G20 policies failing to attract the necessary investments in climate solutions

18 October 2021
  • A Report Card of G20 countries’ climate policies finds several Asia-Pacific nations are among the least attractive green investment destinations
  • Strong 2030 emissions targets, net zero by 2050 and mandatory climate risk disclosure can close the gap and attract investment
  • Investors with over US$46 trillion in assets are calling on G20 leaders to act as the most consequential international climate conference since Paris approaches
  • G20 countries have significant work to do to ensure climate risk is effectively managed

An assessment released today by three major global investor groups that G20 countries have significant policy barriers deterring investment in the opportunities to tackle the growing climate crisis.

The G20 Countries’ Climate Policy Report Card finds that most G20 countries do not have the policy settings in place to attract the urgent investment needed in the zero emissions, climate resilient transition. This is a significant finding, with G20 countries accounting for 80 per cent of global greenhouse gas emissions.

The Report Card finds Argentina, Australia, China, India, Indonesia, Mexico, Russia and Saudi Arabia are among the least attractive countries for green investment in the G20.

“Investors understand that climate risk is investment risk,” said Asia Investor Group on Climate Change (AIGCC) Chief Executive Officer and member of The Investor Agenda steering committee, Rebecca Mikula-Wright.

“Investors want to seize the enormous investment opportunities that will be created in the transition to net zero. Across Asia, Australia and New Zealand, we are urging governments to step up and commit to clear and strong climate policies that will unlock the capital needed to transition to a net zero economy. Investors are ready.”

The Report Card collates analyses from independent, credible, and rigorous sources to enable investors to identify countries with the most and least attractive green investment environments. It is being released by AIGCC, Ceres, and IGCC, all of whom are founding partners of The Investor Agenda, a common leadership agenda accelerating investor action for a net zero future.

The Report Card measures G20 countries’ progress towards the five policy recommendations in the Investor Agenda’s 2021 Global Investor Statement to Governments on the Climate Crisis, which are key to unlocking the trillions of dollars needed to address the climate crisis.

The United Kingdom and European Union are found to be the most attractive destinations for green investment, although they still have substantial improvements to make.

With less than two weeks until the most consequential United Nations climate change conference in years (COP26 in Glasgow), time is running out for countries to commit to more ambitious and effective policies to address the climate crisis.

Read the G20 Report Card
Read the full media release
Sign the 2021 Global Investor Statement