering a speech to world leaders at the U.N. General Assembly. The UK Prime Minister will use tonight’s address to assert that UK is returning to “responsible global leadership” because it is in British interests to address problems around the world.

Day four will offer insights into how capital markets and financial products can support the global transition to net-zero emissions. Discussions will offer actionable strategies to integrate sustainability into portfolios, with a focus on both mitigating risks and seizing opportunities in renewable energy and decarbonisation.

Highlight sessions today include a Ceres event on private sector alignment with the Paris Agreement and the Transition Finance Market Review (TFMR) panel discussions in partnership with A&O Shearman.

As Climate Week heads toward its conclusion, Thursday’s agenda reflects the growing urgency for collaborative, cross-sector solutions to achieve climate goals. 

Stay tuned for more updates and insights!