Vancouver, October 21, 2011 - Investors
controlling tens of trillions of dollars have asked policymakers to
write better and clearer rules, in order to enable the transition
to a low carbon economy.
They have signed a statement entitled Investment Grade
Climate-Change Policy, which was commissioned by three global
Institutional Investors Groups and the United Nations Environment
Programme Finance Initiative.
This statement provides an excellent check-list for
policymakers
(and their observers or advisors) and highlights the importance of
policy risk minimization in attracting investment capital. Concrete
examples of six national policy frameworks around the globe are
also analyzed.
The policy recommendations include: clear, enforceable domestic
greenhouse gas emission reduction targets and timelines;
transparent and comprehensive policies to meet these targets; a
price on carbon and removal of fossil fuel subsidies; clear
criteria for any change in policy, to avoid surprises; and support
for a binding international treaty on carbon pricing and greenhouse
gas emission reductions.
Signatories to this statement include British Columbia Investment Management
Corporation, British Columbia Teachers Federation and Vancity Investment Management Ltd.
The big five Canadian banks have not yet added
their names. British Columbia has implemented many of the policies
recommended by the group, through the Greenhouse Gas Reduction and Carbon Tax Acts,
and through membership of the Western Climate Initiative.
In two months, British Columbia will join its partner provinces
and states (including California) in the initiative's cap and trade
market. Although recent policy statements from provincial
leadership have focused on infrastructure investments to help fossil fuel
industries, BC should also remind global investors of its clear
emission targets and carbon pricing.
At
GLOBE 2012,taking place March 14-16,
2012, Experts from government and the private sector will
discuss regulatory approaches for managing greenhouse gas emissions
and developments in global carbon markets. Get More
information on GLOBE 2012 here