Climate transition is complex. Carbon tax across the globe will likely become a reality soon. Proceeds could be used to support vulnerable households for nature resiliency. Multilaterals, viz. the IMF, ADB and even the private sector selectively could explore 'debt for nature' or 'debt for disaster resilience' swaps to preserve the ecology, beaches, forests, mountains and natural resources
Climate is increasingly becoming a conversation starter. Asia is facing heat waves and flooding. Protecting nature and climate change are defining issues of our generation. The issues include soil degradation; excessive groundwater, chemicals and fertiliser use; carbonisation; and weather events. Nature is in peril, a minefield, and correction is needed.
Urgency in tackling nature's hindrances is the need, and is increasing by the hour. To help achieve Asia's climate ambitions, politicians, finance industry, built environment sector, regulators, employers and the media have a key complementary role to play.
Is politics a barrier to tackling climate change? Recognising nature as beyond politics, politicians are gaining public sympathy by becoming climate champions. Candidates reflecting green credentials were favoured by environmentally-conscious young voters in the recent elections in Australia, Germany, France and Norway.
Following the elections, immense competition is emerging for implementation as no politician wants to be associated with failure.
Taking the cue, governments in Asia must release and update their master policy on protecting the natural capital in promoting ecosystems, habitats and the economy, and develop nature indicators.
Pressure is growing over inaction on fossil fuel emissions. Tech, backup processing, and supply chain businesses fear losing jobs as European and US businesses demand low carbon solutions in their supply chains and service centres housed in Asia.
In a powerful market signal, over 350 businesses worldwide have signed up for the RE100 initiative, committing to use hundred percent renewable energy. Asia must take cognizance and protect job losses.
The Philippines, in partnership with the Asian Development Bank (ADB), is moving forward to speed up the closure of its coal power plants. US SEC has released a draft guidance requiring companies to report independently-certified greenhouse gas emissions and the energy they consume.
Four European governments have been sued by five energy companies to foot the bill for stranded fossil fuel assets. Governments should not rescue carbon or stranded assets. A sound climate information architecture that facilitates disclosure, classification and data reliability to prevent systemic risk buildup is required.
Nature loss creates material financial risks. Despite climate awareness, post pandemic, investors have made more money in coal and fossil fuel assets.
Giving a strong signal, police in Germany recently raided offices of Deutsche Bank's asset management arm to probe green washing allegations.
Finance industry can help clients by identifying negative consequences of nature loss, such as valuation losses and multiple rating downgrades. Financial regulators must signal the move to shift capital towards decarbonisation, requiring clients to assess nature when developing investment plans.
One in 25 houses in Australia is likely to become uninsurable by 2030 due to climate risks. US Fed has released guidance for lenders' increased flood insurance responsibility for real estate loans.
Built environment professionals must address sustainability concerns. Property, design and construction industry represent 40 percent of global energy use and emissions, double the emissions emitted by the transport sector.
Steel and cement each account for 8 percent of global emissions. The construction industry, facing a high risk of stranded assets, has a responsibility to present green credentials.
Retrofitting of existing buildings is an alternative. Through deep retrofitting, energy use in buildings and average annual expansion of floor area could reduce.
A Cambridge university report suggests that a 'low build future' scenario is on the table, requiring new and 20 percent of existing buildings to be zero carbon ready between now and 2030, and 50 percent of existing buildings to be ready by 2050. This scenario requires tweaking to reflect principles of equity and social justice.
The International Monetary Fund (IMF) suggests crafting labour market policies so as to promote greener jobs through training, transition towards lower emission jobs, reduce incentives for continuation of polluting jobs, and assign a green intensity measure to each occupation.
Employers are suggested to hire climate-abreast new staff to comprise 20 percent of the total staff by 2030, and 50 percent by 2040.Asia's media too has a growing responsibility in serving insufficient climate risk informed population.
Asia is fast catching up with Western news media that publish substantially more stories mentioning 'climate' and 'nature'. Media now vets economic, business and policy reporting through nature's lens. By blending nature in its reporting, media is garnering trust.
Media's paid subscribers, especially the young, and families with growing up students, prefer global coverage on climate, sports and the economy.
Climate transition is complex. Carbon tax across the globe will likely become a reality soon. Proceeds could be used to support vulnerable households for nature resiliency.
Multilaterals, viz. the IMF, ADB and even the private sector selectively could explore 'debt for nature' or 'debt for disaster resilience' swaps to preserve the ecology, beaches, forests, mountains and natural resources.
A debt for nature swap has been mooted in Sri Lanka. The aim is to inculcate nature-responsible behaviour in highly indebted, transition, frontier or small island economies. An orderly shift through market-based approaches is necessary.
Speed and scale are key. Journey time from drawing room talk to ground reality needs shortening.
Sagar is a former senior staff of the ADB, Philippines
A version of this article appears in the print on June 27, 2022, of The Himalayan Times.
