The investor group which manages more than $10.4 trillion, is urging governments across the globe to not let the worries over energy security impede their transition to greener energy and climate change goals, the group said in a statement entitled “escalating energy security crisis underscores imperative for accelerated net-zero transition”.
The group referring to the situation in Ukraine said, “As countries face critical choices in their energy strategies, amid heightened geopolitical tension and a rapidly warming climate, governments must ensure that energy security policies are compatible with net-zero scenarios mapped out by the International Energy Agency (IEA) or the Intergovernmental Panel on Climate Change (IPCC).”
The group says that “the world is still heading for an excess of fossil fuel-based energy use that will vastly exceed the carbon budget needed to meet the 1.5C Paris Agreement goal.” and that “This trend must be halted.”
They caution that policymakers choices could impact the ability for climate targets to be reached.
“Choices made by policymakers now must not delay the longer-term adjustments that are needed for energy markets and infrastructure to align with the Paris Agreement and reach net-zero emissions, by 2050 at the latest.”
They tell governments that developing new fossil fuel reserves “will create lock-ins and stranded assets at an enormous opportunity cost.”
Demanding that “governments must now rule out locking in long-term fossil fuel subsidies,” arguing that they “run contrary to net-zero policies and exacerbate market distortions.”
The United Nations investing group claims that the only way there can be long-term energy security is to move to low and zero-carbon technologies. In turn, this means the transition away from fossil fuel energy sources.
The group says they will “continue to engage with society to invest in climate change mitigation, adaptation, and clean technologies to ensure a just transition at an unprecedented scale.”