Finance sector will not drive global net zero push

Significance

The declaration, which does not involve commitments to specific actions, is a statement of support for the ambition of scaling up the use of (relatively clean) nuclear power expressed at last year's COP28 climate summit. It does not, however, indicate a strengthened commitment by the financial sector to drive the global economy towards net zero emissions.

Impacts

• Higher carbon prices would do more than ESG policies to drive investment in the green transition.
• More industry-specific regulation would also help, but at the risk of a political backlash.
• Developing global crises will continue to divert corporate focus away from climate investment.