During the quarter, and in the hottest year on record, the United Nations held its 28th annual Climate Change Conference in the unlikely oil producing nation of the United Arab Emirates. In a first, participating countries committed to moving away from carbon energy sources to mitigate the worst effects of climate change and reach net zero by 2050. Supporters called it the “beginning of the end of the fossil fuel-driven world economy.” The lack of a clear commitment to phase outs or phase downs of fossil fuel usage, however, opened it to criticism that there were too many loopholes in the agreement to rein in fossil fuel interests. Furthermore, China and India did not sign the pledge to triple their output of renewable energy and committed to coal power instead. The agreement will ensure a steady flow of capital into renewable energy technology and innovation that we would expect to be supportive of impact-oriented portfolios.
