UNEP urges private investment in projects to ease climate change effects
0 Comment(s)
Print
E-mail Xinhua, June 21, 2013
More than 80 percent of the capital needed to address climate change may come from the private sector, the UN Environment Program (UNEP) said in a new report released in Nairobi on Friday.
The UNEP report says such funding can bring significant "green economy" investment opportunities in the finance sector for green buildings, energy-efficiency technology, sustainable transport and other low-carbon products and infrastructure.
The report, GEO-5 for Business: Impacts of a Changing Environment on the Corporate Sector says environmental changes represent major opportunities for businesses that successfully manage them, and seize the demand for sustainable technologies, investments and services.
UNEP Executive Director Achim Steiner said the report speaks to the reality of climate change and natural resource scarcities and outlines how more creative decisions by the private sector with longer term horizons may assist in meeting these challenges.
"It makes the case that whether it be in water saving, or climate-proofing infrastructure, the world is going to look for solutions that in turn will drive corporate competitiveness, reputational risk and a transition to an inclusive green economy," said Steiner.
The report comes as natural resource constrains, manufacturing and financial or economic crises have been driving the private sector to take action, independent of public sector commitments, or a global deal on climate change.
According to experts, adapting to climate change is no longer an issue for governments to resolve alone. They say the private sector needs to be better involved in decision making.
The scientists agree that the globalization of markets and supply chains means that organizations of all sizes are increasingly interdependent, providing direct and indirect exposures and businesses opportunities.
The UNEP says private sector investors are needed to avoid the potentially devastating impacts of climate change and extreme weather events as witnessed in many parts of the world in 2012.
Environmentalists agree that extreme weather has become the "new norm" and comes at a huge, and rising, cost to the global economic system.
The scientists said without action from the private sector, the world could see a rise in frequency of extreme weather events, often linked to climate change that poses risks to all sectors.
Rising temperatures are challenging the future viability of tourism businesses, says the new report, adding that fewer than half of the ski resorts operating in the US northeast are likely to remain economically viable in 30 years, if average winter temperatures increase between 2.5° and 4°F.
According to UNEP, changes in the global environment will increasingly impact operating costs, markets for products, the availability of raw materials, and the reputation of businesses, from finance and tourism, to healthcare and transport.
The report indicates that the future of the private sector will mainly hinge on the ability of businesses to adapt to the world's rapidly changing environment and to develop goods and services that can reduce the impacts of climate change, water scarcity, emissions of harmful chemicals, and other environmental concerns.
"While the risks are significant, such environmental changes also represent major opportunities for businesses that successfully manage them, and seize the demand for sustainable technologies, investments and services," it says.
The Kenyan government has been rolling out progressive interventions to minimize the impact of climate change to the economy, livelihoods and ecosystems.
According to officials, the new constitution oblige the state to expand the tree cover to 10 percent while ensuring every citizen has access to a clean and healthy environment.
"Moreover, Kenya has already introduced a range of low carbon options across many sectors. These include renewable energy, more efficient use of biomass and sustainable land use management," a government official told Xinhua.
He said the national climate change action plan is a strategic move to boost Kenya's resilience to vagaries associated with global warming and at the same time accelerates green development pathways.
Through a detailed analysis of the construction, chemicals, mining, food, and other industries, GEO-5 for Business outlines the specific risks of such changes to each sector, and how businesses can adjust to create long-term competitive advantages.
The report says water scarcity remains a critical challenge for all sectors profiled in GEO-5 for Business, adding that companies in the tourism, chemicals and other sectors could face increased operational costs.
The business sector remains vulnerable to volatility in energy markets and rises in energy prices due to the energy-intensive nature of producing steel, concrete and other materials. Concerns about low water availability in certain regions may limit potential development opportunities.
The sector could come under increasing consumer pressure to reduce waste generated during construction.
The report finds that urbanization and economic development in emerging economies can translate into substantial demand for new, greener housing and infrastructure. Endi
Go to Forum >>0 Comment(s)