In response to the newly published IPCC report on climate change, Hector McNeil, co-CEO of HANetf says: “The IPCC report makes for very depressing reading, the world is on fire and everybody needs to do more to tackle climate change.
“The investment industry in particular needs to do much more, and at the moment there is too much ‘hot air’ when it comes to what the industry is doing in relation to tackling climate change, but not enough action.”
Gabriela Herculano, co-founder of the iClima Global Decarbonisation Enablers UCITS ETF says: “The IPCC report is yet another clear warning that we are running out of time and must act fast, aggressively and in collaboration. The next few months ahead of COP26 are critical and give us an opportunity to focus on the key points that must be agreed on promptly.
“Firstly, we need a clear ban on new coal power plants. As Carbon Tracker pointed out last month, China, India, Indonesia, Japan and Vietnam are still planning to build 600 new coal fired power plants. Renewable energy can be more price competitive in those jurisdictions so alternatives are in place. Moreover, we do need a global agreement on a deadline to decommission all existing coal plants.”
HANetf welcomes the UN statement today on climate change, which sounded a dire warning, but warns that the current situation is much worse than expected and humans are ‘unequivocally’ to blame.
The firm writes that climate change is accelerating and escalating across the planet, which is having a significant impact for economics around the world.
“Today the world’s leading climate scientists delivered the clearest picture of the climate crisis, as well as the likely effects of further temperature rises that are set to play out over the coming decades.
“The IPCC report delivers stark warning and stresses on course to net zero emissions by 2050 could reduce the escalating impacts that will result from a warmer world. The report concludes that the world is likely to temporarily reach 1.5C of warming within the next 20 years even in a best-case scenario of deep cuts in greenhouse gas emissions. It also stresses that human actions are clearly the primary driver of the escalating climate crisis.
“Decarbonisation and drastically reducing the use of fossil fuels is not happening fast enough and even the 2050 target is too little too late. There are also large degrees of acceptance the 2050 target will probably be missed.
“HANetf believes asset management has a leadership role to play in tweaking their approach to encourage decarbonisation and carbon neutral investing. HANetf offers ETFs which focus on decarbonisation enabling companies.”
The iClima Global Decarbonisation Enablers UCITS ETF, is the firm writes, the world’s first climate change UCITS ETF that provides exposure to the performance of companies offering products and services that enable CO2e avoidance. HANetf writes that CLMA is unique because it shifts the focus from companies’ emission reduction actions, to companies offering products and services that directly enable CO2e avoidance solutions and shines a spotlight on climate change innovators.
“HANetf believes investors don’t want to wait until 2050 for companies to transition to carbon neutral activities and decided to develop HANzero carbon offset feature, the first of its kind within Europe’s ETF market,” the firm says.