WEF meeting to target tougher climate change targets

SA Finance Minister Enoch Godongwana will head a business delegation at the World Economic Forum (WEF) annual meeting in Davos, Switzerland, where the necessity of further “unprecedented” cuts in climate change emissions will be discussed.

The 2024 annual meeting takes place from January 15-19, and will be attended by over 100 governments, major international organisations and the WEF’s 1000 partner companies, as well as civil society leaders, young change makers, social entrepreneurs and the media.

Godongwana is hosting a pre-WEF event so that local business leaders can discuss and explore opportunities and new technologies likely to arise from this year’s WEF meeting, and their implications on decision making and global partnership.

The WEF said yesterday in a statement that at last year’s meeting at Davos, the word “polycrisis” was on everybody’s lips as leaders mulled over the “cascading and connected crisis of the moment”. However, the old crisis persist, even as new ones have emerged.

“Geopolitical fractures, a pervasive costof-living crisis, fragile energy and food security, and the intensifying climate emergency remain in sharp focus as this year draws to a close. Devastating conflicts, while having remained relatively isolated, continue to rage and financial turbulence is still a concern despite the global economy staving off a recession,” the WEF said.

“The question for leaders as they prepare for Davos 2024: Will the coming year be a period of ‘permacrisis’? Or will 2024 be a time for resolution and recovery?” the organisation noted in a statement.

One subject certain to fall under the spotlight is climate change. The WEF Alliance of

CEO Climate Leaders, with Boston Consulting Group, yesterday published a report that found that global emissions will have to be cut by a staggering 7 percent annually, until 2030, to be able to limit global warming to 1,5°C, as agreed by countries that signed the Paris Agreement in 2015.

“This size of emissions reduction is unprecedented, surpassing the percentage of reduced global emissions during the shutdowns caused by the Covid-19 crisis. Progress has been made in several areas, but significant gaps remain in national commitments and policies, corporate climate action, green-technology scaling, and funding,” said Rich Lesser, Boston Consulting Group Global Chairman and Chief Advisor to the World Economic Forum’s Alliance of CEO Climate Leaders.

“The findings in this report are a wake-up call to the world, reaffirming that the status quo is no longer an option,” he said in a statement.

The Alliance of CEO Climate Leaders comprises over 125 CEOs across 25 countries and 12 industries.

“As of mid-2023, the share of global emissions covered by national net zero targets exceeded 80 percent — up from virtually zero only a few years ago.

“However, only a third of global emissions are covered by net zero targets for 2050 — the rough target date required to maintain a 1.5°C limit,” the report said.

“Stronger commitments and actions are most critically needed from the ten largest emitters, which account for half of the gap to 1,5°C,” the report said.

On the corporate side, the total number of companies with commitments to 1,5°C science-based targets had increased more than six-fold between the end of 2020 and August 2023.

However, fewer than 20 percent of the world’s 1 000 largest companies had now set this type of target, and almost 40 percent have no net zero commitment at all,” the WEF said.

“Deep decarbonisation technologies such as hydrogen; carbon capture, usage, and storage (CCUS); and direct air capture, are still in early stages of development and scaling too slowly. To catch up, innovation and industrial scaling need to accelerate at nearly unprecedented levels,” the WEF said.

Kesh Mudaly, lead for Boston Consulting Group’s Climate & Sustainability and Energy practices, and hydrogen node in Africa, said although the contribution to the overall global emissions from Africa was limited, the impact of climate related change was not.

“We know from the South Africa NetZero Transition report that the economic and social cost of inaction is massive. Approximately 50 percent of South Africa’s export value, more than 1 000 000 direct jobs, and some 15 percent of GDP will be at risk if carbon emissions in South Africa are not reduced,” he said. — Business Report