Global and Regional Policy Advocacy

Overview

Investors are a key influence on policymakers and, therefore, to their beneficiaries.

Public policy is a key ingredient in defining the rules by which capital markets operate. It signals and incentivizes the flow of capital across the global economy, particularly where the benefits of investment accrue not to one market actor but across the global economy and society. Policymakers need to create policy frameworks that support investment in low-carbon assets, enable investment in adaptation measures, and enact a just transition for affected workers and communities. They also should ensure that investors take full account of the risks and opportunities presented by climate change in their decision-making.

2024 Global Investor Statement

Effective policies are essential at all levels of government to accelerate the private capital flows needed for a climate-resilient, nature-positive, just net zero transition. That’s why, the Founding Partners of The Investor Agenda are facilitating the 2024 Global Investor Statement to Governments on the Climate Crisis, the most comprehensive yet.

The Statement calls for a whole-of government approach to implement 5 critical policies in line with countries’ nationally-determined contributions (NDCs) and a 1.5°C scenario, recognizing common but differentiated responsibilities and respective capabilities between emerging and developed economies, that will accelerate private sector action and large-scale investment.

Read the 2024 statement

The Changing Climate Policy Landscape

Public policy shapes the decisions made by investors and by companies on where they allocate and where they do not allocate capital. Public policy also shapes the terms on which capital is allocated, including factors such as the cost of capital, the risk premia that are applied, the security or collateral that is needed, the duration of the investment, and the target returns.

Private capital has a critical role to play if we are to successfully transition to a low carbon economy and respond effectively to unavoidable physical climate change. It has therefore been a focus of international, regional and domestic monetary and fiscal policy and this has catalyzed significant growth in climate finance flows over the past decade.

The level of ambition in public policy has grown dramatically in recent years. The US Inflation Reduction Act is perhaps the most high-profile example of this trend. Similar industrial policy programs include the European Union’s Fit for 55 and RePowerEU plans, while Japan has launched the Green Transformation (GX) and China, the 1+N policy framework.

The Founding Partners of the Investor Agenda have published a report which analyses how investors are responding to this new generation of policy interventions, suggesting that good climate policy frameworks, i.e. policy that enables and accelerates the investment needed to meet the goals of the Paris Agreement, is underpinned by eight key features:

Clear Commitments to Action,
Clear Short-, Medium- and Long-term Targets,
Comprehensive and At Scale,
Sector-specific Policies,
Provide the Right Incentives,
Just Transition,
Transparency, and
Transition Planning.

Find out more and read the full policy report here

Country Policy Groups (CPGs)

The Founding Partners of the Investor Agenda have global reach and regional depth across Africa, Asia-Pacific, Europe, Latin America and North America and each Founding Partner has investor members and followers from all around the world. The Investor Agenda Policy Working Group has worked with investors at the local level to drive country- and region-specific policy goals.

Australia CPG

November 2022 – six of the founding members of the Investor Agenda issued a common letter to the Australian Treasurer and the Reserve Bank of Australia Governor to require internationally consistent mandatory TCFD-aligned disclosures adopting the standards issued by the International Sustainability Standards Board.

October 2021 – six of the founding members of the Investor Agenda issued a common letter to the Australian Treasurer and Reserve Bank of Australia Governor calling for the integration of TCFD-aligned disclosure requirements.

July 2021 – CDP, IGCC and PRI convened a roundtable between senior representatives of Australian Council of Financial Regulators and a group of senior investors to discuss investor expectations the implementation of mandatory TCFD in Australia.

June 2021 – CDP, IGCC and PRI released a plan for Australia to adopt a mandatory financial disclosure for climate change risks over the next four years to help cut red tape for business and protect national economic stability.

European Union CPG

September 2022 – CDP, IIGCC and PRI published a report looking into Green Recovery in the EU and how EU recovery funds can support investors and the European Green Deal.

September 2022 – CDP, IIGCC and PRI write to the European Commission to encourage an ambitious approach to negotiations on the EU “Fit for 55” package which will implement its updated NDC across a range of real economy policy instruments.

April 2021 – CDP, IIGCC and PRI convened a roundtable between representatives of the European Commission and a group of about 100 investors to discuss investor expectations on a sustainable economic recovery in the EU following the pandemic. The strong investor turnout at the session indicated the importance of this topic for the investment community, and an open dialogue allowed for a mutually beneficial exchange of views.

December 2020 – CDP, IIGCC and PRI CEOs published an open letter on high climate ambition in the EU’s 2030 target and sustainable recovery package.

Japan CPG

March 2022 – AIGCC, CDP and PRI published an open letter to the Prime Minister of Japan calling for decisive decarbonization action around coal reduction and clean energy increase following COP26.

October 2021 – AIGCC, CDP and PRI published an open letter to the Minister of Economy, Trade and Industry of Japan on Japan’s Strategic Energy Plan inviting him to support Japan’s achievement of a carbon neutral goal for 2050.

October 2021 – AIGCC, CDP and PRI published an open letter to the Commissioner of the Financial Services Agency of Japan inviting him to encourage Japan’s adoption of Mandatory Corporate Climate-related Disclosure and lead conversations on the topic at international events and conferences.

March 2021 – the CEOs of AIGCC, CDP and PRI called upon the Government of Japan to adopt robust and ambitious policy measures to increase investor confidence in mobilizing private capital towards the net-zero emissions energy transition.

US CPG

June 2022 – Ceres coordinated an Investor Agenda-wide response to the consultation on the draft climate rule of the Securities and Exchange Commission (SEC), as well as advocating for responses from global investors. An Investor Agenda blog outlines our response to the SEC.

September 2021 – CDP, Ceres and PRI issued a common statement to US Congress to pass large reconciliation package complete with ambitious climate investments.

July 2021 – CDP, Ceres and PRI issued a common letter to US policymakers calling for a broader and bolder bipartisan federal infrastructure package that will better support the just and inclusive transition to a net zero emissions future.

April 2021 – CDP, Ceres and PRI issued a common letter to US policymakers setting out bold and effective action to address the climate crisis.