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This Call to Action is a reminder to policymakers to act decisively and urgently to manage systemic risk, by committing to and implementing, national policy reforms consistent with 1.5°C carbon budgets and development pathways. With record breaking levels of warming over the past year and global GHG emissions continuing to rise, asset owners are deeply concerned about the stability of capital markets and the systemic risk that climate poses to their core business of providing secure retirements, comprehensive insurance offerings, and predictable returns.

The Alliance calls on policymakers and regulators to urgently enact the following measures to manage down systemic risk and unlock capital for a just transition to net zero:

• Undertake systemic interventions that can deliver demand reductions for oil and gas and increase low- and zero-emissions energy supply through economy-wide action. Inefficient fossil fuels subsidies must be phased out, while giving adequate consideration to workers and communities affected by the transition.
• Design and implement appropriate and equitable carbon pricing mechanisms, aligned with their Paris Agreement commitments.
• Implement clear policy frameworks, strong government commitments, ambitious targets, and regulatory requirements for detailed and credible transition plans that can help overcome barriers to net-zero investment.
• Phase-out all unabated existing coal-fired electricity generation in accordance with 1.5°C pathways.
• Scale blended finance to facilitate global finance flows to emerging markets and development economies (EDMEs), which are particularly vulnerable to climate change.