The current pandemic has dramatically changed the face of the world over the past couple of months. Not only are the countries’ economies being profoundly impacted, but more magnified political cleavages are taking place between great powers, as observed between the United States and China, for instance. The two countries are blaming each other in the context of the pandemic, and the U.S. is considering a range of sanctions, which could seriously compromise future cooperation efforts. However, it is possible to argue that the unprecedented impacts of the current crisis have almost overshadowed the changes that the environment has witnessed. The worldwide stay-at-home order has noticeably improved the quality of biodiversity. From air and water quality to wildlife restoration, data proves that the imposed quarantine regime has initiated some profound changes. For instance, in China, carbon emissions fell by 25% at the start of the year, and the proportion of days with good air quality was much more significant across the country. Similar trends were observed in Europe, saving 11.000 premature deaths, a report says. Some questions, then, arise: Can these positive trends last? Can they serve as a reference point for future efforts when it comes to environmental sustainability? In order to answer these questions, it is essential to look further and deeper to understand the implications that the current pandemic brings to the table.
In this article, I argue that the COVID-19 pandemic will compromise the global efforts to preserve the environment if world governments do not adopt a new framework for environmental governance. While environmental improvements have given hope to many during the quarantine, in reality, they seem to resemble a mirage because they primarily concern the short term. There is, unfortunately, no guarantee that such a dynamic will represent the new normal. Because climate change does not wait, it will be essential for major states to lead the fight against climate change to design a renewed, more flexible, and innovative framework to adapt to the current worldwide shutdown. This strategy is especially relevant as the Intergovernmental Panel on Climate Change has specified that the world will need to implement fundamental shifts by 2030, which suggests that the year 2020 is of particular importance. Given the time it takes to design and implement achievable targets, countries need to start revising national environmental plans this year.
On the one hand, it is rational to think that once social and economic opportunities will be available, global emissions will rise again, and we will find ourselves facing the same problem of climate change without having found any remedy. Perhaps, we will even have to face this environmental crisis more severely. On the other hand, what is even more critical is the idea that the crisis will delay (if not cancel) ambitious projects and significant investments related to the development of clean energy structures. The International Energy Agency writes in a report that the pandemic is expected to delay major renewable deployments as well as projects under construction. The report argues that the current situation has “a direct impact on the commissioning of renewable electricity projects, biofuel facilities, and renewable heat investments.” The United States is no exception as the Solar Energy Industries Association has stated that the economic crisis could lead the solar energy sector to lose a significant amount of its workforce and, ultimately, to slow down the green transition considerably. The crisis has projected a lot of uncertainties as to the future of environmental initiatives. It is, therefore, essential to find the right formula between current capabilities and needs.
However, in an effort to support small and medium-sized companies in the renewable energy sector in the immediate time, several governments have addressed the concerns linked to the cancellation of projects from a legal perspective. For instance, France and Germany, which have been the leading environmental voices in Europe over the past few years, adopted policy changes that allow for more flexibility in project commissioning by extending deadlines. While it is impossible to judge the effectiveness of these measures at the moment, it is worth noting that a number of governments are currently working along a similar line of action, which can potentially open new avenues for international cooperation. Countries that have started adjusting their environmental policy frameworks understood that it is a necessity to keep environmental matters as a top priority, despite having a growing list of tasks to resolve on their agendas. However, will such measures, which appear to set a basis for further environmental policies in a changing context, survive deeper economic troubles? Or will they even make any difference amid such a deep crisis?
Undoubtedly, it is worth emphasizing the increasing national public debts certain countries are experiencing (and will experience in the future), which might seriously compromise the development of future environmental measures. Governments might have to shift their focus to purely economic matters until the national (and global) situation settles down. For instance, while the President of France Emmanuel Macron has repeatedly mentioned that the country will fight for the life of every french citizen at all costs, the country now faces an exorbitant public debt. More precisely, the public deficit is increasing every day and might reach 9% of the GNP, while the public debt might jump by 115% in the coming weeks. To alleviate the dramatic burden of an economic depression, some experts have suggested the possibility of canceling the public debt by the European Central Bank, which is an idea that, today, seems to be in the realm of utopia. Despite these alarming statistics, it is necessary to give credit to both French and German leaders who clearly set the terms of the debate and launched the recovery process in Europe by proposing a European economic recovery plan.
