Major investors have urged the United Nations to create a binding international treaty that will require global governments to get together and hunker down over the climate change issue.
The 285 investors, who have assets of more than $20 trillion, asked global leaders at the United Nations Climate Change Conference for a binding treaty, The Associated Press reported.
The investors want policy makers to avoid retroactivity, the Financial Times reported.
A clear stance on what to do about climate change, investors argue, will attract more investors.
Current levels of investments in low-carbon technology and infrastructure are substantially lower than the $500 billion per year deemed necessary by the International Energy Agency to hold the increase of global average temperatures below 2 degrees Celsius - the target agreed in Cancun last year, investors said in a statement.
Their statement included domestic and international policy recommendations on climate change that they believe will help governments acquire private sector investments.
Domestic suggestions include making sure that effective policies are in place and well-designed.
International suggestions to governments include increasing efforts to decrease emissions from deforestation and forest degradation.
The group also cited the importance of governments continuing to work towards a binding international treaty that will set goals for reducing greenhouse gas emissions.
Munich Re's Wolfgang Engshuber, who is also a member of the UN Principles for Responsible Investment Advisory Council and
Climate change will transform economies throughout the world, creating new opportunities for investors, UN Principles for Responsible Investment Advisory Council chair Wolfgang Engshuber said in a statement. However, these will gain traction only if governments play their part in laying down well-designed and effective climate change policies. Without such a supportive regulatory environment, we will not see the level of investment that is needed to transform the world's energy supplies and transport systems.