Climate Progress Dashboard update: EU carbon emission reforms slow global warming
Higher carbon prices in Europe have helped slow the expected pace of global warming, Schroders Climate Progress Dashboard has calculated.
Reforms last November reducing the amount of carbon dioxide that can be emitted in the European Union (EU) have helped the world’s expected temperature rise to edge down to 4.0°C as of 31 March 2018, a slight fall from 4.1°C recorded at the end of 2017.
This is the first temperature drop identified by the Climate Progress Dashboard since its launch last year.
The dashboard is designed to give investors an insight into the progress governments and industries are making towards meeting the 2°C temperature rise target set by the Paris Agreement in 2015 and the transition to a low-carbon economy.
Andrew Howard, Head of Sustainable Research, Schroders, said:
“Spurred in part by reforms to the EU’s carbon allowances last Autumn, carbon prices have risen sharply in recent months. They still have a long way to go before providing a real incentive to cut emissions on the scale needed to limit temperature rises to two degrees.
“This quarter has marked the first drop in the temperature rise implied by the Climate Progress Dashboard, but the improvement is marginal relative to the reductions still needed to limit the increase to safe levels.”
By the end of March, exchange prices for carbon in the EU had reached over $15/tonne for the first time since 2010. Schroders has estimated that carbon prices will have to reach close to $100/tonne to incentivise emission reductions on the scale needed to limit temperature rises to 2°C.
Also moving in the right direction was the progress of electric vehicles, which saw its implied temperature trajectory fall from 3.9°C to 3.6°C between the end of December and March, as sales of new vehicles continued their growth trend, albeit at a slowing pace as the technology becomes more established.
However, public concern globally for climate change issues ebbed during the latest quarter. An influential survey in the US found that worries over the impact of global warming had waned, while internet searches for ‘climate change’ have fallen to almost half the highs reached 18 months ago.
Schroders Climate Progress Dashboard key:
Schroders Climate Progress Dashboard:
 See http://news.gallup.com/poll/231530/global-warming-concern-steady-despite-partisan-shifts.aspx?g_source=link_NEWSV9&g_medium=TOPIC&g_campaign=item_&g_content=Global[(2520Warming) was not found]2520Concern[(2520Steady) was not found]2520Despite[(2520Some) was not found]2520Partisan%2520Shifts for further details
For further information, please contact:
Andy Pearce, Institutional PR Manager Tel: +44 (0)207 658 email@example.com
Estelle Bibby, Senior PR Manager Tel: +44 (0)207 658 firstname.lastname@example.org
Note to Editors
For trade press only. To view the latest press releases from Schroders visit: http://ir.schroders.com/media
As a global investment manager, we help institutions, intermediaries and individuals meet their goals, fulfil their ambitions, and prepare for the future. But as the world changes, so do our clients’ needs. That’s why we have a long history of adapting to suit the times and keeping our focus on what matters most to our clients.
Doing this takes experience and expertise. We bring together people and data to spot the trends that will shape the future. This provides a unique perspective which allows us to always invest with conviction. We are responsible for £447.0 billion (€503.6 billion/$604.7 billion)* of assets for our clients who trust us to deliver sustainable returns. We remain determined to build future prosperity for them, and for all of society. Today, we have 4,600 people across six continents who focus on doing just this.
We are a global business that’s managed locally. This allows us to always keep our clients’ needs at the heart of everything we do. For over 200 years and more than seven generations we’ve grown and developed our expertise in tandem with our clients’ needs and interests.
Further information about Schroders can be found at www.schroders.com.
Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.
*as at 31 December 2017