The pandemic has severely impacted not only the global economy, but also the sustainable development sector. In Europe, renewables produce more energy than fossil fuels. The rise in popularity of electric vehicles and the goals of reducing emissions bring us closer to the conscious and responsible consumption of natural resources.
Generation Investment Management, an investment firm founded by former US Vice President Al Gore, has highlighted several major trends in this area.
5 major trends in sustainable developmentYana Nosenko
Emission reduction targets are becoming the norm
Currently, more than three quarters of the global economy is subject to national commitments to achieve zero greenhouse gas emissions by 2050. More than 2,000 companies have pledged to cut emissions to zero through the Race to Zero campaign.
Some organizations have gone even further, such as Microsoft, which plans to compensate for the damage done to the environment over the past 45 years. However, the report says that many companies still do not have robust plans with targets for the near future.
Investment in sustainable development is on the rise
Since 2015, the cash flow to ESG has grown tenfold, and the number of venture capital and private deals related to sustainable development has doubled.
We are also seeing an increase in investment in “natural solutions” such as regenerative agriculture and plant-based meat. Investments in renewable energy sources may exceed investments in oil and gas production this year, and the share of market capitalization attributable to the green economy has already tripled.
Net Zero Asset Managers, an international asset management group, now has 128 signatories and $ 43 trillion in assets managed, in line with the goal of achieving zero emissions by 2050.
Natural solutions get a lot of support
Millions of plant and animal species are endangered. According to the World Economic Forum, the damage from an irresponsible attitude towards nature could amount to $ 44 trillion, that is, more than half of the world’s GDP.
While many companies set themselves climate goals, very few give thought to the importance of biodiversity. Vegetable meat production will reduce the vast areas of land used for agriculture. It is beef that remains the main cause of the disappearance of tropical rainforests.
Cities are changing
After Paris Mayor Anne Hidalgo endorsed the 15-minute city model – the idea that city residents should be able to make most of their daily commutes in 15 minutes – politicians in other cities have also reflected on the importance of a comfortable urban environment.
The compact and well-thought-out layout of residential areas will reduce emissions from commuting. During the pandemic, many cities have acquired new bike lanes or closed some streets to traffic.
Need to accelerate
The world is failing to meet the goals of the Paris Climate Agreement. For example, the US has pledged to halve emissions by 2030. This requires:
- 8 times more use of wind and solar energy,
- increase sales of electric vehicles by 10 times
- to introduce the use of green hydrogen in industry 20 times faster.
In general, in order to achieve the intended goals, the energy transition must occur five times faster.
Cover photo: Unsplash
Source: RB.RU by rb.ru.
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