Publication of the Net Zero Investment Framework

The PAII will review consultation responses in the coming months. The feedback received through the consultation will be combined with the results from the portfolio testing stage of the initiative where the IIGCC is applying the Framework to five portfolios to test alignment and the financial implications.

The consultation and portfolio testing results will be integrated into a finalised version of the Net Zero Investment Framework which is expected to be published in Autumn 2020.

Phase II of the Paris Aligned Investment Initiative

Phase II of the PAII will broaden the scope of the work carried out in the first phase and look to address some of the technical limitations and challenges uncovered. In Phase II, IIGCC and the PAII intend to:

Broaden the scope of the Framework to include two additional asset classes: infrastructure and private equity
Consider how investors can align portfolios to the adaptation and resilience goals of the Paris Agreement
Develop additional guidance to support implementation of the Framework

Phase II also aims to address key analytical gaps identified during Phase I, including:

Identifying and measuring material scope 3 emissions
Treatment of offsetting and negative emissions technologies
Potential for methodologies that capture relative impact of climate solutions investment, for example, avoided emissions
Methodologies to assess emissions reductions achieved at the asset level
Pathways for increasing investment in climate solutions

A number of these elements will be developed through the IIGCC Corporate Programme.

Given the many groups focused in these areas, IIGCC is interested to hear from organisations and experts that may want to partner in, or contribute to, this work. If you would like to be involved or learn more, please contact Danielle.

Consultation on the PAII draft Net Zero Investment Framework