Furthermore, to contain the spread of the virus and respect the global lockdown enforced by governments, major Summits have been postponed, thus jeopardizing the environmental dynamic that has been developing over the past few years at the global level (despite being relatively slow and criticized). This is the case of the EU-China Climate Summit and the COP26 UN Climate Summit, both likely to be delayed by at least a year. The international community expected these two major events to set new and more ambitious emissions standards, along with renewed commitments and partnerships. In the case of the EU-China Summit, the likelihood of future climate agreements seems now increasingly distant as tensions remain relatively high due to the numerous speculations around the coronavirus pandemic. For what concerns COP26, experts are becoming increasingly concerned that a long gap until the Summit is rescheduled would make it more challenging to regain the momentum required for countries to comply with new environmental standards and national plans on carbon emissions cuts. When discussing environmental matters at the Summit, states are required to prepare a precise plan outlining how they intend to stay in line with the environmental standards established by the Paris Agreement However, this is something that most countries have failed to do for a variety of reasons. Another concern that can be added to the list is the fact that in addition to major Summits, other UN environmental conferences on biodiversity and related topics have been postponed, which questions how this all will fall back together in the appropriate way and in the proper time.
Due to all these complications that have occurred in a relatively short period, governments will need to think about the best course of action to take that could primarily support long-term shifts. Countries cannot simply follow the exact strategy that has been planned before this crisis, as it is known to all of us that the pandemic will leave severe scars at different levels of society. Also, while it is true that we have observed environmental improvements, it would be inappropriate to limit oneself by thinking that people will automatically become more environmentally conscious after experiencing a cleaner environment in the short term. Even though we have responded to the current crisis quite rapidly, durable responses to environmental degradation need not only strong policy support and a shift in consciousness but also a new global framework that would integrate climate ambitions within the economic recovery process. Instead of seeing these two challenges as separate, it is essential to see them as complementary, thus creating an even more powerful mission. As a brief by the OECD confirms, “recovery efforts will give countries a chance to make much-needed environmental improvements an integral part of the economic recovery, rather than such measures being perceived as an additional burden at a time of crisis.” The development of green economies, international partnerships, increased investments, and the modernization of health systems around the world are such elements that have long been on the table, and that will need to become a reality if we are to achieve sustainable goals. The reality is that our societies learn from chaos and crises and are in constant reaction, which is something that history has repeatedly demonstrated. While this model leaves room for improvements, it becomes crucial to adopt a more proactive strategy. As the French say, “il vaut mieux prévenir que guérir” (prevention is better than cure).
Here, it would not be entirely appropriate to target specific countries or groups of countries. Because the fight against climate change is a collective matter, it would be most relevant to look at the situation from a more global perspective. This can be done by writing down several steps countries might be thinking of taking in order not to compromise environmental efforts made thus far. This strategy is especially important as the room for effective manoeuvre to take decisive action can become more limited as time passes, and as governments continue to consider economic measures to support polluting industries and other businesses. As Angel Gurria, OECD Secretary-General, stated, “governments have a unique chance for a green and inclusive recovery that they must seize — a recovery that not only provides income and jobs, but also has broader goals, integrates strong climate and biodiversity action, and builds resilience.”
In this sense, one of the recommendations aiming at limiting the impact of COVID-19 on climate change efforts would be to align short term objectives with long term ones through a combination of innovative policies in order not to put aside environmental concerns. It would be wrong to think that economic matters need to be resolved first, as a strong economy requires a healthy environment. It is not in any country’s interest to compromise the improvements made in recent times. A second recommendation would be for governments to initiate a work in which they can start integrating environmental matters into the economic recovery policies, which include the most affected areas of the society. Integrating both issues at the same time, would facilitate later initiatives for Green economies, which is essential given the Intergovernmental Panel’s predictions on Climate Change. Finally, it would be necessary for governments to support the ongoing positive dynamic that parts of the world population have shown toward environmental matters during the quarantine regime. Thus, governments should be able to promote more effective environmental messages to show the benefits that a given population can gain from a more healthy environment, which, surprisingly enough, is not as evident when we think of the current standards of living in developed countries. As the OECD suggests, “underscoring the benefits to well-being and prosperity from more resilient societies can strengthen public support for measures aimed at enhancing environmental health.”
From our partner RIAC
Promoting Green Finance in Qatar: Post-Pandemic Opportunities and Challenges
The recent COVID-19 pandemic had significant implications for both national economies and the global financial system, in addition to hindering the achievement of the sustainable development goals agenda. The UNDP estimates global human development—a combination of education, health, and living standards—could fall this year for the first time since 1990, which highlights how the effects of the pandemic present both an enormous challenge and tremendous opportunities for reaching the 2030 Agenda and the Sustainable Development Goals (SDGs).
