GFANZ facts for kids
The Glasgow Financial Alliance for Net Zero, known as GFANZ, is a large group of banks and financial companies. It was created in 2021 during a big climate meeting called COP26 in Glasgow, Scotland. GFANZ aims to help the world reduce its carbon pollution.
GFANZ works to support the goals of the Paris Agreement. This important agreement wants to limit how much the Earth's temperature rises, ideally to no more than 1.5 degrees Celsius. GFANZ helps financial companies find ways to reach "net-zero" emissions. Net-zero means balancing the amount of greenhouse gases put into the atmosphere with the amount taken out.
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What is GFANZ?
GFANZ is a global team of financial groups. They are all working together to speed up the process of making the world's economy cleaner. This means reducing the amount of carbon dioxide and other gases that cause climate change.
Who Leads GFANZ?
Important leaders help guide GFANZ. Michael Bloomberg and Mark Carney are two of the main leaders. They are special envoys for the United Nations, focusing on climate action and finance. Mary Schapiro also plays a key role as a leader.
What Does Net-Zero Mean?
Net-zero emissions means that any greenhouse gases released into the atmosphere are balanced by removing an equal amount. For example, if a company produces some carbon, it also works to remove that same amount from the air. This helps to stop global warming.
How Companies Join GFANZ
To become a part of GFANZ, companies must meet certain rules. They need to be approved by a program called the UN Race to Zero campaign. This campaign encourages businesses to commit to cutting their emissions.
Rules for Members
Companies joining GFANZ must follow science-based plans to reach net-zero. This means their plans are based on scientific research about climate change. They also need to set goals for reducing emissions by 2030. Plus, they must openly share their progress and how they are counting their emissions. This helps everyone see if they are truly making a difference.
GFANZ and Other Groups
GFANZ includes several other important groups that are also working towards net-zero. These include:
- The Net Zero Asset Managers Initiative
- The UN-convened Net-Zero Asset Owner Alliance
- The Net-Zero Banking Alliance
These groups bring together different parts of the financial world, like those who manage investments and banks. They all share the same goal of a cleaner, greener future.
