According to Bloomberg News, the global supply chains that constitute 80% of the carbon emission on the planet will require at least $100 trillion as an investment so that the net-zero pollution pledges can be met over the next 30 years, as per a new private-sector paper that is calling for an improved and better co-ordination.
The research paper released by HSBC and Boston Consulting Thursday emphasizes that approximately half that total would be required to extend help to the small-to-medium-sized companies to adhere and layout the duties and roles.
The timing of the paper is good because the United Nations talks on climate-related issues begin Sunday in Scotland. Glasgow, which is a city with a well-known heritage for mining and manufacturing steel is host to the COP26 conference has been showing active interest in a few spheres:
- The UK host is already hesitant about any deal that is consigning coal to economic history. Chancellor of Exchequer, Rishi Sunak has promised to reduce taxes on flying and fuel, which is just the opposite of the kind of incentives environmentalists say are needed.
- Australia is a continent that is frequently devastated by floods and bushfires. It is one of the world’s largest exporters of fossil fuels and emitters per capita of gases from greenhouses. Despite the same, the country’s conservative government has been against such moves that undermine the mining industry and other key industries, thereby rendering it isolated and heading into the COP26, reports Bloomberg News.
- In Washington, President Joe Biden was intended to sweep the climate legislation as proof that America is committed to fighting against global warming, however, even there his allies have been conceding so he will have to be content with a framework that is subject to further negotiations.
While the politicians are slow in this regard, the private sector is pressing the issue. Apple, for instance, has said that it has taken an initiative and doubled the suppliers making use of clean energy, thereby advancing the pledge to have a supply chain that is fully carbon neutral by the year 2030. The tech companies as well have been vocal about the clean power pledges they have promised.
The stakes could not be more for certain industries ranging between insurance carriers and airlines. At the beginning of this month, the United Nations’ head stated that the targets set currently are way too lax. The goals set for the aviation and the shipping industry, in particular, do not align with the commitment, which will ensure that the global warming limit set at 1.5 degrees will be met, which was decided upon at the Paris Agreement in 2015, according to Bloomberg News.
According to Jan Hoffmann, who is the head of trade logistics, UN Conference on Trade and Development Geneva, the disruptions in the supply chain due to the pandemic is just a prelude to a larger challenge awaiting ahead, which is “decarbonizing maritime transport”.
He also said that the framework on a global scale and the effort for the same must be under the auspices of the UN Framework Convention on Climate Change and International Maritime Organization and must be predictable.
In the absence of clear rules, the ship and port owners will not be ready to invest in necessary vessels and the port infrastructures.
