The G20 declaration in India last week looked to pursue certainty in the uncertain global context. Worldwide, state governors have been aware of hardness tackling with significant challenges from inflation, unemployment to social isolation caused by social media. Climate crisis makes anxiety sentiment exacerbated, which is tuning into the top priority issue in the interest of all parties and cooperation.
The month of August showed hectic diplomatic missions for both the American, the Britain and China. In the last week of this month, the U.S. Secretary of Commerce Gina Raimondo and British Foreign Secretary James Cleverly were visiting China for high-level talks. Two ministers' trip to China followed the July's visits from the U.S. special envoy for climate John Kerry, Frans Timmermans, the Executive Vice-President of the European Commission, and Fatih Birol, the Director of the International Energy Agency (IEA). Despite the scorching weather, these significant individuals gathered from the other side of the world, showcasing not only their physical resilience but also a shared strong sense to collaborate in order to enhance the well-being of people globally, when it comes to the issue of climate change.
Starting from the 1990s, the effects of global warming-induced heat waves have led to trillions of dollars in losses across the globe. The International Labour Organization (ILO) predicts that by 2030, extreme heat will reduce global working hours by over 2%, equivalent to the loss of 80 million full-time jobs and costs of USD 2.4 trillion. According to The Deloitte Economics Institute, an estimated 43% of workers in the region of Asia Pacific are employed in vulnerable industries driven by natural disasters and net-zero transition, such as agriculture, conventional energy, manufacturing, transportation, and construction. China and India, respectively accounts for 48% and 43% of the global total workforce vulnerable. All of us must adapt to unusually 'normalized statuses' of climate change.
At the U.N. COP26 and COP27, the countries have recognized that the limit of 1.5C requires more ambitious actions, while it is an incremental progress to reduce emissions, not as rapid as expectation. Notably, existing disparities in climate action between the developed countries (Global North) and developing countries (Global South) have engendered persisting debates over the goal of emissions and the allocation of funding.
On November 30 - December 12, the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) is set to convene in the United Arab Emirates. There remains questioning whether could reach any consensus on the responsibilities of emission. A boost to the negotiations would be desirable. "Not all of us can do great things. But we can do small things with great love." (Mother Teresa, The Nobel Peace Prize 1979)
I believe that to enhance efficiency, climate policies and action plans should underscore the subsequent fundamental aspects. By prioritizing these factors, all stakeholders can delve into viable innovative strategies and expedite the establishment of mutually advantageous multilateral accords. Two takeaways are pointed as below.
1. In formulating financial risk regulation policies, it is crucial to bolster the exchange of climate information among entities of both the public and private sectors. This helps to improve market transparency, uphold financial stability, and adequately address the escalating requirement for climate-related investments.
Climate risks transcend conventional geographic boundaries and possess the potential to swiftly escalate on a global scale, giving rise to interconnected worldwide crises. Effectively preventing and managing climate risks relies heavily on the transparent sharing of information, and this should be above any geopolitical rivalry. A lack of awareness among the general population about these risks could hinder the implementation of proactive preventive measures. Inside information related to the development of low-carbon and emissions reduction could be transformed into public resources and knowledge through the internet platform ecosystem.
Therefore, it is crucial to promote the widespread dissemination of climate-related information and encourage increased cooperation among various stakeholders. This encompasses a wide array of aspects, including data on risk exposure, carbon assets, methodologies for stress testing, and practical experience in scenario analysis. All these components should be easily accessible. Through the collaborative exchange of information and the exploration of best practices, stakeholders can enhance their problem-solving capabilities, ultimately contributing to both localized and global financial stability.
2. Global tech firms and investors share a collective responsibility to actively support worldwide initiatives through diverse funding avenues. Promoting collaborative efforts among climate technology-oriented enterprises to establish a "Climate Joint Fund" stands as an important step in achieving circulation of scientific technology and fostering global innovation.
This proactive approach not only secures long-term financial gains but also underscores commitment to corporate social responsibility. Renegotiating global trade rules are central to promoting digital technologies applied for climate issues. The goal is to increase opportunities for more parties to engage in climate technology development and control climate risks to certain extent.
The investor spectrum for the "Climate Joint Fund" encompasses enterprises, business leaders across nations, international banks, investment funds, insurance companies, and philanthropic organizations. In the asset allocation process, a collaborative partnership between the funds, professional bodies, industry associations, and societal partners can provide policymakers with invaluable insights for advancing climate technology. Examples encompass efficient waste systems, smart grids, electric vehicle charging, energy-efficient buildings, and lighting technology. New jobs generated from renewable energy sectors are beneficial in every country's interest.
The progression of human civilization relies on our ability. It consistently reflects our experiences and learns from each other. Every individual, as well as every nation, shall adopt an environmentally conscious perspective and partake in endeavors to combat climate change.
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Yi Wang is Head of Global Development Program and Senior Researcher at ANBOUND, an independent think tank.
