It is imperative that world leaders invest in the fight against climate change not only to protect the planet and its inhabitants but also to ensure a prosperous and stable future for all humanity.
A Global Urgency
- Climate change is a global threat that transcends national borders. Its negative effects—such as extreme weather events, rising sea levels, and ecosystem disruptions—impact all nations.
- Urgency: Scientists emphasize the importance of taking immediate action. We have a limited window of time to act before the effects of climate change become irreversible.
Tangible Economic Impacts
- Cost of Inaction: The economic costs of inaction are significantly higher than those of preventive action. Natural disasters, agricultural losses, and climate-related health expenses cost billions each year.
- Economic Opportunities: Investing in green technologies and renewable energies creates jobs, stimulates innovation, and can lead to sustainable economic growth.
A Moral and Ethical Responsibility
- Climate Justice: Developed countries, historically responsible for a large share of greenhouse gas emissions, have an ethical responsibility to help developing countries, which are often the most affected by climate change but the least responsible.
- Future Generations: It is our duty to leave a habitable planet for future generations.
Winning Diplomacy
- Global Leadership: Nations that take proactive measures against climate change can strengthen their leadership on the world stage.
- International Cooperation: Climate change requires coordinated global action. Strong commitments can set an example for other countries and secure the Paris Agreement.
Technology and Innovation
- R&D and Innovation: Fighting climate change drives innovation in key areas such as renewable energy, energy storage technologies, and sustainable infrastructure.
- Competitive Advantages: Countries that invest in clean and sustainable technologies can gain a competitive advantage in the global market.
For all these reasons, our Call to Action for the first quarter to Political Leaders and Central Bankers, resulting from our first “Shadow COP” of 2024, is as follows:
RAISE THE WILL TO ACT:
Closer Cooperation, Higher Ambitions
- Global Climate Governance System: Quarterly inter-COP meetings of world leaders (G7, G20) should focus on climate-related issues to accelerate decision-making and improve monitoring.
- Commitment on Methane from COP 28 of the Global Energy Industry: This commitment must be closely monitored with additional investments needed to reduce methane emissions from the industry by 75% by 2030.
- Nationally Determined Contributions (NDC) of the 10 Largest Global Emitters: They should be developed by 2025, with more ambitious targets to reduce emissions by 43% by 2030 and 60% by 2035 compared to 2019 levels. NDCs must include carbon pricing.
- Mandatory Transition Plans: As part of new, more ambitious NDCs, mandatory transition plans aligned with the goals of the Paris Agreement should be prescribed for companies worldwide, beyond the applicability thresholds of the European CS3D directive.
- Limitation of Dividend Distribution: In the absence of such an audited transition plan, dividend distribution and share buybacks should be capped, for example at 20% of net income. The most critical sectors, such as energy production, should be targeted first. Transition plans should include adequate internal carbon pricing.
STRENGTHEN FINANCIAL MEANS:
Facilitate the Financing of Green Projects Worldwide
- Central Banks: They should be mandated to issue 0% or very low-interest rates for green energy projects, for as long as necessary to align developed and developing nations with the Net Zero scenario.
- Development of Private Financing: Increase conditions to develop private financing in developing countries through global risk insurance and secure local regulations.
STRENGTHEN SKILLS:
Develop Know-how and Capabilities
- Increase R&D: Increase research and development to find solutions to meet the 2050 goals (e.g., batteries, hydrogen, SAF, CCUS) by requiring large companies in carbon-intensive sectors to invest a minimum of 10% of their net cash flows.
- Increase Certain Subsidies: Increase subsidies to intensify efforts in geothermal, thermal storage, and biogas. Oil and gas companies should be prescribed growing targets for biogas production as a percentage of fossil gas sales.
- Invest in Climate Data and Modeling: Increase investment in climate data and modeling, particularly to better understand tipping point scenarios, and the causes and consequences of Earth’s recent energy imbalance.
Thanks to the entire team: Marie-Sylvie, Philippe, Bernard, Noel, and Matthieu, for these two months of preparation and brainstorming aimed at feeding the reflections of
- Joe Biden, John Podesta (USA)
- Xi Jinping, Liu Zenhua (China)
- Narendra Modi (India)
- Emmanuel Macron (France)
- Ursula von der Leyen (EU)
- Rishi Sunak (UK)
- Christine Lagarde (ECB)
- Jerome Powell (FED)
- Simon Stiell (UNFCCC)
To download the summary of our first-quarter deep dive on the 5 key climate areas:
https://lesateliersdufutur.org/wp-content/uploads/2024/05/ADF-QCR1-Eng-Summary-Final.pdf
