Transitioning Financial Flows from Coal to Clean Energy

Context

More and more financial institutions recognize the business case for moving away from coal. With renewable energy increasingly more economical than coal, continued investments in coal power pose the risk to investors of being left with cumbersome, costly and polluting assets on the books.

Despite this positive trend a significant amount of investment, from private and public sources, is still being made in unabated coal power around the world. This situation poses a substantial transition risk for the financial sector.

Through the PPCA Finance Taskforce, underpinned by the PPCA Finance Principles, finance and government members and partners of the PPCA are working together to cease new investments in coal-fired power, phase out existing coal capacity and boost investments in clean energy.

Session description

During this PPCA Summit session, senior-level experts from the financial sector emphasized the importance of phasing out coal investments and explain how firms can implement such commitments, aiming to mobilize the finance sector to take necessary action on coal phase-out in the lead up to COP26.

Speakers identified key challenges and best practices in implementing coal policies internally and in engaging in advocacy among companies. They also outlined opportunities for financial institutions to improve methods to measure whether their corporate lending portfolios are aligned with climate scenarios that focus on phasing out coal investments. They also touched upon the need to ensure effective coal disengagement at the marketplace level, through a common minimum approach amongst financial market participants, support and evaluation by supervisors and relevant scientific input.

Agenda & Speakers

5 mins	Marcel Beukeboom Climate Envoy Kingdom of the Netherlands
5 mins	Eric Usher Head of Finance Initiative UN Environment Programme Finance Initiative
20 mins	Gildas Poissonnier Director of Sustainability and Responsible Finance Desjardins Anne Simpson Managing Investment Director CalPERS Cristina Cedillo Torres Engagement Specialist Robeco Maarten Vleeschhouwer Head of PACTA 2° Investing Initiative Sylvain Vanston Group Head of Climate & Environment AXA Group
25 mins

Partners