This share prices have a 15 minute delay and are shown in the local time of the market in which the quote is displayed.
Failure to meet global GHG emission reduction targets
The UNEP’s Emissions Gap Report 2022 shows how nations plans to reduce Green House Emissions (GHG) need to be more ambitious to get on track to limiting global warming to 1.5°C, as existing policies point to a 2.8°C increase. According to the report nations stepwise approach is no longer an option and it is necessary an urgent system-wide transformation to avoid climate disaster. To this end, the report provides recommendations in different sectors, including the financial system.
Another highlights
- Very limited progress in reducing GHG since COP 26 (Glasgow 2021). Policies currently in place with no additional action are projected to result in global warming of 2.8°C over the twenty-first century. In fact, Global GHG emissions could set a new record in 2021 after the pandemic short-lived reduction (Total global GHG emissions dropped 4.7%t from 2019 to 2020)
- More ambitious targets are needed: To get on track for limiting global warming to 1.5°C, global annual GHG emissions must be reduced by 45% in just eight years, and they must continue to decline rapidly after 2030. Apart to set more ambitious targets the report call for a wide-ranging, large-scale, rapid and systemic transformation of the economy. To this end, the report provides recommendations in different sectors such as electricity supply, industry, transport, construction, food and finance.
- Financial system will play a relevant role but will have to be transformed. Greening the economy will require investments of at least US$4–6 trillion a year, a relatively small (1.5–2 per cent) share of total financial assets managed, but significant (20–28 per cent) in terms of the additional annual resources to be allocated. The report makes recommendations to enable the sector to provide the necessary financial flows, for example:
- Making financial markets more efficient, through improved disclosure by introducing taxonomies and higher climate disclosures.
- Introducing carbon pricing, either through carbon taxes or emissions markets.
- Mobilize central banks: Central banks are increasingly addressing the climate crisis, but more concrete regulatory action is urgently needed.
- Create collaborative climate "clubs" between countries, with cross-border finance initiatives, credible financial commitments, and government support plans to finance the decarbonisation of the economy.
Filter results
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.
IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.