From the G7 Summit to COP26
Ahead of crucial meetings at G20 and COP26, HRH The Prince of Wales and his Sustainable Markets Initiative today announce a suite of initiatives to unlock and accelerate the momentum towards a sustainable future.
Initiatives include reports on three key aspects of accelerating the provision of private sector finance for sustainable projects, new SMI partnerships, and a digital hub showcasing global projects across multiple sectors.
HRH to host world and business leaders at G20 and COP26
Earlier this year HRH The Prince of Wales brought private sector leaders to the G7 Summit, for the first time ever, to discuss climate action. He will host world and business leaders at the upcoming G20 and COP26 meetings to encourage public and private sector collaboration to unlock trillions of dollars to help transition to a sustainable economy.
To support these discussions, the SMI is today announcing a series of initiatives which aim to scale the flow of investment from the private sector and to encourage needed action from governments to enable investment flows across all industries and across all countries.
HRH The Prince of Wales has long argued that unprecedented levels of carefully targeted investment are needed to tackle climate change and to protect Nature. The initiatives announced today aim to unlock access to the annual $4 trillion dollars of investment needed to keep the 2015 1.5C goal alive.
The initiatives being announced below focus on reimagining public private partnerships and blended finance.
HRH The Prince of Wales
Only the private sector has the trillions of dollars of finance available which we will need to create the necessary new infrastructure and meet the vital 1.5 degree climate target that will save our forests and farms, our oceans and our wildlife. What today’s announcement shows is that over the last two years the 300 CEOs who are part of the Sustainable Markets Initiative have not just talked about these issues, but have taken action. As we approach COP26 they have earned a seat at this most important table so that we can tackle the environmental crisis in partnership
Brian Moynihan, Co-Chair of the SMI and Chairman and CEO of Bank of America
The SMI is a 'coalition of the willing’ of committed business leaders mobilizing the resources needed to achieve net zero goals and drive the transition to a low carbon economy. The initiatives and partnerships announced today will help scale our efforts and accelerate our progress
HRH The Prince of Wales Initiatives to support Planet and Nature
A Review of Market Signals
A Review of Market Signals which has identified the critical actions governments can take immediately to unlock investment and accelerate results. These are:
Committing to net-zero sectoral mandates, for example mandating the end of coal in power generation in advanced economies by 2030 and in all countries by 2040; mandating zero-emissions vehicles are 100% of new car sales by 2035, and mandating 10% Sustainable Aviation Fuel by 2030.
Increasing investment in zero-carbon innovation and technology in the deployment of green hydrogen and carbon, capture and storage and allocating sufficient R&D budgets to advance breakthrough technologies such as nuclear fusion.
Establishing effective carbon markets by putting a meaningful price on carbon and embracing business and consumer voluntary offsetting.
Multilateral Development Banks (MDBs)
A white paper aimed at seizing the ‘New Bretton Woods Moment” which outlines how we need to rethink our systems and create new mechanisms for public-private collaboration to help increase the flow of private sector financing in support of country ambitions around climate and the green economy. Having convened the major MDBs in September, HRH and the SMI have formed an Expert-Level Task Force to find ways to unlock the investment pipeline with a focus on accelerating results on the ground.
New Ways to Scale Private Sector Investment
Launch of the SMI Project Development Tool, now available on the SMI website: This open-source tool allows countries, cities and local private sector initiators to conduct an early assessment of project attractiveness to and readiness for private sector financing.
Publication of an updated Scaling Private Sector Investment Report which focuses on unlocking the investment-to investables pipeline particularly in emerging markets. This is a follow-up to the interim report launched at the G7 commissioned by the SMI with contributions from four accounting firms, Deloitte, EY, KPMG, and PwC, supported by BCG. It recommends the creation of a global virtual network of Project Delivery Units (PDUs) to augment the capacity of individual, in country PDUs by sharing best practice through the development of an open source ‘hub’ of knowledge including trainings and learnings within each sector to help address local knowledge gaps and connect projects with to knowledge partners, financial institutions and global peers.
Launch of the Terra Carta X-Change: An interactive digital hub on the SMI website, showcasing impactful sustainability projects across the globe, including a number of Earthshot Prize nominees, which are aligned with the ambition set out in the Terra Carta. The hub also showcases the range of insurance products in place to support sustainable projects across all sectors and in all regions of the world.
Collaboration Partnership with the Task Force for Nature-Related Financial Disclosures (TNFD): The aim of this partnership is to jointly amplify the aims of Terra Carta to putting Nature at the heart of financial disclosures and those of the recently-established Task Force which will encourage all actors to develop Nature-related reporting as a standard across the private sector.
SMI Industry and Sector Task Forces Updates
Throughout 2021 and particularly in the lead up to COP26 the SMI Industry and Sector Coalitions and Task Forces have been exploring the game changing actions needed to accelerate progress across industries.
