The Financial Sector Eases Its Commitments to U.N. Net-Zero Targets Ahead of COP27
MIN READNov 3, 2022 | 19:17 GMT
People hold up placards during a climate protest outside investment firm BlackRock's office building in New York City on Oct. 29, 2022.
Financial institutions' ongoing push for more flexible climate-related goals will limit private sector enforcement of emission-reduction pledges, slow down the pace of the energy transition and limit progress in the upcoming COP27 climate summit. On Oct. 27, the Glasgow Financial Alliance for Net Zero (GFANZ), a group of financial institutions committed to the fight against climate change, said that it will no longer require its members to partner with the U.N.-backed campaign Race to Zero (RTZ), which aims to boost commitments from non-governmental entities like financial institutions. The group dropped this membership requirement after pushback from banks and governments over harsh criteria set by RTZ. In its annual progress report, GFANZ said members should ''take note of the advice and guidance of'' the Race to Zero. A GFANZ official later stated to Reuters that members ''are encouraged, but not required, to partner with the Race to Zero.'' The easing of...