JP Morgan | This week saw the start of COP26 – the 26th Conference of the Parties – where world leaders from nearly 200 countries will review the climate commitments made in the 2015 Paris Agreement.
As we discussed in our recent post, What can we expect from COP26 and what will it mean for investors, securing the finance needed for the energy transition will be a key part of the debate.
Investment in clean energy has increased steadily in recent years, but the latest estimates from the International Energy Agency highlight that investment will need to at least triple over the next decade to stay on track to limit global warming to below 1.5 degrees Celsius. A likely consequence for investors is a sustained increase in green bond issuance, as governments and companies seek to take advantage of more favourable financing costs to fund new climate-focused spending.
