The Finance Marathon: A Race to Paris

The Finance Marathon: A Race To Paris

Let’S Talk About Finance And The Paris Agreement. So, There Was This Marathon In Chicago, And This Kenyan Guy, Kelvin Kiptum, Totally Smashed The World Record. But Get This, He Was Actually Behind At The Halfway Mark! It’S Called A ‘Negative Split’ When You Run The Second Half Faster Than The First, And That’S Exactly What He Did. He Broke The Record And Got Super Close To The Two-Hour Mark. It’S Like A Metaphor For Finance And The Paris Agreement, You Know?

At The European Central Bank (ECB), They’Re All About The Number ‘Two’. They Want To Keep Inflation At 2% And Stay Below 2 Degrees Celsius Of Global Heating. The Paris Agreement Is All About That Too. But Here’S The Thing, We’Re Halfway Through The Decade For Sustainable Finance, And It’S Not Looking Great. We Might Not Make It Below That 2-Degree Mark, But Hey, Kelvin Kiptum’S Record Gives Us Hope. It Shows That With A ‘Negative Split’ Mindset, We Can Still Achieve Our Goals.

The EU Has A Clear Plan To Reach The Paris Agreement Goals. They’Ve Got The European Climate Law And The Fit For 55 Strategy, Aiming For A 55% Reduction In Emissions By 2030. But It’S Gonna Cost A Lot – Like €1.25 Trillion Over 10 Years. That’S A Big Investment, But It’S Worth It. The Benefits Outweigh The Costs, Especially When You Think About The Alternative Of Doing Nothing.

So, Where Are We At The Halfway Point? Well, We’Ve Made Some Progress, But We’Re Not On Track For A Smooth Transition. Finance Is Lagging Behind, And That’S A Problem. The Stock Markets Need To Do More To Support Green Technologies, And There’S A Lack Of Harmonisation In The EU. Plus, Private Finance And The Public Sector Need To Step Up Too.

When It Comes To Banks, They’Re Making Progress In Managing Climate And Environmental Risks, But They’Re Not There Yet. The ECB Is Pushing Them To Step Up Their Game And Meet The Requirements By The End Of 2024. It’S A Tough Race, But They Need To Achieve A ‘Negative Split’ Too.

In The End, It’S All About Taking Meaningful And Urgent Action. We Need To Push For ‘Negative Splits’ In All Areas To Get Finance Fit For Paris. It’S A Tough Race, But With The Right Mindset, We Can Still Make It. Let’S Go!