Climate technology for everyone, not for a few

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By Dr. Faheem Ahmed

WIRRAL, MERSEYSIDE – A giant sand artwork adorns New Brighton Beach to highlight global warming and … [+] the next world climate conference COP26.

Getty Images Engagement Issues

What is the best time to make a commitment?

Millions of people around the world are witnessing the last days of the Gregorian calendar in anticipation of the new year, making resolutions to pursue with renewed vigor next month. Research suggests that a transition point, such as the start of a decade, or a significant event, such as COVID-19, separates people from their past, present, and future selves. This gives impetus to a phenomenon known as the “restart effect”.

Time landmarks such as these structure people’s perceptions of time, creating new periods of mental accounting to motivate us to pursue often lofty and seldom achievable goals. The 26th Conference of the Parties of the UNCC (COP26) was held in November 2021 in the midst of a furious global pandemic and bizarre weather volatility coupled with worrying economic uncertainty and political instability around the world; hardly favorable conditions for assuming any form of credible commitment. While critics are divided over the verdicts of the Glasgow Climate Pact, one question remains consistent: Are high-risk multilateral negotiations inevitably doomed to failure?

Nearly 200 countries summoned to produce a series of precarious promises forged in two weeks of intense negotiations. These included commitments to limit global warming to +2.1 degrees by 2100; stop the degradation of nearly 90% of the world’s forests by 2030; reduce methane emissions by 30% over the next two decades; replace internal combustion engines with electric vehicles; and mobilize over $ 130 trillion in financial sector funds to achieve a “net zero” economy by 2050. Sustainable technology has been touted as the key to delivering on these promises. Since the dawn of time, technological innovation has been the foundation of the progress of human civilization and at COP26 it takes center stage as the savior behind our transition to a fossil-free world.

Tech titans have made monumental announcements including Bill Gates ‘Breakthrough Energy officially partnering with the US, UK and European Commission to invest in decarbonisation technologies and Jeff Bezos’ $ 10 billion Earth Fund to support energy projects. renewable in developing countries with the World Bank and the Rockefeller Foundation. Apple and Google have engaged in more sustainable operations and supply chains, as data centers are estimated to produce more C02 than the commercial airline industry, and power consumption is projected to increase 40-fold as energy increases. data question. With Big Tech’s first big appearance at the COP, their timing couldn’t have been better to signal the monumental power and influence they wield in defining and shaping global climate policy.

Since the dawn of time, technological innovation has been the basis of the progress of human civilization, and at COP26 it takes center stage as the savior behind our transition to a fossil-free world. Take from the rich and give to the poor

The biggest breakdown in negotiations centered on the fate of the world’s poorest people as the richest nations refused to deliver the $ 100 billion annual climate finance they were promised over a decade ago. They also blocked a “loss and damage” fund designed to compensate developing countries for irrevocable environmental damage caused by developed nations, denying vital financial aid to mitigate and adapt to future climate risks.

Most of the G20 nations are the largest historical emitters and colonial exploiters of countries like Bangladesh (Chair of the Climate Vulnerable Nations’ Forum) who are also the least responsible for the climate impacts they face. To the delight of Western scientists, but to the surprise of local citizens, emerging economies such as Nigeria, Africa’s largest oil and gas producer, and India, the world’s third largest greenhouse gas producer, have committed to becoming “net-zero” by 2060 and 2070, respectively. Without substantial financial protections offered by their richer counterparts nor sufficient technology and infrastructure to achieve this, developing nations will drastically fall short of their long-term climate goals and divert much-needed capital away from more immediate social development problems.

Buying time or wasting it?

Given the absence of an institutional or judicial body to account for one of these commitments, was COP26 a waste of time? From a sustainable technology standpoint, the simple answer is no, it has probably emerged as one of the winners. The Breakthrough Agenda initiated by the UK and supported by over 40 countries and 25 multinational companies, aims to develop affordable “clean technologies” in five “hard to break down” sectors (energy, road transport, steel, hydrogen, agriculture) responsible for half of global emissions and thus creating over 20 million jobs worldwide. BCG research suggests that, to achieve “net zero”, less than two-thirds of global emissions reductions can be achieved by existing technologies, while the remainder will have to be generated by new innovations that require at least $ 3 trillion in investment. year in the next thirty years.

However, most of these existing technologies are not yet commercially scalable and are far from affordable. This presents an opportunity to grow the pool of start-up founders in developing countries to create solutions in these five sectors supported by investors who understand local markets. Although a record $ 30 billion in venture capital finance in climate technology was raised this year alone, it represents less than 5% of total climate finance (around $ 640 billion in 2019) and has been disproportionately allocated to Western renewable energy entrepreneurs.

Without substantial financial protections offered by their richer counterparts nor sufficient technology and infrastructure to achieve this, developing nations will drastically fall short of their long-term climate goals and divert much-needed capital away from more immediate social development problems.

According to the Climate Policy Initiative, no sector is currently on track to reach the levels of investment needed to reach net zero, with private sector investment declining in most emerging economies. OECD estimates of climate commitments made by wealthy nations are increasingly scrutinized, with road construction projects and high-interest loans controversially classified as “climate aid.” In addition, most of the climate finance to developing countries has been earmarked for projects that reduce carbon emissions rather than helping people adapt to climate change, exposing them to health, livelihood and health risks. human potential. It is therefore imperative that public and private capital are supported by policies that promote both behavioral change and a more conducive regulatory environment for companies to thrive.

To reach the most vulnerable victims of climate change, investors need to engage with local stakeholders and clearly measure their impact across a range of metrics to tangibly define success. The growing need to raise funds for local, institutional and climate-centric impact and distribute this capital through innovative technology-based solutions will be imperative to achieving net zero in developing countries.

GLASGOW, SCOTLAND – Energy day at the SEC, site of the 2021 COP26 climate summit.

Getty Images Doing the Right Thing

If developed countries do not have the goodwill and morality to allocate sufficient funds for climate adaptation to the global South, the least they could do is facilitate the transfer of information and technology.

From lithium-ion batteries used in electric vehicles to biomass power plants, most of these cutting-edge innovations begin their journey within well-equipped Western R&D units that benefit immensely from grants and talent funded with public funds, both of which developing nations struggle to enjoy. Tesla and Orsted, for example, have received billions of dollars in government subsidies, and government-funded research labs have helped develop COVID-19 vaccines.

If developed countries do not have the goodwill and morality to allocate sufficient funds for climate adaptation to the global South, the least they could do is facilitate the transfer of information and technology.

To avoid replicating the obstacles vulnerable countries currently face in acquiring vaccines, intellectual property rights should also be revoked on climate technology patents to expand access and accessibility. As we are witnessing with the COVID-19 pandemic, the absence of a comprehensive approach to democratizing climate innovations will irreversibly intensify inequalities and accelerate the end of our planetary existence. Rather than waiting for the next COP to arrive, the time is near to commit climate technologies to all, not the few.

Doctor Faheem Ahmed (’20)

Dr. Faheem Ahmed, MD MPH MBA is an Impact Investment Advisor and ESG Analyst at Federated Hermes specializing in research, innovation and engagement in the global healthcare and technology sector. He is an honorary member of Imperial College, Global Shaper at the World Economic Forum and Young Leader of the Milken Institute.

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