The leading countries of the world are shifting from appeals to take care of the environment to taking effective action by declaring war on global warming, writes Bloomberg. Governments are trying to cut carbon emissions by cracking down on polluting companies and using more renewable energy, while investors are increasingly investing in green business.
Even as the human impact on the climate worsens, mechanisms to reduce emissions will become cheaper and more widespread in the near future, according to the agency's columnist. The planet is heading for its hottest period in 125,000 years. Despite the alarming data, the media regularly reports on the neglect of the problem by world leaders and attempts by companies to avoid responsibility. Carbon emissions are still high and falling very slowly, causing many to fear for the future of the planet.
However, measures by politicians and businessmen against environmental pollution "are becoming more and more viable by the day," the expert writes. In 2020, energy production from renewable sources has become cheaper, and its volume has increased at a record pace, while the consumption of gas, oil and coal has declined. The number of wind installations increased by 90 percent, and the number of solar panels increased by 23 percent. Similar processes are taking place in the automotive industry: the price of batteries is becoming more affordable, and the world's auto giants are competing for supremacy in the market for electric cars. Experts have also recorded a tendency to increase the use of hydrogen, calling it the key "green" energy resource of the near future.
In addition, about $35 trillion - a third of all assets in the financial world - is now invested in companies that focus on the ESG agenda (Environmental, Social, and Corporate Governance). By declaring this strategy the companies undertake to participate in solving global ecological and social problems. Such investments are called "socially responsible".
Diplomatic issues concerning the climate are still difficult to solve. Countries are not always able to reach an agreement, but there has been considerable progress over the last decade. For example, the island states managed to add an ambitious new goal to the 2015 Paris Agreement - to keep global average annual temperatures at 1.5 degrees Celsius. By 2021, the world's nine largest economies have pledged to reduce their emissions to zero to achieve this target.
Optimism has increased among analysts as well. The consulting firm DNV, which derives most of its profits from energy and shipping companies, lowered the expected warming by 2100 to 2.3 degrees. In 2017, the experts' forecast indicated 2.5 degrees.
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