GFANZ: “The Glasgow Finance Alliance for Net Zero (GFANZ) was launched in April and chaired by the UN Special Envoy on Climate Action and Finance, Mark Carney, a former governor of the Bank of England and the Finance Adviser of the United Kingdom Prime Minister for COP26. Now consisting of more than 450 banks, insurers and investment managers from 45 countries (..) “It includes such familiar names as BlackRock, Vanguard, State Street, Bank of America, HSBC, Goldman Sachs, and the like. The total assets of the GFANG members is about $130 trillion, with $63 trillion coming from banks, $57 trillion from investment managers and $10 trillion from asset owners such as pension funds “
clarification “the Lex team of the Financial Times intervened and clarified that $130 trillion is not ready funds but the total assets managed by member financial institutions of the GFANZ”
so much boasting, little less substantial committments, it is clearly a bait for governments who do not want to pay the polical costs of decarbonization at home, so would accept a “helping hand” from investors. Quotes from this great article Climate crisis, global debt, and the Fermi paradox – a proposal to the IMF
So, where is the catch ? Private investors in GFANZ want to get government guarantees in order to “derisk” their own investments, so social risk and private gain, something we have already heard of, think global crisis in 2008. Derisking is punt under the spotlight by economist Daniela Gabor as the new Washingotn Consensus, the guiding idea on internation monetary institutions in tackling the climate emergency, without tackling the inequality behind it. Here on the Guardian: Private finance won’t decarbonise our economies – but the ‘big green state’ can
Post scriptum: I think it is relevant to add here Policy Tensor’s post on funding the transition with public money, it has a lot of data on the cost of risky green projects in less developed countries, rightly say that we are back to the development themes of the 60’s of the 20th century, he offers a stark analysis of the geopolitical situations and calls for US to “securitize” the transition issue, which isn’t per se a good thing, sorta calling for a war posture.
BTW he sort of dissent with Gabor, derisking might be needed but the process should not be left in the hands of the blackrocks
Is it feasible to publicly fund the global energy transition?
and the older FEAR AND LOATHING ON THE HOCKEY STICK OF DOOM