These Task Forces and Industry Coalitions will meet, alongside other key business leaders, to continue the work already underway, during COP26.
Asset Managers and Asset Owners Task Force Updates
Asset Owner Practitioner's Guide: Net Zero Allocation
The members of the Net-Zero Asset Allocation Working Group, working on behalf of the SMI Asset Manager & Asset Owner Task Force, propose a framework of principles and best practises dedicated to all types of asset owners to include climate change and net-zero considerations in portfolio construction.
Investor Expectations for Shipping Transition to Net Zero Emissions
Climate risk is investment risk. As investors continue to orient their asset stewardship programs to reflect this reality, hard-to-abate sectors each present their own stewardship and engagement challenges. This document work lays out considerations investors can take into account when engaging with companies in their portfolios engaged across the shipping industry to support to transition of this sector to net zero. The Task Force looks forward to continuing this work across hard-to-abate industries.
Carbon Capture Use and Storage Task Force Updates
The members of the CCUS Taskforce propose a new framework for carbon reporting and policy instruments that aims to create and mobilise demand for CO2 abatement and removal services as an enabler to net zero. This introduces the concept of a new asset class - Carbon Storage Unit (CSU), that allows the benefits of storing CO2 to be attributed appropriately and uniquely to those activities which can drive to Net Zero. The framework also introduces the concept of a Carbon Storage Obligation (CSO) and how it can be implemented.
Financial Services Task Force Updates
Coalition of Banks Launches Guide for Industry's Transition to Net Zero
The Prince of Wales’ Financial Services Task Force (FSTF) launches a Net Zero Practitioner’s Guide to help the banking industry adopt a consistent and transparent approach to supporting clients’ transition to net zero. The FSTF Practitioner’s Guide combines the knowledge and collective experience of 11 banks. The guide is designed to support the implementation of banks’ net zero commitments and meet the growing need for specificity.
The Role of Banks in Catalyzing the Voluntary Carbon Markets
Members of HRH’s Prince of Wales Financial Services Task Force (FSTF) today signal their collective support for the role of voluntary carbon credits as a critical tool to achieve a Net Zero economy.
In a paper published today, the taskforce announced its support for increasing investment and financing in activities that generate high quality carbon credits, as well as advocating their use as part of their clients’ science-aligned Net Zero strategies, where there are limited technologically or financially viable options to abate. This will involve working alongside and supporting existing initiatives such as the Taskforce on Scaling Voluntary Carbon Markets (TSVCM) and other industry initiatives.
Open letter of support – FAST-Infra label consultation
22 July 2021: The Sustainable Markets Initiative announces its strategic partnership with a new scheme, developed by the ‘FAST-Infra’ initiative (Finance to Accelerate the Sustainable Transition): designed to help close the trillion-dollar sustainable infrastructure gap. It is a priority workstream within the SMI’s Financial Services Task Force (alongside the Taskforce champions from the Asset Managers & Asset Owners and Insurance Taskforces).
Global Farm Metric Task Force Updates
Global Farm Metric (GFM) Framework
The Global Farm Metric (GFM) is a framework that uses a single set of categories, indicators and measures to assess whole-farm sustainability. Drawing on environmental, social and economic data from the farm, it can be applied to all farming systems and landscapes across the globe to establish a baseline of data and create a common language for all stakeholders in the food and farming sector. By doing so, it enables collective action and positive change by empowering farmers, governments, food business, the finance industry and citizens [to reduce negative impacts and invest more sustainably].
Hydrogen Task Force Updates
The World Business Council for Sustainable Development (WBCSD) and The Sustainable Markets Initiative (SMI) gathered ambitious companies to drive growth in the demand for, and supply of, hydrogen - an essential part of the future net-zero energy system.
Pledges across three categories – demand, supply and financial or technical support – have been made by 28 companies representing different sectors from mining to energy, vehicle and equipment manufacturers, and financial services.
The Hydrogen Council estimates that in 2030, the decarbonisation potential for hydrogen could equate to approximately 800 million tonnes per annum (mtpa) of carbon dioxide (CO2) emissions avoided. The pledges announced already equate to nearly one quarter of this total.
Insurance Task Force Updates
Sustainable Products and Services Showcase
The ITF have published a Sustainable Products and Services Showcase, presenting the wide-ranging innovative insurance solutions currently available to customers to develop, invest in and scale their sustainability initiatives, supporting green innovation across multiple sectors and geographies. It shows the critical role the global insurance industry is already playing in underpinning and safeguarding the efforts of multiple industries as they drive climate-positive action to adapt and transition to a sustainable future and comes as action from one of the five commitments the ITF signed up to deliver throughout 2021.