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The world’s politicians have many problems to solve at the same time. Amid the ongoing pandemic, climate change continues.
The IEA International Energy Council expects global greenhouse gas emissions to decrease by eight percent in 2020 as a result of the corona crisis. But the effect is small if you consider that large parts of the world are completely silent, says Victor Galaz, an associate professor of political science and deputy director of the Stockholm Resilience Center.
– The fact that people stop traveling, stay home and work remotely simply doesn’t have that kind of effect. It is only temporary. To reduce emissions in the long term, we need to change the underlying systems and change the heavy sectors, says Galaz.
Victor Galaz.
Photo: Mikael Axelsson
He sees an obvious risk of emissions It will increase again as restrictions decrease around the world. The growing indebtedness, the political recession and the weakening of international cooperation can make it even more difficult, he believes.
– The possible positive point is the discussion on how to build economic stimulus packages in such a way that they incorporate climate requirements. They must lead to some kind of system change, that we change the transportation infrastructure, our energy systems and agriculture, says Victor Galaz.
So which rescue packages have the greatest potential to stimulate the economy and move towards zero emissions? This was investigated in a recently published study that, among others, Nobel laureate Joseph Stiglitz is behind. The researchers asked 231 of the world’s leading economists to evaluate various policy proposals made. Investments in green energy are one of the proposals considered to have the greatest positive effects on both the economy and the climate, according to the report.
Just a few years ago Companies called “greentech,” which offer sustainable solutions, had a hard time attracting venture capital, according to state-owned venture capital company Almi Invest. Few dare to bet on them. In the past two years, this has changed. But even though green technology has become more attractive to investors, it’s very little money, says Sasja Beslik, head of sustainable finance at the private bank J. Safra Sarasin.
– Perhaps, if I am really kind, 16 percent of all the capital in the world is sustainable. That is the change we need, to allocate more capital in that direction, he says.
Sasja Beslik.
Photo: Magnus Hallgren
In his work, Beslik notes that interest in sustainable investments has increased in relation to the crown crisis. More and more people understand what risks are at stake. An unpredictable oil price contributes even more. If there are winners in the crisis, it’s the players with long-term strategies who have solutions for a transition, says Sasja Beslik. He is convinced that both capital and momentum exist.
– I am contacted by many who are looking for sustainable investments in emerging markets, but who find it very difficult to find them. Today there is a greater demand than a supply of products. This indicates that the investment will only increase.
But the private business You cannot pull the switch alone. Sasja Beslik believes that we are likely to see differences between regions that have been hit hard by the crown crisis and those that are not so badly affected. He sees the risk of Europe falling behind in sustainability work.
– The social consequences of the crown crisis will be so great, so I do not know if the EU will be able to fulfill the efforts it has wanted to make. I think that continuing to allocate money to the green transition, politically speaking, will be very difficult to implement.
There is one before and one after the crown crisis for everyone. This also applies to those who work with sustainable finance. Before the crisis, a major global change was almost a year away, Beslik believes. Now the situation is different.
– I still have hope … but it will take longer, he says.
Read more: More people want to save green – here’s the advice from the experts
Read more: everything you need to know about green electricity
