Wealthy Nations Fall Short in Combatting Climate Change, Study Reveals
A new study reveals that rich countries are not effectively addressing climate change, as no nation is on track to meet the 1.5°C target. The ASCOR Project indicates that wealthier nations perform no better than others in reducing emissions and highlights the pressing need for credible climate policies. Legal pressures are mounting as climate risks rise, but financing remains inadequate.
As climate change poses increasing risks, a recent study indicates that affluent nations are failing to commit adequately to initiatives intended to combat global warming. The findings from the Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) Project reveal that no country is on track to meet the 1.5°C climate target based solely on national pledges for emissions reduction by 2030. An analysis of 70 countries shows no significant advantage for wealthier nations concerning effective climate policy implementation.
Victoria Barron, chief sustainability officer at GIB Asset Management and ASCOR co-chair, emphasized the urgent need for credible governmental actions, stating that “Investors play a pivotal role in driving capital” and highlighted that robust climate and energy policies are essential for motivating investment flows. Investors believe that climate-related risks are not fully incorporated into market valuations, prompting academic inquiry into the supposed climate-sovereign debt doom loop.
The ASCOR findings come amidst growing legal pressure on governments accused of not safeguarding their populations against extreme weather events. As global discussions intensify, the International Court of Justice is scheduled to hear cases related to this issue next month. In the United States, the outlook is further complicated by the potential withdrawal from the Paris Agreement by the incoming administration.
In Europe, a backlash from corporations is challenging the commitment of policymakers to sustainable practices, as concerns regarding administrative expenses emerge. Established three years ago, ASCOR aims to assist investors in evaluating national climate responses. While Costa Rica and Angola are identified as nearing their 1.5°C benchmarks, the report notes that fewer than 20% of nations have resolved to cease the approval of new fossil fuel projects, and over 80% lack transparent commitments to eliminate fossil fuel subsidies.
The report highlights a shortfall in climate financing, revealing that more than 80% of wealthy nations are not meeting their fair share of the $100 billion annual climate finance target, subsequently increased to $300 billion at the COP29 summit in Baku. In response to the demand for greater transparency, ASCOR has expanded its analysis to include 70 countries. Positive developments include that 40 of these nations have instituted legal frameworks for climate action, and three-quarters have plans to manage associated risks effectively.
The issue of climate change threatens global stability, prompting scrutiny of how nations, particularly wealthier ones, are addressing this crisis. The ASCOR Project represents an initiative to assess countries’ efforts toward achieving climate goals, especially in the context of international commitments such as the Paris Agreement. Investors are increasingly seeking reliable data on governmental efforts, as their investment decisions are significantly impacted by national climate policies and their effectiveness in mitigating climate risks. Understanding the responses of both rich and developing countries to climate-related challenges is crucial for creating effective financial strategies and global frameworks.
In conclusion, the ASCOR Project highlights alarming gaps in the commitment of wealthy nations to combat climate change effectively. With no country on track to meet necessary climate targets and large deficiencies in financing, urgent action is required to ensure transparent and ambitious policymaking. The growing recognition of climate risks in investment decisions underscores the critical integration of reliable national climate strategies to drive substantial progress toward a sustainable future.
Original Source: www.bnnbloomberg.ca
