Governments, banks, businesses: now we need a green alliance

This week I was invited to speak at two major global meetings: the G20 Summit in Rome and the COP26 meeting in Scotland. My message to both of us is the same. There is no more pressing problem than the future health of our planet and the people who inhabit it. His health today will determine the health, happiness and economic prosperity of generations to come. This must surely be our goal. I have always felt that we have an overwhelming responsibility towards those unborn generations. Fortunately, after nearly fifty years of trying to raise awareness of the growing climate and environmental crisis, I am finally feeling a change in attitude. The idea of ​​a necessary urgent and real action on the ground now seems much more widely accepted. I spent most of those fifty years listening to a large number of people. I learned from experts around the world who have dedicated their lives to tackling climate change. I have listened closely to the leaders of many countries, especially the Commonwealth nations, whose communities are among the most vulnerable to the climate on Earth, and I have found it impossible not to listen to the desperate voices of the young people who care about the world that they will inherit from. current generation of stewards of their planet. And I listened to private sector leaders, increasingly eager to invest in innovative projects and new technologies that will help create the necessary, rapid transition to sustainability and ensure a cleaner, safer, healthier planet for all. For me, the private sector holds the key. I’m not sure we’re listening to them enough … Almost two years ago, I founded my own sustainable markets initiative which is now joined by some 300 of the world‘s best CEOs from every sector of the economy. I have found how extremely sensitive they are to the way their clients and investors are now demanding changes in the way companies behave. Their customers are a powerful lobby. After all, consumers control more than sixty percent of the world‘s GDP. To give just one example, today at the G20 I will be joined by the main exponents of the fashion industry who will launch a new digital identity card for clothes, to let people know how products are designed, manufactured and distributed. It is an example of the commitment that companies want to show; the type of investment that only they can provide. They believe, like me, that their customers have a right to know that what they buy has been created in a sustainable way and that they will make future choices on this basis. Why is this type of private investment important? If we are to meet the vital climate goal of 1.5 degrees – a goal that will save our forests and farms, our oceans and wildlife – we need trillions of dollars in investment every year to create the new infrastructure needed to transition to. sustainability. Governments alone cannot collect this kind of money. But the private sector can do this by working closely with governments and civil society. What needs to happen, then, to overcome the barriers and unlock these opportunities? First, companies around the world tell me they need clear market signals from governments so they can plan for the long term. This would strengthen confidence in existing projects and attract the necessary institutional investments for new ones. At present, there are too few ready-made projects for investment in the pipeline, because there is too little confidence in the system. For this to happen it is necessary to align the roadmaps of countries, industries and investments. In this instance, multilateral development banks have a key role to play in creating an investment-friendly environment that supports a sustainable future. The second thing they need is correcting the mismatches between institutional, regulatory and legal frameworks, which prevent projects from appearing profitable enough for both their investors and their guarantors, the multilateral development banks. Large-scale solutions only seem possible if there is a much closer partnership between the government, major multilateral banks, the private sector and its investors. Finally, business leaders tell me that, beyond multilateral development banks, there is an urgent need to explore how the G20 can develop a mechanism for providing sovereign risk guarantees, which would help free up the large sums. of money needed to make this public / private partnership a reality. And this, in turn, is our only hope if we want to keep global warming within 1.5 degrees. Finally, there is a broad global consensus that we are facing a formidable threat to the future of humanity and nature itself, and that we must now translate beautiful words into even more beautiful actions. Surely, if we can put the differences aside, we could see this as a unique opportunity to initiate a substantial green recovery for the benefit of all. It could be the growth story of our time, establishing a global economy that follows a safe, sustainable trajectory and thus saves our planet. –