North-South partnership crucial for an accelerated energy transition

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Over the past two years, we have seen businesses across the globe losing sight of previous climate goals. Progress towards a sustainable energy transition is slowing. For example, in 2022, coal-fired energy rose by 8 percent, largely driven by disruptions caused by the conflict in Eastern Europe and the subsequent energy demand that allowed fossil fuels to fill the void in global energy markets. Urgent efforts are needed to curb carbon emissions and resource-exhausting practices harming our planet to combat climate change. Off-the-cuff commitments — made when the world convenes for events such as the Conference of Parties or the World Economic Forum or coincide with designated environment days — simply won’t do hereafter. 
The recent report of the Intergovernmental Panel on Climate Change (IPCC) on climate change is a stark reminder that we need ambitious and sincere goal-setting with specific actions and outcomes to combat climate change. Multi-faceted approaches that impact every aspect of the operation of a business and the communities in which it operates are critical for
meeting the world’s climate goals. Collaboration will be crucial for a fair exit plan from fossil fuels and climate mitigation, adaption and rehabilitation. Developed economies and companies in the Global North and their counterparts in the Global South have to align on common but differentiated responsibilities as well as a new collective quantifiable goal (NCQG).
Economic losses from drought, floods and landslides have soared in Asia, causing damages of about $ 35.6 billion in 2021 alone, affecting nearly 50 million people, according to a recent report from the World Meteorological Organization (WMO). Further, given the region’s lack of preparation against climate change and rising temperature, it cannot switch to renewable energy that easily. The same is the case with Africa.
Hence, while crafting an NCQG, we have to account for the financial heft of the developed world and the finance crunch of the developing world. According to researchers at the IMF, about $357 billion will need to flow to three big middle-income countries — India, Indonesia and South Africa — each year until 2030 to phase out their coal-power plants by 2050. If we aim to mitigate climate change, we have to keep project funding in the Global South at the centre of the climate narrative. That is important to prevent a bleak trade-off between essential public services and the development of renewable energy capacities in countries most vulnerable to climate change.
Partner To Decarbonise
Emerging markets currently account for 85 percent of global carbon dioxide emissions but their per capita carbon footprint is still small compared to their developed world counterparts. They also have ideas and solutions that deserve a more prominent place in the global energy transition dialogue. As countries like India carve out even larger roles, it is essential for the Global North to partner with the Global South to decarbonise the economy at a global level.
India is the world’s second-largest producer of coal, but it has the fourth largest renewable energy power generating capacity in the world. Further, given the government’s mission of 100 percent electrification, households, industries and transportation are being electrified through distributed energy resources. India Inc has also been partnering with numerous like-minded leading multinational organizations to develop climate tech and even decarbonise business operations by integrating renewable energy into their power supply. While this is helping corporates march towards carbon neutrality, it is ensuring a better future for this generation and those that follow. 
People are central to decarbonisation. Every human on this planet will lead the energy transition and reap its benefits. Leaders and policymakers must ensure that the energy evolution is an equitable one for all populations, especially those most vulnerable to climate change. Retraining and reskilling is thus a crucial element of the transition. Many companies in the renewable energy space including ReNew have been working in some of the remotest corners of India to ensure inclusive and sustainable energy transition. Women who are at the heart of the energy transition are being trained in green jobs and upskilled to drive meaningful change in their communities.
Despite well-meaning efforts made by businesses globally to advance sustainability, we are falling short. It is only through collaboration between the Global North and Global South in areas of finance, technology, talent, innovation, skilling, and management practices that we can drive the change that is needed. Ambition, empathy and new commitments are critical to achieving an equitable green energy transition.
Vaishali Nigam Sinha is Co-founder and Chairperson of Sustainability at ReNew. Views are personal, and do not represent the stand of this publication.

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