COP25: Some reasons to be cheerful

The 2019 United Nations Climate Change Conference – COP25 – brought together in Madrid thousands of policymakers, researchers, activists and journalists aiming at forging a response to the climate emergency. 

At the express invitation of the Spanish government, Foro Impacto – the secretariat of the Spain National Advisory Board, which represents Spain at the Global Steering Group for Impact Investment (GSG) – had the opportunity to actively participate in one of the most important events of the year. For more than two weeks in December we could learn and share our vision on the key role that impact investment should play in responding to the growing urgency of the climate emergency.

It forces every one of us to take an active role to drive change and mobilise, not only public, but also private capital towards solving the most urgent challenges 

Among the activities organised by Foro Impacto, one stand-out session was “Impact Investment with Climate Focus” where Robeco Institutional Asset Management, CaixaBank, TriCiclos and the Israeli artist Eyal Gever, moderated by Foro Impacto, shared their views on the global rise of impact investment to achieve more ambitious and inclusive climate action. 

Foro Impacto also invited Gever (pictured top), who uses art and technology to raise awareness about ecology and global issues, to join a keynote presentation that served as the official launch in Spain of his new project, HOPE. In partnership with the GSG, Gever aspires to install six interactive, interconnected globes in public spaces visualising different datasets about global environmental and social issues and showing how impact investment initiatives contribute to addressing them.

A lost opportunity – but there is still hope

Two weeks of talks at COP25 ended with limited agreements, with major decisions pushed into 2020 – leaving a feeling of lost opportunity and making explicit the gap between scientists and governments.  

However, there is still hope, thanks to the increasing importance that sustainable finance acquired during the Summit.

With current investment levels, it is estimated that developing countries alone are already facing an annual gap of $2.5tn to meet the UN Sustainable Development Goals. Only by counting on private investment we will be able to reach $7bn required per annuum to achieve them. 

Our presence at COP25 pushed this vision forward, and other initiatives were put in place at the event too. For instance, over 500 Certified B Corporations publicly committed to accelerating the reduction of their greenhouse gas emissions leading to net zero by the year 2030. Also, the main Spanish banks, representing 95% of the banking system in the country, pledged to reduce the carbon footprint in their credit portfolios in line with the United National Environment Programme Finance Initiative.

This is alongside other relevant initiatives taking place in Spain, like our recent membership of the GSG, an independent organisation that brings together the national advisory boards on impact investment of 32 countries plus the EU, with the objective of catalysing investment to address societal challenges. 

All this leads us to maintain a level of optimism for the coming years. It also forces each and every one of us to take an active role to drive change and mobilise, not only public, but also private capital towards solving the most urgent challenges facing our society and planet. It’s time to act! 

The Spain NAB and its secretariat, Foro Impacto, are prepared and committed to continue leading the change to achieve – in the words of Sir Ronald Cohen – “the incorporation of impact into the way we think, act and make decisions”. 

Jose Luis Ruiz de Munain is executive director of Asociación Foro Impacto.