The world has reached a milestone in recognising the gravity of climate change, but the battle to blunt environmental destruction will be protracted and require full-throated support from the financial industry, said global asset managers, regulators and central bankers on Wednesday.
Market signals and the “greed and fear” choices that drive financial markets are not just essential to channel capital away from entrenched coal-, oil- and gas-powered economies – they are vital to change the behaviour of billions of global consumers, said participants at a three-day virtual conference co-sponsored by the Bank for International Settlement and International Monetary Fund (IMF).
“We have finally reached the long-awaited tipping point where we will have the political will needed to finally turn the tide of this crisis,” said Al Gore, the former US vice-president and chairman of Generation Investment Management, a financial services firm with US$37 billion in “sustainable” assets. “This decade is unquestionably the most important of our careers.”
Speakers at the Green Swan 2021 conference, also sponsored by Banque de France and the Network for Greening the Financial System, sought to walk a fine line.