J.P. Morgan AM: An increase in financial support is needed for the low-carbon transition

J.P. Morgan AM: An increase in financial support is needed for the low-carbon transition

7 november 2022

Energietransitie
Energie elektriciteit (2) energiecentrale.jpg

A major report released ahead of COP27 found that commitments to reduce greenhouse gases still lag behind what is needed to limit the rise in global temperature to under 2 degrees. Without additional action, current policies are expected to lead to global warming of 2.8°C during this century, a scenario which entails significant risks for the global economy.

Wide-ranging, large-scale, rapid and systemic transformation of sectors including electricity supply, industry, transportation, food and real estate is now essential to achieve the temperature goal of the Paris Agreement. This transition to a low-carbon economy will require investments of at least USD 4-6 trillion a year of which 20-28% is expected to come from the financial system. This presents investors with a sizeable opportunity against the backdrop of increasingly supportive regulatory and fiscal policy.

07112022 J.P. Morgan AM

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