Change the world not changing climate

Speaking at an economic forum in Davos, the World Bank President Jim Yong Kim called the coming year "the year of fight with climate change" and called on financial leaders to take responsibility for this fight.

The Davos Forum founder Klaus Schwab chose for the Forum 2014 a very promising topic "Changing the World." Prior to the meeting in Davos, the World Economic Forum (WEF) published a study of global risks in the short and long terms. The document notes that the main problems remain: key economies crisis, shortage of drinking water and unemployment. The top 10 risks include climate change, cyber attacks, the food crisis, natural and manmade disasters.

Science and business recognize that climate change is causing extreme weather events and natural disasters, such as heat wave in Europe in 2003, the drought in East Africa in 2011, and the strongest for the past half-century drought in the United States in 2012. Damage in different countries from similar phenomena is projected at the level of 1 to 12 % of GDP annually in the next few years, and these losses will increase up to 19 % of GDP by 2030.

The Minister of Commerce and Industry of the Philippines affected by climatic events told attendees of the Economic Forum that studies show: about 25 % of companies in the segment of small and medium-sized businesses are not able to resume the activities affected by the disaster.

Experts of the World Bank, Deutsche bank, and the OECD under supervision of the former President of Mexico, Felipe Calderon have prepared the report "Review of environmental investment: ways and means to access private finance for green growth" for the World Economic Forum in Davos. The report notes that greenhouse gas emission reductions, which relate to climate change, are not fast enough.

Speaking in Davos, the UN Secretary General Ban Ki-moon noted that, unfortunately, there is no sufficient progress due to different national interests and the lack of a global perspective on the issue of climate change. Addressing global investors, Ban Ki-moon stressed that today we need trillions of dollars of investment for "transition from brown to green economy."

The WEF experts believe that up to 65 % of the projected losses due to climate change can be avoided by complex adaptation of vital infrastructures (drinking water, construction of protective structures, etc.), but this can be achieved only through the combined efforts of business, government and civil society organizations.

According to experts of the World Economic Forum, "only an immediate decision to allocate annually on the greening of the economy $ 700 billion by 2030 is able to provide its long-term growth. Otherwise, the world will fall asleep in the old modes of production, and environmental disasters will become more expensive. The world economy needs additional investment in environmental technologies, $ 14 trillion by 2030. "

Only such measures can ensure long-term growth and prosperity, meet the needs of the growing world population, which will be 9 billion people by 2050, reduce greenhouse gas emissions and improve efficiency of utilization of natural resources.

To do that, it is enough to increase annual government spending on the environment up to $ 130 billion from the current $ 96 billion. According to the authors of the review, this will attract further $ 570 billion of private capital per year. The money shall be directed to development and implementation of low-carbon technologies - the only thing that can save the world from global warming. Greening is needed in all sectors - from energy, transport and construction to forestry and agriculture.

The report's authors are sure that the amount of money needed to be allocated by different countries is not so big when one considers that environmental catastrophes are much more expensive. So, just to eliminate the effects of Sandy hurricane in the fall of 2012, the U.S. government was forced to spend $ 50 billion. The experts warn that without action taken now, the world will stagnate in environmentally hazardous production methods.

Felipe Calderon underlines: "Obviously, we are faced with an environmental crisis that could potentially have a devastating impact on the global economy. Economic growth and sustainability are interlinked. One cannot have one without the other, and environmental investments are conditions to achieve both goals."

Russia in Davos once again stood apart from the discussion of climate change. According to observers, this time it urged the global business community that it is trying to change its economy and create investment climate. Meanwhile, illustrations to the authorities' determination are mainly deals with major multinational companies, rather than the triumph of the "green economy" and breakthrough innovative ideas ...