The Institutional Investors Group on Climate Change (IIGCC) has set out several core principles to help policymakers develop sectoral pathways and supporting policy frameworks to meet decarbonisation targets. According to the IIGCC, such roadmaps remain credible and useful, and that policymakers should be clear about how new policy initiatives support this transition. The organisation also stated that more transparency should be provided over planned financing mechanisms. “With countries updating their Nationally Determined Contributions this year, ensuring these are ‘investable’ is critical,” said the IIGCC in a statement. The IIGCC acknowledged that policymakers in several jurisdictions have developed sector decarbonisation roadmaps in recent years, but noted that these vary significantly in the amount of detail they provide and can also contain significant gaps in information from an investor perspective. The IIGCC said these new core principles will allow roadmaps to be “more effectively used by investors to inform decision-making and investment processes while fulfilling their fiduciary duty to manage risk and return and protect the long-term value of their assets.” The organisation added that, if done well, the roadmaps can also “better allow policymakers to attract the long-term investment required to implement ambitious climate goals”.
