The London Accord
The London Accord is a collaboration between investment banks, research houses, academics and NGOs to produce free research on climate change for financial investors.
It is intended as a reference guide for investors in the climate change sector.
The London Accord is the largest cooperative project in the world on investment opportunities in avoiding climate change.
History
The London Accord began in 2005, was launched formally in March 2007 and published its first results on 19 December 2007 launching them at a roll out meeting at Mansion House in London. These findings are freely available from its website.Its main summary of December 2007 said:
- The IPCC shows that the world needs to act to avoid disastrous climate change, and act now.
- The Stern Report shows that the overall cost of strong early action is much less than the cost of inaction.
- The International Energy Agency shows the changes in fuel mix and energy usage that are necessary to stabilise greenhouse gas concentrations at a safe level.
- The UN Framework Convention on Climate Change shows how much money is required by region and by technology to realise a scenario that achieves stabilisation.
- The UNFCCC report shows further that 86% of that investment has to come from the private sector. That equates to private sector investment through 2030 in excess of $600bn per year.
- The London Accord report shows investors and policy makers by technology how attractive that private investment is, at the end of 2007.
Findings
The findings of the research carried out show that:- energy investment is going to become much, much riskier
- key governmental focus should be on establishing cap-and-trade markets, then international carbon standards, then regulation; not taxation
- forestry is a big unknown – governments should fund research into the real extent of abatement potential and the real costs of forestation
- carbon capture and sequestration/storage seems an unrealistic investment