With the additional challenges arising from climate change, governments have committed to several policy measures which promote a green recovery to rebuild their economies, while benefiting the people and the planet. The Organisation for Economic Co-operation and Development (OECD) estimates that the public resources committed by governments to support a green recovery amount to at least USD 312 billion. These measures present tremendous opportunities for green finance in general, and Islamic green finance in particular, in the context of Muslim-majority countries.
The State of Qatar, in light of its National Vision 2030 and in order to enhance the diversification of its economy away from hydrocarbon, has taken several measures to mitigate climate change. These include increasing the use of solar energy to more than 20% of its energy mix by 2030, the optimal use of water, improving air quality, waste recycling, increasing green spaces, in addition to the country’s commitment to organizing the first “carbon neutral” tournament featuring the use of solar-powered stadiums and water and energy-saving cooling and lighting technology. The State is also a signatory of the Paris Agreement on Climate Change and supports a number of global initiatives in relation to climate change mitigation.
All these initiatives could be funded via green finance. In this regard, there are four global trends in the financial industry that the State of Qatar can leverage to promote green finance for green recovery:
Growth of SRI and ESG awareness:
Socially responsible investing (SRI) and environmental, social, and governance (ESG) investing are two of the fastest growing investing areas globally. Both are driven by the increasing awareness of social and environmental responsibility. According to the Global Sustainable Investment Alliance, global sustainable investment reached $30.7 trillion in the five major markets at the start of 2018, a 34 percent increase in two years. These include Europe, United States, Japan, Canada, Australia, and New Zealand. Developing green finance instruments and products can attract a growing SRI investor base that seeks to align social and environmental values with its investment portfolios.
Upward trend of Islamic Finance:
According to the Islamic Financial Services Board (IFSB), the total worth of the Islamic Financial Services Industry across its three main segments (banking, capital markets, and takaful) is estimated at $2.44 trillion in 2019, marking a year-on-year 11.4% growth in assets in US dollar terms. According to Thomson Reuters, the industry is projected to reach $3.8 trillion by 2022. Qatar is one of the global Islamic finance hubs with Islamic finance assets representing more than 20% of the local financial system’s assets. With the recent development of Islamic green finance, Qatar has the opportunity to position itself as a sustainable finance leader in the region by promoting synergies between Islamic and green finance growing markets.
Financial innovation for sustainability:
The United Nations Conference on Trade and Development (UNCTAD) highlights that achieving the Sustainable Development Goals (SDGs) will take between $5 and $7 trillion, with an investment gap in developing countries of about $2.5 trillion and the additional net investment required to implement renewable energy solutions standing at $ 1.4 trillion, or about $100 billion per year on average between 2016 and 2030, according to the International Renewable Energy Agency (IRENA). Mitigating this funding gap requires an engaged private sector to make green investments. That is why several green instruments and products were developed across the various segments of the financial industry. These include green retail banking products, including green loans and green mortgages, green corporate and investment products, green project finance, and green venture capital and private equity, as well as green capital market instruments, like green investment funds, green bonds, and sukuk.
Integration of sustainability objectives into national strategies:
Several governments around the world have integrated sustainability objectives and green finance roadmaps into their national strategies, either through a top-down approach, whereby green finance frameworks and taxonomies are harmonized at the country level (as with China), or via market-led collaborative actions. In addition, to overcome private sector investment barriers, such as high up-front costs, long investment timelines, and higher perceived risks, several countries have put in place incentives in the form of subsidies and tax exemptions. The State of Qatar can leverage these experiences through collaborations and partnerships to develop a unique green finance model in the region
Green Sukuk: A Fast Growing Market
Green sukuk is an innovative instrument for financing green infrastructure. It has the potential to become a new asset class targeting both Islamic and socially responsible investors.
Since the issuance of the first green sukuk in 2017 in Malaysia, the market has grown significantly, with twelve issuers in Indonesia, Malaysia, and the United Arab Emirates tapping the market, in addition to the Islamic Development Bank. About $7.6 billion in four currencies (EUR, IDR, MYR, and USD) was raised up to September 2020, with tenors ranging from two to 21 years. The amounts raised were allocated to green construction, energy efficiency, and clean transportation projects.
Promoting Green Finance in Qatar
Although the green finance market is still in an early stage of development in the country, the market has witnessed several initiatives by local institutions that might pave the way to the development of a more dynamic market. In September 2020, Qatar National Bank (QNB) issued the first ever green bond in Qatar, a $600 million tranche, under its MTN Program, with a maturity of five years under its established Green, Social, and Sustainability Bond Framework.
