Reflections on Glasgow and COP26

Reflections on Glasgow and COP26

• The Climate Investment Funds (CIF) Capital Market Mechanism (CCMM) initiative which plans to issue bonds in 2022 to raise finance for projects in clean energy and sustainable infrastructure in developing and emerging economies mobilizing up to $700 million annually. • 36 countries agreed to mandatory actions to ensure that investors have access to reliable information about climate risk to guide their investments into greener areas. And to ensure common standards, 38 countries welcomed the announcement of a new international body, the International Sustainability Standards Board (ISSB). • Over $130 trillion of private finance is now committed to science-based net zero targets and near term milestones, through the Glasgow Financial Alliance for Net Zero (GFANZ). • GFANZ members are required to set robust, science-based near-term targets within 12-18 months of joining, and more than 90 of the founding institutions have already done so. A key focus of GFANZ is supporting developing countries and emerging markets. Global climate reporting standards

• The IFRS Foundation announced the establishment of an International Sustainability Standards Board (ISSB) to develop comprehensive global baseline sustainability reporting standards under robust governance and public oversight. The IFRS Foundation confirmed agreements with existing sustainability reporting bodies to create the global standard-setter for sustainability disclosures for the capital markets. • The Foundation also published two prototype standards to enable the ISSB to rapidly build on existing frameworks – including the Task Force on Climate-Related Financial Disclosures (TCFD) – when developing its standards. Standards will be subject to full public consultation and can be considered for adoption by jurisdictions on a voluntary basis. Jurisdictions will have their own legal frameworks for adopting, applying or otherwise making use of international standards. • Finance Ministers and Central Bank Governors from 38 jurisdictions from across 6 continents (see below) publicly welcomed the announcement of the establishment of the ISSB and its work