Following the US Presidential election and the Net Zero China 2060 target in particular the “inevitability” of policy Response to climate change looks validated. Exactly what, when and how remains the issue. The PRI have updated the core Policy Forecasts and considered potential accelerations as well as implications for Investors. As net zero commitments accelerate across the globe, the new IPR 2021 Policy Forecasts outline the policies that are expected to be deployed by 2025 to begin meeting those targets. It offers markets the crucial next layer of detail on when, where and how these commitments will start to shift the macroeconomic context through forceful policy implementation across a range of key policy levers.
In 2019, the PRI commissioned a ground-breaking analysis of inevitable policy responses by governments around the world, to meet the 1.5 degrees Paris ambition. This paper outlines these policies, which along with the IPR 2019 Forecast Policy Scenario, lead to some of the world’s largest institutional investors and financial institutions committing to using it as a scenario. The IPR 2021 policy forecast is a thoroughly revised and updated set of policy forecasts, reflecting even further detailed research on current and proposed policies, with input from a global survey of policy experts. This forms the basis for a new Forecast Policy Scenario later in the year.