In addition, Qatar Stock Exchange (QSE) introduced an ESG Guidance in 2017 to assist listed companies wishing to incorporate ESG reporting into their existing reporting processes.
While Bond and sukuk issuance in Qatar reached $28 billion in 2019, the market is largely driven by government issuance and commercial banks for corporate issuances, with the exception of Ezdan Sukuk in 2016 and 2017. The development of green sukuk in the country with the enabling ecosystem could facilitate corporate sukuk issuance, thus enhancing market liquidity.
In conclusion, promoting a green recovery in line with the country’s economic diversification objectives and climate mitigation strategies will require the development of an enabling ecosystem for the development of green finance in Qatar. Developing a pipeline of bankable green projects at the country level, market awareness, and promoting synergies between Islamic and green finance will provide the basis for further innovation and policy action, such as green labels, frameworks, and incentives.
2021 will be defined by the more long-term crisis facing humanity: Climate change
Rather than low-tech and often unworkable solutions (reduced or no travel, mass vegan diets) governments are increasingly embracing technology to help us understand and influence the climate – rather than merely respond to it. This should become the norm for public authorities across the world.
China’s weather modification programme, for example, could be a lifeline for workable solutions to climate change globally. The technique, known as cloud-seeding, uses silver iodide and liquid nitrogen to thicken water droplets in the cloud, leading to increased rain or snowfall.
The technology has been used to prevent droughts and regulate weather before major events, like in the run up to the 2008 Beijing Olympics.
The Chinese cabinet has announced that its weather modification programme will cover half the country by 2025, with the aim to revitalize rural regions, restore ecosystems, minimize losses from natural disasters and redistribute water throughout the country.
And China’s ambitious ‘Sky River’ programme could eventually divert 5 billion cubic meters of water annually across regions, which could protect millions of people from the effects of drought and water scarcity.
Although critics have, without evidence, described these projects as ‘weaponization of the weather’, the humanitarian and development potential is huge.
Necessity is the mother of invention, and this is truer than ever with regards to the climate. The world faces a climate-change induced water crisis, with 1.5 billion people affected globally.
The UN predicts that at the current water usage levels, water scarcity could displace 700 million people by 2030.
Carbon emissions are unlikely to be eliminated in high growth economies in regions like Asia, meaning that the world must develop a way to manage emissions’ effects on the climate.
Whilst it is true that the basic solutions of eating less meat, cycling to work and cutting back on international flights can help to curb our carbon output in the long-run, it does nothing to help those who suffer from flooding or water scarcity today.
Ultimately, technology is an essential part of the solution.
Big Tech is leading the charge in tackling climate change through the use of Big Data and machine learning. In November 2019, a group of data scientists published a paper entitled ‘Tackling Climate Change with Machine Learning’. The paper laid out 13 different applications of using machine learning to tackle the impacts of climate change. One such application was using machine-learning to predict extreme weather events.
Such an application is already being put into action. For example, Bangladesh is one of the most flood-prone countries in the world; approximately 5 million people were negatively affected by flooding last year alone. In order to help combat this, Google teamed up with the Bangladesh Water Development Board and the Access to Information (a2i) Programme to develop a flood notification app that is approximately 90% accurate.
The app, which is enabled by AI flooding simulation, provides the population with timely, updated, and critical information that can help users make informed decisions on the safety of their families and friends.
The same technology has been used in both India and South Africa, and has the potential to save thousands of lives and livelihoods. It is these sorts of innovations that we must rely on to help those who are most vulnerable to the impact of climate change.
It is not only cloud-seeding and weather prediction technologies that will provide humanity with a route out of its biggest existential threat. Breakthrough battery technology, green hydrogen, 5G-based smart grids and carbon-negative factories are set to become commonplace in our fight against rising CO2 levels.
As a global society, we must set our political divisions and some critics’ technophobia aside, and step forward in a spirit of international collaboration.
Similarly to how the pandemic showed the need for united global action, climate change will do the same. And just as technology and science was a key part in how the pandemic was brought under control, climate change can only be addressed through tech-based solutions.
The solution to marine plastic pollution is plural, and plastic offsetting is one of them
Due to growing concerns around environmental protection, businesses, individuals and governments have been looking for solutions that can be largely implemented to close the tap on plastic pollution.
In the last five years, businesses have strengthened their Sustainability Approach to acknowledge the need to take responsibility for their plastic production and consumption.
If targets have been defined and strong policies followed them to ensure high recycling rates of plastic products, a problem remains. What is the solution for low-value non-recyclable plastics?
