Are forests the next big theme for sustainable investments?

REACHING the aims of the Paris Agreement and limiting the global rise in temperatures to well below 2 deg Celsius will require cutting CO2 emissions to net zero by 2050.

Net zero has become a key focus of organisations, governments and businesses worldwide. Countries are strengthening their climate pledges in advance of the COP27 meeting in Egypt later this year, and governments are designing regulations to help achieve these pledges – for example, by enshrining net-zero goals in law.

Cutting emissions requires a major focus and effort across the economy. The Intergovernmental Panel on Climate Change says we must invest in activities that remove CO2 from the atmosphere if we are to meet the Paris aims. However, it is also important to stress that natural carbon cycles and nature-based solutions will be a key part of the response to climate change.