The Biden administration has just announced that it will unveil a more aggressive plan to cut U.S. green house gases (GHG) — probably around 50 percent by the end of the decade, compared with 2005 levels. Other countries, including Canada, also announced their intentions to cut GHGs by 40 to 45 percent within the next decade. In addition, despite diplomatic clashes, the U.S. and China vow to work together on climate change. However, it is reported meanwhile that carbon dioxide levels spiked to a critical new record, halfway to doubling pre-industrial CO2 levels. In addition, forecasts by Swiss Re estimate that the effects of climate change can be expected to shave 11 to 14 percent off global economic output by 2050 compared with growth levels without climate change, possibly by as much as $23 trillion. Poorer countries are expected to suffer the most. Swiss Re is one of the world’s largest providers of insurance to other insurance companies. Needless-to-say, among insurance companies, the ultimate impact of climate change on their business is of growing concern. During the past 40 years, the U.S. alone has experienced almost 300 weather and climate-related disasters that exceeded $1 billion in losses each. Last year alone, there were 22 such billion-dollar disasters.
While it is great to see that the U.S. and Canada are upping their pledges to combat climate change through huge investments, one can only hope that it’s not too little or too late. However, the very fact that climate change is back on the agenda in a serious way, despite their obvious recent concentration on the pandemic, is a good thing. Numerous industry sectors, including the oil and gas industry, have come forward with plans to help curb GHGs. Government support for green industries will help to promote credible proposals on hydrogen-based and carbon sequestration initiatives. In recent months, there have been numerous accounts of the automotive sector’s initiatives to increase the number of electric vehicles in the coming years. Finally, one is beginning to see a change in the thinking of business leaders, recognizing the inevitability of societal demands to tackle climate change in real terms.
Despite being an optimist, I cannot help but continue to be a little sceptical as to how quickly certain industry sectors will move to implement green technologies. Like the pandemic, climate change requires a global approach to dealing with its impact. We have seen how difficult it is to really develop international strategies to resolve the pandemic when it seems each and every country is focussing primarily on its own domestic situation. Unlike the pandemic which hopefully will come under control in the coming year, climate change requires longer-term initiatives and isn’t going anywhere anytime soon.
FROLITICKS 