Section 1 – What does this mean?
This goal sounds underwhelming in that it’s only aiming to do what has been agreed upon for many years. However, after progress in Glasgow on the $100 billion that had already been promised, but not yet delivered, it’s crucial that the money is handed over to help less developed nations invest in cutting carbon and adapting to climate change.
Expect this to be another source of controversy at the conference because money always is. There is an open question about whether $100 billion is anywhere near enough to provide what is required, but given that developed countries have failed to deliver it so far, it’s important to make progress and build trust between developed and developing nations.
Section 2 – What this means for you
Many people overlook the impact that our money has on the climate.
Our personal bank accounts and investments are all part of the financial system. As a result, the money we save or invest may be invested in fossil fuel companies, and our pension funds may also be invested in the stock market, which often include shareholdings in fossil fuel companies. We can decide how our money is used, and whether it funds old power, such as oil and gas companies, or is invested in new low-carbon technologies.
Several banks are making Net Zero commitments for 2050, but this is too far away. Look for organisations trying to cut emissions from financing by 50% by 2030, in line with the Paris agreement and the same targets individuals are trying to achieve.
Section 3 – How does it work?
The same goes for investments in the stock market, so every £ or $ you save may create more fossil fuels.
Fossil Fuel Facts
Section 4 – Greening your money
To help make your money greener, here are a few questions you can ask to help you find out more about your bank.
You can also look beyond the banks to institutions like Credit Unions in the USA, Building Societies in the UK, and other similar organisations, usually owned by their members. These lend to people, not companies. As a result, they can be a good fossil fuel free option.
Whatever you choose, try to avoid banks that lend to companies that mine coal, burn coal for electricity, or drill in the Arctic.
Section 5 – Greening your pension
Pensions, especially for people who have been working for a long time can have a significant carbon footprint. If you’re working hard to reduce your own carbon emissions, it can be counterproductive to support companies increasing them.
You can also switch to more sustainable investing by looking for ESG funds. They might still have some fossil fuel companies in them, but it should be much less.
Greening your money is one of the toughest steps, it takes time, but the impacts can be significant.
Thank you to our partner Giki for their contribution to this guide to COP27 Goal 3.