Exclusive: U.N. climate czar Carney in new bid to get private equity onboard

Financial institution of England governor Mark Carney speaks throughout a information convention on the Financial institution of England in London, December 1, 2015.REUTERS/Suzanne Plunkett

NEW YORK, Could 9 (Reuters) – United Nations local weather envoy Mark Carney plans to satisfy with main personal fairness companies in London on Wednesday, courting a nook of the monetary world that has been reluctant to hitch his initiative, based on folks aware of the matter.

Most main buyout companies have refused to hitch Carney’s Glasgow Monetary Alliance for Web Zero (GFANZ), a coalition of property managers, banks and insurance coverage companies representing $130 trillion in property.

A number of the personal fairness companies level to different local weather initiatives they’ve adopted. They argue privately that their enterprise of continually shopping for and promoting firms makes it tough to offer a agency dedication to attain GFANZ’s principal aim of decreasing carbon emissions of their funding portfolio to zero on a internet foundation by 2050, consistent with the Paris local weather treaty.

Carney, a former governor of the Financial institution of England who launched GFANZ final yr, is scheduled to satisfy in London on Could 11 with senior executives from some the world’s largest personal fairness companies, together with Blackstone Inc (BX.N), BC Companions and KKR (KKR.N), the sources mentioned.

The sources requested anonymity as a result of the assembly is confidential. A spokesperson for KKR was not instantly accessible to remark.

Some 164 personal fairness companies have joined the Initiative Local weather Worldwide (iC Worldwide), an affiliation of buyout companies that “search to raised perceive and handle the dangers related to local weather change”, based on its web site.

iC Worldwide calls on its members “to contribute” to serving to the world meet the target of the Paris settlement to restrict world warming to 1.5 levels Celsius above the pre-industrial common, however in contrast to GFANZ it units no binding objectives.

GFANZ has mentioned it plans to launch a sequence of frameworks, white papers and different steerage to assist its members attain their local weather objectives because it prepares for the following U.N. local weather summit, in Egypt in November.

Reporting by Greg Roumeliotis in New York and Simon Jessop in London, modifying by Ed Osmond

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