Climate Change and Capitalism
2021 and it’s still getting hot:
Do they feel it sitting on the top?
As the second year of the coronavirus battle, 2021 marks another extraordinary year. Measures to combat were less harsh compared to 2020, yet a recent study shows that lockdowns have been effective in a temporary reduction in global emission of CO2 and other pollutants. It also marks a year of growing focus on climate restoration, including the expansions of forest lands, wetlands, mangrove and kelp forests, grasslands, and other carbon sinks. The use of solar geoengineering to enhance cooling has also seen more interest and popularity in the learning and scrutiny of its safety and efficacy.
Moreover, despite the difficulties in going out and gathering, climate activism still emerged strongly, demonstrating increased awareness of climate problems. The Youth Movement brought both energy and courage to climate policy, and campaigns promoting the Fossil Fuel Non-Proliferation Treaty started gaining traction. That said, dealing with climate is a slow and lengthy process, especially when we have done way more harm than good; we cannot rely only on unforeseen circumstances like the COVID-19 pandemic to do the good. Actions require planning, and the determinants of how to combat and at what speed lie in the G7 summit and COP 26.
The Group of Seven (G7) – the US, Canada, the UK, France, Germany, Italy, and Spain – sat for the first in-person summit since 2019, hosted by the UK in Cornwall. It focused on issues revolving around the Covid-19 crisis, climate change, global taxation, and, unlike previous years, a more unanimous vision on China. Given that the meeting did not explicitly address climate change, it is conjecturable that strategies are getting “closer” to being developed. Still, differences in critical details will prevent concrete actions at the moment.
Regardless, the countries agreed to invest more in infrastructure and climate change projects, denying the initiatives as a response to China’s Belt and Road Initiative. This marks some promising signs, yet the fact that activists from the group Extinction Rebellion (XR) parked a van across the venue road after the summit finished highlighted the discrepancy between climate reality and G7 political reality. The missed opportunity to set a new global standard on climate change by addressing a definite date of the withdrawal of coal use is bizarre. They rejected a proposal to halt the production of diesel and petrol cars and barely touched the multi-billion dollars bill the developing world demands to be paid to bring their emissions to heel. The issues ultimately reflect that the 2021 G7 summit did not solve much in climate issues, and promises remain promises.
The 2021 United Nations Climate Change Conference (COP 26) saw somewhat better outcomes regarding climate change issues. The IFRS Foundation announced the launch of a new International Sustainability Standard Board (ISSB) to develop globally adopted sustainability disclosure standards. It will have a multi-location structure to match the different needs of different regions to reflect the varying needs of areas. Unlike the G7 summit, coal was, for the first time, specifically mentioned in UN documents, showing signs of hope. The conference’s ambition was to phase out coal, but a late objection from China and India caused this to be downgraded to phase down. Although this means the 1.5C target (limit warming to 1.5°C above preindustrial levels) is unlikely to be achieved soon, the first steps are in the right direction, and that there have been first steps.
Methane emissions are also aimed to be cut, with more than 100 countries having committed the Global Methane Pledge to reduce methane emission level by 30% compared to the previous year, with the primary aim at the fossil fuel industry. Another big announcement, agreed by over 100 world leaders, regards the commitment to end deforestation. £14bn ($19.2bn) is to be funded to complete and reverse deforestation by 2030. Brazil, home to the Amazon rainforest, was one of the signatories to the deal.
Comparing the outcomes of the G7 summit and COP 26, it was relatively straightforward that the UN meeting has achieved more than its seven counterparts. Considering that the countries most affected by climate are developing ones and therefore do not have a voice in the G7 summit, enabling a more global and transparent event will likely result in a better result for our climate.