Carbon Crunch: Meeting the Cost (754 KB | 16 pages)

The briefing analyzes the most recent studies on the economics and cost of climate change, and the investment required for mitigation and adaptation. It highlights the crucial role played by the finance sector due to its influence in directing investment and financial flows, and reviews what leading financial institutions are already doing to address the climate problem, and what should be done to extend and deepen those actions across the entire sector. The briefing also emphasizes the crucial role of the policy making community in setting up the regulatory frameworks that will provide the necessary long-term investment horizons, and pave the way for further large-scale investment towards a low carbon economy.

Published: 2007 | By: UNEP FI

Declaration on Climate Change by the Financial Services Sector (53 KB | 3 pages)

On World Environment Day, 5 June 2007, a day before the start of the G8 meeting in Germany, UNEP FI launched its "Declaration on Climate Change by the Financial Services Sector". This is the first global statement on climate change by the finance sector, and over 20 CEOs from UNEP FI member companies have signed the declaration.

The essence of the declaration is a recognition by financial institutions from around the globe that anthropogenic climate change is real; the cost of inaction will be extremely high; financial institutions must take greater action and integrate climate change into their everyday decision-making; and governments need to do more, namely set ambitious, long-term targets for emissions reduction.

The statement remained open for endorsement in the run-up to the Kyoto negotiations in Bali this December. We encourage other members of UNEP FI to sign the declaration.

View the Statement (PDF: 53 KB)

UNEP Press Release (PDF: 40 KB)

Published: 2007 | By: UNEP FI

Adaptation and Vulnerability to Climate Change: The Role of the Finance Sector (576 KB | 36 pages)

The UNEP FI Climate Change Working Group report, launched at the UNFCCC COP 12 in Nairobi, calls for a new approach on part of governments and the private sector to address the physical changes that climate change will bring, integrating adaptation with sustainable economic development and disaster management.

A disturbing message is the report’s calculation that economic losses due to climate change could reach 1 trillion USD in a single year by 2040. Both the UNEP FI and Stern reports state that in order to avoid significant costs in the future early action on mitigation and adaptation is required. The UNEP FI report argues that whatever we do to cut emissions, the climate will continue to change in the coming decades, and therefore, adjusting to the expected effects of climate change is a vital complement to mitigation. This is particularly true for the poor, who have no safety net or capital; the natural world, which changes slowly; and sectors with long lead-times such as infrastructure, utilities, forestry; and institutions with lengthy liabilities like pension funds.

The report describes some of the current products and services and other innovative approaches used by the finance sector to tackle climate change, such as weather derivatives and natural catastrophe bonds. Many potential markets that could have a major impact, promote adaptation and reduce vulnerability, such as micro-finance and insurance, are not wholly commercially viable as yet, and therefore require a public-private partnership approach to provide the seed capital and skills required.

The report’s key message:

• Adaptation IS economic development -- by removing the root causes of vulnerability, such as low incomes, lack of diversity, disease, etc, enhances resilience and generates wealth;
• Adaptation is also good disaster management - small changes in design can save multiples later and pre-funding can speed recovery;
• Disaster relief is not the best way to manage risk as it is slow to arrive, hard to budget for, and vulnerability persists.

The report’s recommendation to both policymakers and financial institutions is to mainstream climate change into all levels of decision-making and company operations, and to integrate adaptation with other priorities. Finally, the knowledge and resources required for effective adaptation will not happen without the support of the private sector, and governments need to provide the policy framework and stability for business to operate more effectively in developing countries. The finance sector can play a crucial role by supplying the new markets that will be created with innovative products and services, such as weather derivatives and micro-finance.

Published: 2006 | By: UNEP FI

Global Framework for Climate Risk Disclosure (138 KB | 10 pages)

A unique global partnership of 14 leading institutional investors and other organizations, including UNEP FI, representing trillions in assets released the Global Framework for Climate Risk Disclosure to provide specific guidance to companies regarding the information they provide to investors on the financial risks posed by climate change.

Published: 2006 |

Using the Global Framework for Climate Risk Disclosure (590 KB | 19 pages)

This guide has examples of disclosure from leading corporations.

Published: 2006 |

CEO Briefing on the Future of Climate Change Policy: The Financial Sector Perspective (1.4 MB | 12 pages)

Looking at future policy, financial institutions around the world are in need of a clear and long-term policy framework.

This publication contains recommendations from the UNEP FI Climate Change Working Group to policy-makers on how international climate policy should develop up to 2012 and beyond.

Published: 2005 | By: UNEP FI

CEO Briefing on Finance for Carbon Solutions (1.3 MB | 8 pages)

This paper from the UNEP FI Climate Change Working Group (CCWG) focuses on the Clean Development Mechanism (CDM) and builds on the CCWG's work on carbon finance.

The briefing pinpoints barriers to implementation and financing of CDM projects as seen from the financial sector perspective. Recommendations on how these barriers can be overcome are provided.

Published: 2004 | By: UNEP FI

CEO Briefing on Renewable Energy (375 KB | 8 pages)

This paper presents the business case for financing renewable energy. It presents concrete examples and makes strong policy recommendations for further action.

