Positive Money Europe🌍 4 November marked the 7th anniversary of the entry into force of the #ParisAgreement. How far have we come and what more needs to be done to combat #climatechange? A 🧵
The latest #IEA report gives us hope - we’re on track to see all fossil fuels peak before 2030. The #EnergyTransition is inevitable, it’s just a matter of how soon we make it happen. #WEO2023
However, the financial system is lagging behind.
Despite the latest #ECB climate stress tests confirming the urgent need to align our economies with the Paris agreement, ECB policy choices seem to be moving in the opposite direction.
⚠️ Higher interest rates pose a real threat to green investments and risk slowing down the energy transition. We need financial policies that support, not hinder, our efforts towards a sustainable future.
Read more in our latest blog on the topic: https://www.positivemoney.eu/2023/10/high-interest-rates-green-transition/
High interest rates are undermining the green transition
There is evidence that the decision by central banks to raise interest rates is already slowing down investments in the renewable energy sector, thereby undermining the green transition. This is in direct contradiction to the latest climate stress test of the European Central Bank (ECB), which calls for a faster switch to a greener economy. It’s time for the ECB to rethink its approach, as opposed to raising interest rates without regard to the outcomes.
The #ECB has a crucial role to play in supporting #EU environmental efforts.
Seven years after the #ParisAgreement, will it finally step up? The clock is ticking…⏰