'Final blow' to Obama's legacy
President Donald Trump's decision to take the US out of the 2015
Paris Climate Change Agreement "implies financial and economic loss for
the international community" according to investors, who have criticised
his latest move.
Trump said last night that the accord "punished" the US and would cost millions of American jobs.
According to the BBC, he said he was prepared to negotiate a new agreement or re-enter the accord on improved terms.
"I was elected to represent the citizens of Pittsburgh, not Paris," he said.
According to the BBC, he said he was prepared to negotiate a new agreement or re-enter the accord on improved terms.
"I was elected to represent the citizens of Pittsburgh, not Paris," he said.
However, the Global Sustainable Investment Alliance (GSIA), a
collaboration of sustainable investment bodies from around the world,
has hit out at the decision.
The organisation, which represents $12trn of AUM, said it
urges the Administration to reconsider, stating the move would slow
progress to tackle climate change.
Secretariat of the GSIA, and CEO of the UK Sustainable
Investment and Finance Association, Simon Howard, said: "Climate change
is the gravest threat to mankind's future and the Paris Agreement is the
best hope for global mitigation.
"By withdrawing, President Trump will slow progress, but not stop it."
Lisa Woll, CEO of US SIF, The Forum for Sustainable and
Responsible Investment called the move "unequivocally the wrong
decision [which] may lead to catastrophic harm to the environment, our
country's international reputation, and progress towards a vibrant,
innovative and low carbon economy.
"We urge the Administration to
reconsider its decision, which is certain to damage the US economy, the
health and safety of the American people and America's standing in the
world."
Meanwhile, asset managers also expressd their concerns about
the decision, but stated that "markets can now move ahead with clarity
on the US position".
Matt Christensen, global head of responsible investment at
AXA IM, said: "This decision is significant as it is a ‘final blow' to
Obama's climate legacy, but also highly concerning as the US is a major
greenhouse gas emissions contributor.
"In the mid-term, this decision is more symbolic than
material. Most of the negative impact from this decision will be on the
US itself and not so much on global climate action, which should keep
its momentum regardless.
"The US may be surprised to find trade negotiations more difficult as an outcome of this action."
Steve Waygood, chief responsible investment officer at Aviva
Investors, added: "The Paris agreement is the pinnacle of international
diplomacy. As a global investor and insurer, we urge governments to
look forwards to a carbon neutral economy and not backwards to a fossil
fuel past.
"President Trump's decision to
withdraw is hence troubling, and implies financial and economic loss for
the international community, as well as the US.
"But crucially, it does not equate to the unravelling of the
hard-won accord. Markets can move ahead with clarity on the US
position."
A number of US indices rose on the back of Trump's latest move, although it had been anticipated by markets.
The S&P 500 and the Nasdaq closed at new highs, according to the BBC, having already been climbing throughout the day.
Peabody Energy, the US's largest publicly-traded coal
company, saw its shares slide 0.66% although oil stocks, including
ExxonMobil and Chevron climbed.
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