Green Finance Alliance

The financial system has a profound leverage for climate protection. Invest ments required for the climate-friendly transformation of the economy will in crease significantly compared to previous estimates due to the European Climate Law that was adopted in summer 2021 and its stipulated target of a greenhouse gas reduction (GHG reduction) of at least 55 per cent by 2030 (based on 1990 levels). The EU Effort Sharing Regulation1 calls for Austria to re duce its national GHG emissions not covered by the EU emissions trading sys tem by 48 per cent by 2030 (based on 2005 levels). Initial estimates by the Environment Agency Austria indicate that the average additional investment needed in Austria for the sectors energy, industry, buildings and mobility alone amount to Euro 16.2 billion per year between now and 2030 in order to advance on the path towards climate neutrality. The public sector will have to take the neces sary steps to reach these targets. However, a climate-friendly transformation of the economy and infrastructure also requires investment, financing and insur ance solutions from the private sector.

Proactively aligning core business activities with climate targets can create im portant business opportunities while simultaneously reducing risks. This is highly important for a resilient economic and financial system. Once a certain ecological tipping point is reached, it will take enormous effort to restore stabil ity in the system – if it can be restored at all. Moreover, as the climate crisis worsens, GHG emissions are increasingly becoming a risk and cost factor. The Green Finance Alliance (GFA) helps its members on their journey to a climate friendly and sustainable future. Membership of the GFA offers value by helping companies align their own core business with resilient activities and thereby contributes to securing a liveable future for generations to come.

Herausgeber:

Environment Agency Austria on behalf of the Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology

Ausgabejahr:

2024

Ausgabeort:

Vienna

Format:

Download

Kategorie:

Green Finance

Seitenanzahl:

43