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Topics: Climate Change
Organisations: IIGCC

Climate Change Greenhouse Gas Energy efficiency

26 February, 2014

Dear Head of Government The Institutional Investors Group on Climate Change (IIGCC) represents 88 European pension funds, insurance companies and asset managers with approximately €7.5 trillion of assets under management. Our holdings include all the major listed industrial companies in Europe. We welcome the European Commission’s 2030 climate and energy framework outlined in January as a ignificant first step towards turning the EU’s vision for a low-carbon economy into reality. Delay in agreeing the framework would increase uncertainty for investment in the European energy sector and we strongly encourage you and the other Heads of State to adopt the proposals at the European Council meeting at the end of March. As discussions progress the key issues from an investor perspective are as follows: 1. Emissions reduction target: We support 40% as a minimum greenhouse gas emissions reduction target by 2030 and would encourage a more ambitious target once a global climate deal has been agreed. 2. Reform of the EU Emissions Trading Scheme (ETS): A stable and economically meaningful carbon price ignal is essential to low-carbon investment including renewable energy. We welcome the proposal to introduce a reserve mechanism in the ETS from 2021. There are concerns however that the re-introduction of “backloaded” allowances before 2021 could weaken the price. If further analysis of this issue confirms this to be the case we would support the earlier introduction of the reserve mechanism. 3. Carbon leakage: Investors take seriously genuine competitiveness concerns related to “carbon leakage”. However, energy intensive companies in which our members are shareholders have told us that the ETS has not been a significant factor to date. The economic efficiency of the ETS, the reinvestment of ETS auction revenues and ongoing carbon leakage protections mean that the ETS is not likely to undermine Europe’s competitiveness in the next decade either. 4. Energy efficiency: Energy efficiency must play a key role in a climate and energy policy framework to 2030 and beyond. We agree with the Commission that energy efficiency enhances competiveness, security of upply, and the transition to a low-carbon economy. We would encourage the continued strengthening of the regulatory framework for energy efficiency, especially in the built environment, when the Commission reviews the issue later this year. We urge Heads of State to agree a strong emissions reduction target next month and to advance reform of the ETS. Decisive action would send a positive signal to investors and leave the EU well-placed to influence global climate talks later this year. We would welcome further dialogue on this issue to ensure that the full range of business interests is heard. Please contact, IIGCC’s CEO Stephanie Pfeifer at spfeifer@iigcc.org. Yours sincerely

Donald MacDonald Chairman, IIGCC, Trustee Director of BT Pension Scheme

Institutional Investors Group on Climate Change Ltd. Co Registration Number: 7921860

Tel +44 (0) 207 960 2987 Email spfeifer@iigcc.org Web www.iigcc.org

Postal Address

Registered Address

Second Floor, Riverside Building


County Hall, Belvedere Road

One Crown Square

London SE1 7PB

Woking, Surrey GU21 6HR

IIGCC Membership February 2014

Aberdeen Asset Management

Hermes GPE LLP



AP1 (First Swedish National Pension Fund)

HSBC Investments

AP2 (Second Swedish National Pension Fund)

Impax Asset Management

AP3 (Third Swedish National Pension Fund)

Insight Investment

AP4 (Fourth Swedish National Pension Fund)

Joseph Rowntree Charitable Trust

APG Asset Management

Kent County Council Pension Fund


Kleinwort Benson Investors

Aviva Investors

Legal & General Investment Management

AXA Real Estate

London Borough of Hounslow Pension Fund

Baptist Union of Great Britain

London Borough of Islington Pension Fund

BBC Pension Trust

London Borough of Newham Pension Fund

Bedfordshire Pension Fund

London Pensions Fund Authority


Marguerite Advisor S.A.

BMS World Mission

Mayfair Capital Investment Management

BNP Paribas Investment Partners

Merseyside Pension Fund

BT Pension Scheme

Mercer Global Investments Europe Limited

CB Richard Ellis

Mn Services

CCLA Investment Management

Nordea Investment Funds

Central Finance Board of the Methodist Church


CF Partners (UK) LLP


Christian Aid

The Pensions Trust

Church Commissioners for England

PGGM Investments

Church Investors Group South Africa

Pictet Asset Management SA

The Church of England Pensions Board


Church of Scotland Investors Trust

Platina Partners

Church of Sweden


Climate Change Capital

Railpen Investments

Co-operative Asset Management

Representative Body of the Church in Wales

Corporation of London Pension Fund


Dragon Capital Group Ltd.


Earth Capital Partners

Sarasin & Partners LLP

Environment Agency Pension Fund

Scottish Widows Investment Partnership

Environmental Technologies Fund

Servite Friars


South Yorkshire Pensions Authority

F&C Management Ltd

Temporis Capital

Ferrostaal Capital

The Roman Catholic Diocese of Plymouth

First State Investments

The Roman Catholic Diocese of Portsmouth

Five Oceans Asset Management

United Reformed Trust Ltd.

Generation Investment Management LLP

Universities Superannuation Scheme

Greater Manchester Pension Fund

West Midlands Metropolitan Authorities Pension Fund

Grosvenor Fund Management

West Yorkshire Pension Fund

Henderson Global Investors

WHEB Group


The William Leech Foundation

Document Info

  • Language: en
  • Author: Morgan LaManna
  • Created: February 26, 2014 2:04 PM
  • Last Modified: February 26, 2014 2:04 PM
  • Pages: 2
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  • Dimensions: 595.32 × 841.92
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  • SHA1 Hash: 9e20cb5a684fce55db086257a7f370dbda559412