June 25, 2021

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Climate: New Zealand wants to force the financial sector to assess its impact on climate

On April 14, 2021 9:05 am

New Zealand is one of the few countries Included in its frame A “zero carbon” goal by 2050. But over the past three decades, its greenhouse gas emissions have increased by more than a quarter, and a recent annual report shows that they have not.

In response, the New Zealand government announced “urgent measures” to change the situation. This Tuesday’s “New Zealand Herald”, Daily with the largest circulation in the country.

A pioneering law in the world was put forward: Banks, insurers and investment managers will be obliged to report the impact of their activities on global warming.

About 200 large companies in the country were involved

Banks and insurers with a net worth of more than NZ billion ($ 590 million) and issuers of equities and securities listed on the country’s stock exchange must complete these announcements. Details Reuters. About 200 of the country’s largest companies and several foreign companies will be subject to the law.

“We will not be able to achieve our goal of carbon neutrality by 2050 unless the financial sector is aware of the impact of its investments on climate,” James Shaw said in a statement. “This law will place climate risks and setbacks at the center of financial and business decision-making.”

The bill is expected to be introduced in parliament and passed the first reading this week, explaining how financial institutions will manage the risks and opportunities associated with climate change. Once the law is passed, climate reports will be required for fiscal years beginning next year.

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Methane is forgotten by the “zero carbon” law

No state law comparable to the law issued in Europe and New Zealand has been passed. But still Pressure is mounting in the banking sector Regarding climate risk. Banks and other financial institutions are expected to disclose the climate risks of their various portfolios next year. In addition, in France, the major banks Everyone has updated their strategy Coal production.

New Zealand stood out with several index climate announcements – and the like Declare a weather emergency Or produce 100% renewable energy by 2035 – these promises are struggling to turn into short-term political action.

In particular, the government decided not to add methane to its “zero carbon” purpose. The emission of this gas, Descendants of agriculture, The essential sector of the New Zealand economy is expected to fall by only 24% to 47%. As Climate action tracker indicates, It classifies the country as “not enough” based on climate efforts, although methane accounts for more than 40% of New Zealand’s emissions.