Leaders and businesses must combine to overcome the distinct lack of ambition that hampering efforts to meet the challenge of climate change, the UK Minister of Energy, Climate and Environment at the Foreign Office, Zac Goldsmith, has told a summit of top investors.
"We know that the technology exists, we know the direction of travel," he told the summit, which is being held at the London Stock Exchange.
"The only thing really that's missing is boldness and ambition on the part of leaders, both political and corporate, and that is something that we between us can change."
Mr Goldsmith emphasised the urgency that is needed to keep the rise in global temperatures 1.5ºC below pre-industrial levels.
"Even climate sceptics would struggle to argue that we aren't spending our natural capital at a rate which is far faster than it is or even could be replenished.
"So, there's no doubt that responding to this gigantic challenge that we're talking about today is the most pressing priority of all and it requires a global effort."
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Cop28 Director-General Majid Al Suwaidi joined a panel discussion on climate diplomacy and highlighted the UAE’s priorities. All Photos: Cop28 UAE -
Cop28 Director-General Majid Al Suwaidi stated the need for ambitious partnerships -
Cop28 High-Level Champion Razan Al Mubarak said technology "we already have that’s readily available” can provide 30 per cent of the solution to keeping climate targets alive -
Protecting, restoring and sustainably managing nature is a key priority, stressed UN Climate Change High-Level Champion Razan Al Mubarak -
Dr Sultan Al Jaber, Cop28 UAE President-Designate and Minister of Industry and Advanced Technology, with Zac Goldsmith, Minister of State for Overseas Territories, Commonwealth, Energy, Climate and Environment -
Cop28 President-Designate, Dr Sultan Al Jaber met with Zac Goldsmith -
Minister of Industry and Advanced Technology Dr Sultan Al Jaber had productive discussions with Grant Shapps, UK Secretary of State for Energy Security and Net Zero, and Graham Stuart, Minister for Energy Security and Net Zero. -
President-Designate Dr Sultan Al Jaber during the discussions ahead of Cop28 that will be held in Dubai -
The UAE and the UK have agreed to engage in closer co-operation in the lead-up to Cop28 to keep global warming targets within reach. -
Both countries will work together to shape a response to the global stocktake and push forward with a ground-breaking agenda on clean technology solutions at the climate summit in Dubai in November.
Mr Goldsmith was speaking during a busy week of climate discussions and events in London. Dr Sultan Al Jaber, Cop28 President-designate, has led a visit by Cop28 officials and on Tuesday also met UK Secretary of State for Energy Security and Net Zero Grant Shapps to discuss joint efforts to tackle climate change.
The focus of the Climate Investment Summit is on the role that money and finance is playing in the battle against climate change. Mr Goldsmith alluded to the finance gap – the trillions of dollars needed and the push for green finance to become mainstream.
"It's about not investing in destruction, we could multiply tenfold the amount of money that's flowing into climate action or protecting and repairing the natural world, but if the rest of the money, if mainstream finance, continues moving in the opposite direction, then it's not going to have much impact." Mr Goldsmith said.
While there is much that the public sector can do, Mr Goldsmith argued, climate change issues cannot be addressed without significant engagement from private capital.
"A big part of closing that finance gap necessarily involves the private sector. Pure public finances is the bit that is often focused on, it's politically charged, it's symbolically hugely important. But its role is always going to be much smaller than the role of the private sector," he said.
"You just consider that total global aid is around $162 billion a year and it is estimated that the nature gap alone is around $600 billion a year, some people say $700 billion a year.
"So, we could quadruple total global aid and spend every penny of it on nature and we would still have a bit of a mountain to climb.
"So, we're going to rely on the private sector and where I think the public money can, and absolutely must, make a huge difference will be in stimulating and leveraging investments from the private sector and there are lots of ways in which that can be done."
'Billions and billions and billions'
Mr Goldsmith's challenge to fund managers, investors and policy makers gathered at the Climate Investment Summit was to come up with ways to make the carbon market more transparent and efficient.
"One of the sources of finance for the restoration and protection of the world's forests, mangroves and key ecosystems is going to have to come from carbon markets," he said.
"The problem today is that it's a bit of a wild west. It's a bit chaotic,
"The corporates, the clients, the customers, if you like, are nervous about dipping their toes in the water because they worry about being accused of greenwash or they worry about a backlash and the system is such that really no component of it yet has confidence.
"We need to find the key that's really going to unlock what we know is billions and billions and billions in finance just waiting to be invested in what is the most important challenge our species has ever faced."
