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Tools for scaling green finance and net-zero sector coalitions: CEOs present climate initiatives to world leaders at G7

EY, HSBC and Heathrow Airport are among the 300 businesses presenting three new solutions to help the private sector play its role in tackling the climate crisis to G7 leaders on Friday (11 June).

The main G7 Summit will take place between 11-13 June in Carbis Bay, Cornwall, with business meetings on day one

The main G7 Summit will take place between 11-13 June in Carbis Bay, Cornwall, with business meetings on day one

Convened by Prince Charles’ Sustainable Markets Initiative (SMI), the cohort of businesses will present three new initiatives to UK Energy Secretary Kwasi Kwarteng and US Special Envoy for Climate John Kerry at the G7 business meeting in Cornwall. This will be the first time any of the schemes has been revealed to the public.

The first initiative is an investment pipeline tool co-developed by the world’s four largest accountancy firms. The tool enables users to compare the investment pipeline for specific green technologies and sustainability-related projects. Governments could use this information to close financing gaps and to identify which opportunities are most attractive to which private sector actors.

A suite of ‘market signals’ – metrics that governments can use to track and encourage private investments into sectors that assist the low-carbon transition and/or are beneficial to nature – has been developed to complement the investment pipeline tool. It is hoped that this will help governments promote fast-growing sectors and technologies, while also providing support to those that are not faring as per predictions. There will now be consultation with Ministers and other experts before a final set of market signals is agreed.

The third and final initiative falls under the Prince of Wales’ Terra Carta commitment. Translating to ‘earth charter’ and launched in January 2021, the Terra Carta requires businesses to do all they can to play their part in the delivery of a just global transition to net-zero by 2050 at the latest. It also includes commitments on worker rights, future-ready skills and nature.

Signatories of the Terra Carta should, it has been proposed, contribute to at least one of ten new ‘transition coalitions’ as well as the commitment’s overarching vision. Coalitions will be launched on energy; road transport; aviation; shipping; fashion and textiles; health systems; waste management; plastics and chemicals; technology and natural capital. Each coalition will begin work ahead of COP26 and will focus on assessing how sustainable investment can be scaled to deliver low-carbon “transformations” in their respective sectors.

The SMI has stated that the new coalitions will work with existing global initiatives working to accelerate the low-carbon transition and the drive to prevent Earth’s sixth mass extinction in a just and intersectional manner. As such, they are intended to collaborate rather than to compete.

The meeting at which the initiatives will be presented will take place at the G7 summit in Cornwall on Friday (11 June). There, the Prince of Wales will say: “We have a potentially game-changing opportunity to drive forward the partnerships between government, business and private sector finance that are absolutely vital if we are to win the battle to combat climate change and biodiversity loss…unless we deploy private-sector resource, innovation and finance more effectively, we just don’t stand a chance.”

UK Prime Minister Boris Johnson and French President Emmanuel Macron have already signalled their support for the initiatives.

The news from the SMI comes on the same day that an alliance of more than 70 chief executives and a group of investors collectively representing $41trn worth of assets have written to world leaders to voice their support of bolder climate policies.

To find out more about the climate-related discussions that have already happened at pre-G7 events and the potential sustainability-related outcomes of the main talks beginning on Friday, read edie’s explainer article.

Sarah George

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