$130 trillion in climate finance vow takes the spotlight, after world leaders exit COP26

• Institutions pledged $130 trillion to reach a net-zero emission

• Rishi Sunak gave UK companies until 2023 to set out their plans to shift to a low-carbon economy

With the world leaders leaving the COP26 climate summit on Wednesday, all the attention shifted towards the state treasuries, banks and businesses responsible for carrying out the commitments to cut greenhouse gas emissions and build infrastructure.

More than 450 banks, insurers and asset managers across 45 countries managing 40% of the world’s financial assets signed up to pledge $130 trillion of private capital to hit net zero emissions targets by 2050.

Also Read: Biden pledges to cut methane emissions by 30% by 2030

The amount almost doubled from $70 trillion when Glasgow Financial Alliance for Net Zero (GFANZ) was launched in April, according to a report published by the coalition on Wednesday.

The coalition

GFANZ was formed in April to use science-based guidelines to reach net-zero carbon emissions by mid-century and provide 2030 interim goals, led by former Canadian central banker Mark Carney and former mayor of New York and founder of Bloomberg News, Michael Bloomberg.

The main aim of the United Nations climate summit, held in Glasgow, Scotland, was to secure national commitments to cut greenhouse gas emissions - which is mainly generated from burning fossil fuels – and prevent the worst climate disasters by keeping the average rise in the global temperature to 1.5 degrees Celsius.

“Ramping up adoption of clean energy and other sustainable infrastructure fast enough to avoid the worst impacts of climate change will require trillions of dollars in new investment — likely in the ballpark of $100 trillion,” the GFANZ co-chairs wrote. “Most of that will have to come from the private sector, especially after the enormous toll that the pandemic has taken on governmental budgets.”

Also Read: Musk offers $6-bn kitty if UN proves how it would solve world hunger

Britain’s commitment

British finance minister, Chancellor of the Exchequer, Rishi Sunak, called the commitments “historic” in a separate statement.

Sunak also used the opportunity to announce plans to make Britain, which is hosting the COP26 climate summit, “the world’s first net-zero aligned financial center,” and gave UK companies until 2023 to set out their plans to shift to a low-carbon economy, complete with interim targets.

Picture Credit: Al Jazeera