The uses and abuses of green finance

ALAS, THE COP26COPGFANZ summit in Glasgow is shaping up to be a disappointment. The hope that emerging markets, which belch out much of the world’s greenhouse gases, would announce ambitious proposals is being dashed. The plans of China, India and Brazil all underwhelm. There is no sign this will be the that kills coal, as Britain, the host, wanted. World leaders have still not agreed to stop subsidising fossil fuels.But one area where enthusiasm is growing is climate finance. Financial institutions representing nearly $9trn in assets to uproot deforestation from their investment portfolios. The most striking announcement has come from the Glasgow Financial Alliance for Net Zero (), a coalition co-chaired by Mark Carney, a former governor of the Bank of England. Its members, which include asset owners, asset managers, banks and insurers, hold about $130trn of assets. They will try to cut the emissions from their lending and investing to net zero by 2050. Can the financial industry really save the world?