Climate Change: The alternative is unimaginable
Tony Owens, technical director, Cundall looks at the importance of the recent COP26
The COP26 summit was an opportunity for the parties to commit to the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Since the 2015 Paris Agreement, many countries have made commitments on climate action and many have committed to reach Net Zero emissions by 2050.
Most of the global community have agreed to work together to limit global warming to well below two degrees, and to adapt to the impacts of a changing climate and to make finance available to assist with the transition from fossil fuels to alternative energy sources. The International Energy Agency predicted that carbon emissions would reduce by just 40% by the middle of the century based on current progress.
Significant investment is required to facilitate the transition to a low-carbon economy. Scaling up investments to finance the transition from fossil fuels to renewables, as well as smart power networks, energy efficiency measures, and electrification in sectors including transportation, buildings, and industry, will be required to transform the world’s energy systems.
According to the International Energy Agency, worldwide energy investments are currently over $2tn per year, or 2.5% of global GDP (IEA). To achieve net zero CO2 emissions by 2050, this must climb to $5tn, or 4.5% of GDP, by 2030 and remain there until at least 2050. The bulk of this money will go towards decarbonising electricity generation and infrastructure and to make power networks better suited to much higher volumes and variability of renewable energy.
Without a global climate policy and a joint commitment by all, today’s minor emitters will develop into significant emitters as their populations and incomes rise. These are also the countries that are typically most hit by the effects of climate change, making transition costs more difficult to bear due to rapidly rising energy demands and limited financial flexibility to finance green projects.
Green or climate finance to fund emissions reduction investments in developing countries would allow the burden to be more evenly shared and help the global economy achieve net zero emissions.
China, the EU, Japan, Korea, and the United States have all pledged to achieve net zero emissions by the middle of the century, yet the current energy crises in some of these regions suggest that the transition from fossil fuels will not happen in time. Investment in renewable energy projects is essential if the Paris Agreement commitments are to be achieved.
As the world starts to recover from the pandemic, it must now tackle climate change and make the commitment to change for everyone’s future. The alternative cost is unimaginable.
