Areas of cooperation for a net-zero economy

THE Covid-19 pandemic and the prevailing climate emergency are both rooted in the current global economic model of pursuing infinite growth at the expense of the planet. The paradox is that the pandemic has inspired radical action, both from the public and private sector, while climate change, so far, has not.

Actions to address climate change are happening at different speeds and scales around the world. Arguably, current measures have taken little heed of the enormity and progression of the risks and vulnerabilities we are experiencing.

There is no more time to waste. We must immediately pursue the integration and coherence of private and public sector strategies for climate change adaptation and mitigation, disaster risk reduction and sustainable development. We have to renew our commitment to work together toward addressing the greatest challenge of our generation.

1.5 degrees Celsius represents the global warming threshold for climatevulnerable developing countries like the Philippines to survive and thrive. According to the Intergovernmental Panel on Climate Change, anything beyond that, even a half-degree of warming, will significantly worsen the risks of flooding, extreme heat, drought and poverty.

Also, global net carbon dioxide emissions should be cut by 45 percent by 2030 from 2010 levels to achieve a decarbonized global economy with net-zero carbon emissions by midcentury. This entails the exponential scaling up worldwide of renewable energy systems, energy efficiency, electrification of transport systems and improvements in industrial and building efficiency.

Despite our country’s insignificant emissions of less than half of 1 percent of global emissions, the burden of prevalent poverty and recurring economic losses from climate change impacts means we are resolved to pursue a lowcarbon development pathway.

The Philippines’ first-ever Nationally Determined Contribution (NDC), which banners a projected 75-percent greenhouse gas emissions reduction and avoidance — of which 2.71 percent is unconditional and 72.29 percent is conditional — represents our ambition for greenhouse gas (GHG) reduction and avoidance for 2020 to 2030 for the agriculture, waste, industry, transport and energy sectors.

The target is ambitious and transformational and will only be achieved if we are able to pull together different industries, sectors and communities across the country. We do not consider further reducing carbon emissions as a sacrifice but as an opportunity. There really is no other recourse for us but to usher in green growth and transform the economy toward a low-carbon and climate-resilient path. We pursue this because we know it is the best way to protect our people and the climate.

Let me share possible areas of cooperation between the public and the private sector toward a net-zero economy:

Green finance. Incentivizing investments in low-carbon and innovative technologies, undertaking an environmental audit of government and private sector operations and building stakeholders’ capacities for GHG mitigation are interventions that could be looked into.

Huge financial requirements to transit toward a low carbon economy will require external support. The private sector has a critical role to play to unlock more investments. To encourage investments, a national loss and damage registry and vulnerability assessment can help in assessing the need and urgency for a certain project in a particular area.

The government should also provide technical assistance to assist the private sector in addressing regulatory challenges as well as share the cost and risk involved in climate investments.

A strong partnership among all sectors will be needed to put in place the right conditions to attract domestic and foreign low-carbon investments and to scale up green financing for adaptation and mitigation measures that will further enable us to protect the environment and our people’s lives and livelihoods.

What is important is the commitment from the government, private banks and financial institutions to spur and sustain green financing. All proponents should not wait for the other to move; rather, we must act harmoniously. Climate action makes good development sense. Through green financing, we can further unlock our nation’s potential and secure a thriving and resilient future for all.

Renewable Energy. Pursuing a development path consistent with 1.5 C will not only protect our people and the environment, it will also spur economic growth.

Fossil fuels are highly volatile commoditized products. When we purchase these from overseas, we drain financial resources from our economy to support employment abroad, all the while increasing our exposure to financial risks outside our control.

This simply makes no economic sense when we have access to a great abundance of locally available clean energy resources such as solar, hydro and wind. These do not only promote clean and indigenous energy but can also provide thousands of jobs for our people.

Off-grid renewable energy solutions will be indispensable. For instance, we have over 7,000 islands and a national grid system is simply impossible. The call to transform and steadily decarbonize economies will help us all pursue a path of development compatible not just with the Paris Agreement’s ambitions but also with the needs of our people.

Our NDC can unlock new sources of climate finance that can meaningfully reduce power costs and end our reliance on imported fossil fuels. It is clear that the NDC will be crucial in sustaining green growth.

There is more than just energy to consider. The race to a 1.5-degree Celsius-compatible economy presents an opportunity to transform development itself. Due to the increasingly dire threat posed by climate change, we need to upgrade everything from infrastructure, supply chains, urban services, logistics, food supply and more.

Sustainable cities. In order to make everything more resilient, we need to virtually upgrade all facets of the economy. Climate action makes development sense.

We can start with building our cities in a smart way. Better connected and more compact cities based on mass public transport are economically more dynamic, safer and healthier, and produce lower emissions.

The concept of road-sharing among pedestrians, cyclists and motorists should be adopted. We are supporting a paradigm shift from a motor vehicle-based transportation system to a multi-modal system wherein people are not dependent on their own motorized vehicles every time they go out. Instead, they can choose different modes of transportation depending on their needs: walking or biking for short distances or safe, reliable, inexpensive and convenient public transportation system for long-distance trips.

There should be no tension between economic development and a low carbon economy. In fact, the paradigm shift could be the very answer to the goal of achieving highquality, resilient and inclusive economic growth. If we look at the facts, it should not be hard to understand the need to adopt the concept.

The author is the executive director of the Young Environmental Forum and a nonresident fellow of Stratbase ADR Institute. He completed his climate change and development course at the University of East Anglia and an executive program on sustainability leadership at Yale University. You can email him at ludwig.federigan@gmail.com.