Thread by @lorsgonzalez

What did #COP26 #FinanceDay delivered? A 🧵 of key highlights:

First let’s recall some of the expectations for the financial sector initiatives toward #netzero at #COP26:

✅increased ambition
✅enhanced transparency
✅improved accountability
✅more inclusivity
✅transformative approach

Efforts to gather such a broad set of financial actors under the #RaceToZero are remarkable and should contribute to making finance flows consistent with low-GHG & climate-resilient pathways (Art.2.1c of PA), having said that...

The bottom-up approaches that many of these non-state actors have taken to set #netzero targets have raised legitimate questions on their quality and integrity. Risks of greenwashing have been well documented and confirmed over & over again.

Today most attention has been given to #GFANZ progress report that confirmed $130tn of private capital have been committed by these financial actors to reach #netzero by mid-century.

Focus on the quantity of capital under #GFANZ has encountered severe skepticism from developing countries, experts & the media alike. This approach bears high risk of overpromising and relegates issues of quality and integrity of these commitments.

The notion repeatedly used by senior officials speaking at #FinanceDay that 💰 can do wonders on its own to accelerate #ClimateAction, without public intervention, is also misleading. e.g. $130tn in AUMs vs $340bn private finance flows in 2020.

@MarkJCarney announced a new plan to scale private capital flows to emerging and developing economies using ‘country platforms’ to connect private capital committed to #netzero with country projects. But no word on how to deal with concentration of assets and lack of inclusivity

#GFANZ welcomed @MikeBloomberg as co-chair and announced that its Secretariat will have presence in Europe, the Americas, Africa, and Asia.

At the end of #FinanceDay it is fair to say that momentum is growing. Either out of fear due to the risks of a high-carbon economy or the renewed sense of opportunity of a green one, but assessing the credibility of corporate #netzero targets remains challenging.

Going forward, decarbonization pathways need to be science-based, backed up by short-term actions and interim targets. The Group of Experts announced by @antonioguterres is an important step to build trust and ensure accountability. Also the formation of the #ISSB

Lastly, it should go without saying, distinction between alignment efforts and the provision & mobilization of #climatefinance from developed to developing countries (including the $100bn goal) lies on the principles of equity and differentiated responsibilities @UNFCCC