Global trend in investment
Climate change is increasingly becoming a key and common concern of humankind. Nearly 200 countries have signed the Paris Agreement at the 2015 United Nations Climate Change Conference to combat climate change, by keeping a global temperature rise in this century below 2°C and pursuing efforts to keep it under 1.5°C to save the feverish Earth.
The Paris Agreement has sowed the seeds of green finance. In order to control the temperature rise of the Earth’s climate system, it is important to keep the emissions of heat-trapping gases, mainly carbon dioxide under check. Fostering low-carbon economies is a critical step. Both commitment and capital are essential to achieve the transition to a low-carbon economy. In recent years, green finance has emerged as a result of climate change prompting capital flows towards low-carbon, sustainable and climate-resilient projects, products as well as enterprises.
In response to climate change issues, we can also develop a new mindset towards our investments. Making money will still be the goal of investing, but a sustainable and climate-resilient return will be the consideration.
14 March 2019