The briefing builds on the UNEP FI Climate Change Working Group's study on climate change and the financial services sector and its review of emissions trading as a financial tool.

Published: 2004 | By: UNEP FI

CEO Briefing on Emissions Trading (200 KB | 8 pages)

This briefing from the UNEP FI Climate Change Working Group (CCWG) explores the issue of emissions trading from a financial sector perspective.

It follows up on some of the key recommendations of the CCWG study on Climate Change and the Financial Services Industry, outlining the current political developments, explaining the manner in which companies are affected, and discussing the risks and opportunities emissions trading presents. The briefing also discusses the role of financial services providers in diminishing the respective risks and creating new opportunities.

Published: 2004 | By: UNEP FI

Working Towards a Better Climate... (227 KB | 3 pages)

UNEP FI has been engaged in climate change issues since 1994. The main objective of the Climate Change Working Group (CCWG) is to engage the financial sector on the risks and opportunities climate change presents and to enable it to play a key role in delivering market solutions that mitigate its effects.

This brochure outlines the CCWG's key aims, achievements, and members.

Published: 2003 | By: UNEP FI

Sustainable Energy Finance Initiative (SEFI) (223 KB | 4 pages)

UNEP is working to create the policy and economic framework where sustainable energy can increasingly meet the global energy challenge.

This brochure introduces SEFI - a platform to provide financiers with the tools, support and networks to drive financial innovation that improves the environmental performance of the energy mix.

More details are available on the Sustainable Energy Finance Initiative website.

Published: 2003 | By: UNEP FI / UNEP Energy / Basel Agency for Sustainable Energy (BASE)

Financing Sustainable Energy Directory: A Listing of Lenders and Investors (474 KB | 127 pages)

The Financing Sustainable Energy Directory is an inventory of lenders and investors who provide finance to the renewable energy and energy efficiency sectors. It is designed to help project developers and entrepreneurs seeking capital, as well as investors looking for financing vehicles.

An online version of the directory is available at http://www.fse-directory.net/

Published: 2002 | By: UNEP FI / UNEP Energy / Basel Agency for Sustainable Energy (BASE)

CEO Briefing on Climate Change (677 KB | 8 pages)

This paper summarises the main findings of a major two-phase study on the financial services sector and climate change for corporate decision-makers at executive board level and for key government policy-makers.

The study shows why climate change is relevant to the financial services industry and explains the need for long-term, market-based, frameworks to foster finance sector participation.

Translations

French (278 KB) | German (250 KB) | Japanese (1.6 MB)

Published: 2002 | By: UNEP FI

Climate Change and the Financial Services Industry - Module 2: A Blueprint for Action (277 KB | 50 pages)

Part 2 of a two-phase study on the financial services sector and climate change commissioned by the UNEP FI Climate Change Working Group.

Part 2 examines in detail the possible future role of the finance sector in dealing with climate change, the prevailing attitudes of financial services companies in responding to the issue, the various barriers to action and the kinds of activities currently being implemented.

Published: 2002 | By: UNEP FI / Innovest Strategic Value Advisors

Climate Change and the Financial Services Industry - Module 1: Threats and Opportunities (432 KB | 36 pages)

Part 1 of a two-phase study on the financial services sector and climate change commissioned by the UNEP FI Climate Change Working Group.

Part 1 discusses the underlying reasons why climate change is relevant to the financial services industry and the need for long-term, 'beyond-Kyoto' market-based frameworks for fostering finance sector participation. The study presents an overview of the specific threats and opportunities facing the financial services industry and makes a series of strategic recommendations to policymakers and financial institutions for early action on the issue.

Published: 2002 | By: UNEP FI / Innovest Strategic Value Advisors

The GHG Indicator: UNEP Guidelines for Calculating Greenhouse Gas Emissions for Businesses and Non-Commercial Organisations (335 KB | 61 pages)

Businesses and other organisations increasingly have to account for and report on their greenhouse gas (GHG) emissions. This Guide provides a step-by-step method for the calculation of GHG emissions in order to give a single GHG Indicator for an organisation's contribution to climate change.

This indicator is applicable to companies regardless of their size and at all levels of operation. It can also be used by government agencies, non-governmental organisations (NGOs) and other bodies interested in estimating GHG emissions.

Published: 2000 | By: UNEP / Charles Thomas, Tessa Tennant and Jon Rolls

Global Climate Change: Risk to Bank Loans (2 MB | 80 pages)

“Global Climate Change: Risk to Bank Loans”, the latest publication from UNEP FI’s North American Taskforce, assesses whether climate change poses a risk to the loan portfolios of banks in Canada and the US. The report, prepared by EcoSecurities, seeks to better understand the macro impact of climate change on financial risk, and the specific debt sectors most impacted. The report also reviews strategies that can be used by companies and banks alike to reduce the impact of climate change on their businesses, and culminates in recommendations for banks and regulators stemming from the report’s risk analysis of each loan sector in the US and Canada.

Published: 2006 | By: UNEP FI