Investment will drive the green energy revolution - Nick Dimmock
So, what about Article 6? As public funds won’t be sufficient to finance developing countries’ NDCs, most emission reduction activities need to be financed by the private sector so appropriate financing solutions are required. This is where Article 6 of the Paris Agreement can help.
Article 6 acknowledges that countries can pursue voluntary cooperation in the implementation of their NDCs to enable for higher mitigation ambition and to promote sustainable development.
With this in mind, investing money in renewables can be one of the many ways to protect our planet from the ravages of climate change. The world needs more green energy to replace fossil fuels, and strong demand tends to make a good case for energy investments.
When the global economy is strong, demand for power soars and its price grows. This means that the value of companies producing power rises. As the renewable energy industry heads through 2023, soaring demand and attractive, long-term incentives are creating strong tailwinds.
By 2050, about half of global energy production is expected to come from renewables - the shift requires huge amounts of energy investment in order to radically reduce emissions and it presents a sustainable investment strategy for long-term returns.
The sector is at the forefront of technological development, and cutting-edge research is leading to lucrative breakthroughs in increasing generation capacity.
That said, greenwashing tactics and carbon offsetting simply do not work, and while it might seem some have their heart in the right place, we need to look at supporting strategies and technologies that actually work.
Indeed, the concept of corporate carbon offsetting is not just a licence to pollute, but an incentive. Offsetting schemes provide a good story that allows companies to swerve away from taking meaningful action on their carbon emissions.
For example, tree-planting initiatives are frequently lauded by companies as the answer. Forests are one of our best lines of defence against climate change and restoring them is crucial, but this can’t be a substitute for reducing carbon emissions in the first place. We need to face reality and accept that we cannot plant our way out of the climate emergency. Faster, more effective solutions are needed.
The whole concept of corporate greenwashing, where businesses exploit the vagueness of green terminology to appear environmentally conscious, is problematic for many reasons. It misleads investors and consumers, who are genuinely seeking environmentally friendly options, to believe that they are purchasing from brands that are biodegradable, ethically sourced or carbon neutral.
We now need to move beyond the green energy myths and match investment to the real opportunities.
Nick Dimmock, Founder at 350PPM
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