This is where plastic offsetting enters the scene. As a derivative of the Carbon Offsetting concept, where trees are planted or protected to capture CO2 emissions, Plastic offsetting also known as Plastic Neutralization, enables companies to take responsibility for their plastic footprint.
Put simply, neutralizing means funding the collection and treatment of plastic, equivalent to the plastic impact of the business. Therefore, giving it the opportunity to compensate for every ton of plastic it has produced by ensuring there is one ton less in the environment.
From linear to Circular Economy Itis also a breakthrough in our traditional model of production, the linear economy. By extending the producer responsibility (EPR), this concept allow to build the bridge that lead to the ideal model, the circular economy, where no waste remains.
This innovative solution brings with it diverse positive impact. To the environment, by protecting ecosystems from plastic pollution, reducing landfilling and CO2 emissions. A strong social impact, by local communities by empowering local communities with work and better incomes. But also businesses, by becoming more sustainable with the reduction of the plastic footprint and a strengthen corporate social responsibility.
TONTOTON, a Vietnamese company, based in Ho Chi Minh City has succeed to connect all stakeholders to create a new market for low-value non-recyclable post-consumer plastic, on the scheme of circular economy.
TONTOTON Plastic Neutralization Program
Following the idea that the informal sector achieve to collect and recycle large amount of plastic in poor waste management areas, Barak Ekshtein, director of TONTOTON decided to look closer to the problem. In fact, a study shows that ‘97% of plastic bottles were collected by informal waste pickers.
The problem therefore does not lie in the logistics but in the price. By giving a market price to non-recyclable plastic, it allows waste collectors to collect and treat waste and thus avoid plastic pollution.
TONTOTON currently works in Southern Vietnamese Islands, Hon Son and Phu Quoc, and has already few tons of low-value plastic waste. To do so, it collaborates with local waste-pickers and thus provide them better incomes. The program focuses on preventing ocean plastic by following the Ocean Bound Plastic Certification. Their activities are audited by a 3rd party control body, the internationally recognized company, Control Union.
To treat the waste, TONTOTON partners with a certified cement plant, through co-processing, to valorize waste as an alternative energy and raw material. “Our system can solve two issues. Plastic is made of fossil fuels and contains more energy than coal. Thus we can replace industrial coal consumption with non-recyclable plastic waste. The plastic will not end up in landfill or oceans, therefore reduce levels of coal consumption and thus also CO2 emissions.”, says Barak Ekshtein.
Businesses engaged in their program can claim plastic neutrality on the amount of plastic neutralized to share their sustainability efforts. Moreover, indicate it on their neutralized product by bearing the “Plastic Neutral Product” label.
Security Council reforms must reflect 21st century realities
The President of the General Assembly, on Monday, underscored the importance of effectiveness and efficiency for all bodies of the...
Economic Inclusion Programs Now Benefit 92 Million People Worldwide
Economic inclusion programs, which help boost income and assets of the world’s poorest, are on the rise in 75 countries,...
Meritocracy in the Age of Mediocrity
Authors: Ash Narain Roy and Sophia Thomas* Meritocracy, political theorist Hannah Arendt famously says, “contradicts the principle of equality. Without...
New COVID-19 strains ‘poised to unleash’ more severe infections
Since September, the devastation wrought by the COVID-19 pandemic has deepened, infecting close to 100 million people, costing more than...
Health, Jobs and Environment Top Personal Risk List
A new World Economic Forum/Ipsos survey found most adults are optimistic about accessing technology, digital tools and training in the...
Global Business Leaders Committing to Stakeholder Capitalism Metrics
A growing coalition of 61 top business leaders across industries announced today their commitment to the Stakeholder Capitalism Metrics, a...
For a Resilient Recovery and Long-term Prosperity, Russia Must Invest in All its People
Alexei is a young man living in a suburb of Moscow, where he was born and raised. His estimated life...
Intelligence3 days ago
The role of maritime power
Defense3 days ago
The Proxy War of Libya: Unravelling the Complexities
Russia3 days ago
Russia is a part of Europe, which never became a part of Russia
Economy2 days ago
Central Asia: Potential and Opportunities of Investment
Europe3 days ago
EU playing a zero-sum game in Kosovo
Eastern Europe18 hours ago
Iran’s Position on Karabakh War: Tehran Competes for the Hearts of Azerbaijanis
Economy2 days ago
Major impediments to Pakistan’s economic growth
South Asia2 days ago
Farmers’ Protest: A Case for Policy Communications