Daniel Hanna, Global Head of Sustainable Finance, Standard Chartered
The International Energy Agency estimates that USD53 trillion is needed to achieve the Paris Agreement and keep global warming below 2 degrees. A separate analysis suggests that USD5-7 trillion is required to meet the United Nations Sustainable Development Goals by 2030 and while advanced economies are close to meeting these requirements, there is a funding gap of around USD2.5 trillion in emerging and developing countries, with USD1.3 trillion of that in Africa alone.
There are encouraging signs that private finance is responding. Already one in four of every dollar invested globally takes into consideration some form of environmental, social or governance filter. This ’responsible’ kind of investment is growing at 12 per cent per annum in Europe, according to Global Sustainable Investment Alliance, far outstripping the 3 per cent annual growth of conventional investment.
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