Investors urge governments not to abandon climate for energy security

LONDON, April 8 (Reuters) – Owners of assets managing more than $10.4 trillion have urged governments not to let worries about the security of fossil fuel supply hinder the transition to much-needed greener energy to limit catastrophic climate change.

As governments scramble to replace Russian oil and gas supplies following the invasion of Ukraine, United Nations climate scientists this week issued fresh warnings about the need to rapidly scale up renewable energy and reduce support for emissions-intensive fossil fuels.

The Steering Group of the Net-Zero Asset Owner Alliance, which counts some of the world’s largest pension schemes and insurers among its members, said on Friday that energy security policies must align with the global climate goal.

This target, set in the Paris Agreement, aims to limit global warming to 1.5 degrees Celsius above pre-industrial levels by 2050, and would require drastic short-term reductions in the use of fossil fuels. Read more

“The world is still heading towards excess fossil fuel-based energy use that will far exceed the carbon budgets needed to meet the Paris Agreement target of 1.5°C. This trend must be stopped. “, said the group of investors.

The group called for an end to the use of taxpayers’ money to prop up the fossil fuel industry through subsidies that run counter to promises made by governments to achieve net zero emissions.

“In the short term, using all available energy resources – including the immediate scaling up of energy efficiency – to diversify the energy supply must be a top priority for many countries, especially in Europe. “, said the group.

Unit costs for solar power and lithium-ion batteries have both fallen by about 85%, while wind power costs have fallen by 55%, the investor group said.

“These are viable steps towards energy system resilience, a greener economy, green job creation and protecting businesses and consumers from future oil and gas price spikes,” the investors said.

Reporting by Simon Jessop in London; Editing by David Gregorio

Our standards: The Thomson Reuters Trust Principles.