Company executives from various sectors, including the industrial, mining, new technologies and renewable energy ones, are joining efforts to reduce the climate load and are committed to reducing greenhouse gas emissions, expanding the use of renewable energy sources and implementing sustainable resource management principles .
At the same time, global financial institutions are allocating hundreds of billions of dollars for new investments in clean energy and energy efficiency for the next 15 years.
Slowing climate change is not cheap. Developing countries need about $ 100 billion new annual investments over the next 40 years, in order to ensure their economies are resilient to climate change. Climate change mitigation costs will add some $ 140-175 billion annually until 2030. Such a gigantic influence on international business strategies may be beyond the power of national governments.
A report published by Nature magazine concluded that global warming could reduce global average income by about a quarter. An increase in temperature by four degrees Celsius will hurt sectors such as agriculture, real estate, timber processing, and many others. Assets in emerging markets will also suffer. Thus, climate change will create an unfavorable environment for businesses of any size.
Investors will not be left out. Cambridge University, in its report, predicts a 45% reduction in the value of equity portfolios as waves of fears related to climate change sweep across global markets. Some companies have already felt this on themselves.
For years, companies around the world have taken climate friendly ideas with hostility. The main argument was "we just can not afford it". However, the significant reduction in the cost of green technologies - especially renewable energy - and the rising cost of greenhouse gas emissions have changed the picture. Today, companies seek to invest in climate-smart technologies, not only because it is moral, but also because it is profitable.
Firms also take regulatory risks into account, understanding that the active efforts of governments to transition to an economy with low greenhouse gas emissions must be considered when planning business strategies. Therefore, the private sector is increasingly understanding the pricing policy for carbon emissions and advocates for stable regulatory regimes and long-term price benchmarks in this area.
Globally, the fastest growing sector is renewable energy. Countries adopt ambitious programs for the development of wind, solar and hydroelectric power. Even Saudi Arabia, the country that owns some of the world's largest oil reserves, is considering generating most of its electricity for domestic needs from renewable sources and nuclear power plants by 2040.
Renewable energy is not the only climate friendly strategy that can offer significant growth. Companies can find opportunities in building and helping cities prepare for climate change. There’s a whole range of opportunities, from the issuance of green bonds by governments and international institutions to microloans for entrepreneurs. The market volume is also huge.
The private sector is able to help the planet avoid this fate. However, in many parts of the developing world, corruption and excessive barriers are literally stifling investment in renewable energy and other climate-friendly projects. Les the Bizonaire team help you start an eco-friendly business without such trouble!
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