Verbatim | May 04,2019
Oct 23 , 2021
By Bjorn Lomborg
In their bids to showcase climate leadership ahead of the upcoming UN Climate Summit in Glasgow (COP26), world leaders are once again talking of ambitious carbon reduction targets. US President Joe Biden, for example, has set the goal of creating "a carbon pollution-free power sector by 2035 and net-zero emissions economy by no later than 2050." Most rich nations' governments have formulated similar ambitions.
Unfortunately, that target will be prohibitively expensive. A new study in the renowned journal Nature shows the cost of 95pc reduction by 2050 — almost Biden's net-zero — would cost 11.9pc of GDP or more than 11,000 dollars present-day dollars for each American every year.
Twenty-four years have passed since the adoption of the Kyoto Protocol, the first major global agreement promising to cut carbon emissions. Since then, the world has hosted hundreds of climate summits and rich nations have reliably talked green; but emissions have kept increasing because no leaders want to stick their citizens with the huge price tag.
In a very frank analysis of the last decade of climate policy, the UN calls the 2010s a "lost decade." It cannot tell the difference between what has happened and a world that adopted no new climate policies since 2005. Just think about that: after all these climate summits and all these climate promises, when looking at the actual emissions we cannot tell the difference from the world we are in and a world where we did not care to do anything about climate since 2005.
That puts the challenge with COP26 in perspective. World leaders can choose to do what they have done over decades and contribute to yet another climate meeting in a world overflowing with well-meaning climate summits. Nation after nation will show up and make nice-sounding promises like transforming its electricity sector (which is responsible for only 19pc of all the energy the world consumes) to renewables. There is a good chance those promises will eventually be revealed to be just as hollow as the last decades' worth of promises because voters will reject the bill.
Or leaders could finally go down a different path.
The real challenge with the current approach to climate policy is that as long as cutting emissions is expensive, leaders will talk a lot but do little. In the rich world, this is to avoid following in the embarrassing footsteps of French President Emmanuel Macron who had to backtrack to the yellow vest movement after proposing a modest hike to gasoline prices. In the poorer world, nations have much more important priorities, like driving economic growth and getting their populations out of poverty.
What is needed is a much stronger focus on green energy research. If the world could innovate green energy that was cheaper than fossil fuels, we would have solved global warming. Everyone would switch, including Asia, Africa and Latin America. Working with 27 of the world's top climate economists and three Nobel Laureates, my think tank, the Copenhagen Consensus, found the most effective, long-term climate policy is in investing a lot more resources in green R&D.
During the 2015 Paris climate summit, more than 20 countries promised to double R&D spending on green energy innovations by 2020. Unfortunately, they are failing this promise, too.
Instead of making big and expensive promises that future governments will have to backtrack on once citizens protest rising power bills, leaders should immediately commit to spending much more on green R&D. Not only have most nations already made that promise but compliance can be verified within 12 months. And the total cost for each nation will be much lower than current climate policies. For 2030, our Nobel economists suggested that the world increase its spending by another 70 billion dollars a year. Compare that to the 195 billion dollars we are currently spending on subsidising ineffective green energy.
At COP26, world leaders would be well advised to not repeat what has failed the last decades, but emphasise a cheaper, smarter better way forward that will actually help fix climate change: Invest dramatically more in green R&D to make sure we innovate technologies that can help the whole world to cheaply switch from fossil fuels.
PUBLISHED ON
Oct 23,2021 [ VOL
22 , NO
1121]
Commentaries | Dec 07,2019
Exclusive Interviews | Jan 07,2024
Fortune News | Oct 30,2022
Radar | Apr 03,2021
Commentaries | Feb 13,2021
Photo Gallery | 96729 Views | May 06,2019
Photo Gallery | 88910 Views | Apr 26,2019
My Opinion | 67166 Views | Aug 14,2021
Commentaries | 65758 Views | Oct 02,2021
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...
Apr 6 , 2024
In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...
Mar 30 , 2024
Ethiopian authorities find themselves at a crossroads in the shadow of a global econo...
Apr 20 , 2024
Ethiopia's economic reform negotiations with the International Monetary Fund (IMF) are in their fourth round, taking place in Washington, D...
Apr 20 , 2024 . By BERSABEH GEBRE
An undercurrent of controversy surrounds the appointment of founding members of Amhara Bank after regulat...
An ambitious cooperative housing initiative designed to provide thousands with affordable homes is mired...
Apr 20 , 2024 . By AKSAH ITALO
Ethiopia's juice manufacturers confront formidable economic challenges following the reclassification of...