Today is Earth Day, an annual event to demonstrate support for the environment worldwide.
US President Joe Biden is hosting a leaders’ summit where he may announce tougher emission targets for the country.
READ: UK to announce more ambitious climate targets, IEA warns of massive carbon emissions increase this year
The consensus is forming around a 50% reduction in US emissions by 2030 and targeted net-zero emissions by 2050, according to ING Economics.
China has already pledged to achieve net-zero emissions by 2060 and the attendance of President Xi may show the Asian powerhouse is willing to cooperate on some front.
Last week, he was highly critical of the EU’s plans for a carbon border tax and has since suggested making investment in green technology a defining characteristic of the Belt and Road Initiative.
Economists expect “cooperation, tinged with criticism”.
According to UBS, markets are facing an “environmental credit crunch” so companies will be pressured to solve their issues with sustainability.
The investment bank said that urgent action is needed to combat the growing climate crisis and there are strong investing opportunities in projects dedicated to this.
“Companies that are on the right side of history, when it comes to climate change and reducing their own carbon footprint, will better be positioned to prevent climate risks, deal with tighter regulations, and avoid reputational concerns,” Solita Marcelli, UBS Global Wealth Management’s chief investment officer for the Americas, was reported as saying by MarketWatch.
“Companies that emerge as leaders in developing solutions to tackle environmental challenges could really offer attractive long term growth prospects.”
“We think sustainability will continue to grow as a core part of the decisions that investors make as they build out their portfolios.”