The increasing use of renewable energy is key to limiting climate change to under 2°C, the threshold set by the Paris agreement. If this limit is exceeded, climate change is expected to have devastating and irreversible impacts. Electricity generation is a vital part of meeting the goals as it reduces the amount of fossil fuels burnt for energy. The IEA predict that by 2040 renewables will make up 40% of total power generation. Denmark current leads the field in renewable energy generation with 59% of its power coming from renewables.
In 2015 G20 countries asked the Financial Stability Board (FSB) to review how the financial sector can better take account of climate-related issues. The FSB established the Task Force on Climate-related Financial Disclosures (TCFD) to develop consistent and coherent guidance for companies to disclose their climate-related risks. Last month the TCFD released its final “recommendations for consistent and voluntary climate related financial disclosures”.
Topics: Climate Change