Global warming and green investment

When we are told by the United Nations that global warming is dangerously close to spiraling out of control, we feel betrayed by the world leaders who were supposed to take up appropriate policies long, long ago. Instead of taking pragmatic steps to reverse the situation, the leaders allowed their heavy industries to spew toxic gas into the air thereby contributing to the depletion of the ozone layer.

In the list of developed countries are the USA, China, Russia, Australia, Germany, France, the UK etc. The incidence of carbon emission as reported from these countries continues to raise the global temperature which is resulting in the melting of ice in the North Pole at an alarming rate. It is said that even in the Himalayas ancient ice has started to melt because of the warm climate. Melting of ice is raising the water level thus threatening many low lying areas including those in Bangladesh.                

According to a UN climate report, things have worsened to such a level that even if carbon emission is drastically reduced now it is  unlikely to prevent global warming of 1.5 degrees Celsius. Continued fossil fuel burning is also blamed for the worsening situation around the world at the moment.

According to the latest Intergovernmental Panel on Climate Change, “Climate changes are occurring in every region globally. The report defines changes that are unprecedented in thousands if not hundreds of thousands of years. It emphasizes that there is still time to act, but it must happen immediately. Limiting climate change demands strong and sustained reductions in greenhouse gas emissions from human activities such as burning fossil fuels.”

It is upheld by experts that there has to be investment in the right places to meet the climate goals or else global temperature will shoot past 1.5 degrees Celsius. Climate action, experts feel, requires significant financial investments, such as in new energy systems and infrastructure that can withstand climate change impacts.  

But the poor or developing countries do not have the required funds nor do they have the technology to do so. This is the reason why all countries agreed that industrialized nations with money and technological know-how must increase their financial support for climate action in developing countries, particularly the poorest and most vulnerable. Understandably, climate finance is aimed at reducing greenhouse gas emissions through funding renewable power like wind or solar. It also helps communities with climate resilient seeds despite droughts and other extreme weather.

 What measures can government, people and private companies take to help reduce the blight of global warming? Experts are talking about green investment to encourage companies and people to come forward with plans to minimize carbon emission by adopting various green projects. According to competent sources, green investment means, investment activities that highlight projects aimed at conservation of natural resources and at the same time working for production and discovery of alternative energy sources. Also it means implementation of clean air and water projects and other environmentally friendly business practices.

Also known as Eco-investing, it means investment is made to support or provide environmentally friendly products and practices.  As the detrimental impact of carbon emission on the environment is becoming more and more apparent with the passage of time, eco investing is being discussed seriously in the financial world.

Among the green investment projects are Renewable energy including solar, wind, tidal current, wave and hydro technology; Energy Storage companies that develop and use technologies to store large amounts of energy; Biofuels companies that use or supply biological resources like algae, corn or waster wood to create energy or fuel; Geothermal companies that use or convert heat to electric energy and hydroelectricity companies that harness water energy to make electricity.   

So, once green investment starts to bring dividends will big companies continue to invest in fossil fuels? While many big players are saying they won't, others remain skeptical about green investment.