Aligning asset owner energy portfolios with Paris Agreement
Tackling fossil fuel production and consumption is vital if we are to prevent climate change from reaching dangerous levels. A major obstacle in this challenge is the flow of investments into the fossil fuel industry. Together with 12 WWF national offices in key European countries, the WWF European Policy Office (WWF EPO) are working to limit the private financing of fossil fuel projects.
Changes in European policy and institutions have provided a key opportunity to reduce energy sector emissions by halting the global expansion of highly-polluting coal-fired power plants and accelerating the shutdown of existing plants. WWF EPO seek to engage the 100 largest asset owners in Europe, to influence their investment strategies. Part of this engagement includes an annual ranking of the asset owners’ investments in coal mines, coal-fired power plants and renewable energy. This ranking will extend to investments in oil and gas from 2018. The project aims to scale and speed up investment portfolio transformation that moves finance away from fossil fuels, primarily coal, while increasing support for renewable energy.
Green Exchange has created a podcast on the project featuring three large investors; Magnus Billing from Alecta (SE), Andreas Stang from PFA (DK), and Paddy Arber from Aviva (UK). You can listen to the podcast here.
The WWF EPO have developed a private finance program, whose mission is to ensure a coordinated, systematic approach to aligning investment portfolios with the Paris Agreement. The EPO sits within WWF’s extensive international network that works on climate change and environmental degradation issues.
Through this project, the WWF EPO aim to:
- Push for a phase-out of European coal-fired power plants by 2030;
- Align asset owners’ energy investments with the Paris Agreement and galvanise their portfolios with a commitment to the agreement;
- Encourage synergies between the activities of asset owners, investment managers and policymakers in the pursuit of a climate safe future.