Business of the environment goes on despite Trump pullbackーNHK WORLD-JAPAN NEWS

Key Concepts

• COP 30: The annual United Nations climate summit.
• Greenhouse Gas Emission Measures: Actions taken to reduce the release of gases that trap heat in the atmosphere.
• Net Zero: Achieving a balance between the greenhouse gases produced and the greenhouse gases removed from the atmosphere.
• Paris Agreement (2015): An international treaty aiming to limit global warming to less than 1.5 degrees Celsius above pre-industrial levels.
• Carbon Border Adjustment Mechanism (CBAM): An EU policy that taxes imported goods based on their carbon emissions during production.
• Decarbonization: The process of reducing carbon dioxide emissions.
• Renewable Energy: Energy from sources that are naturally replenished, such as solar and wind.

COP 30 and Shifting Climate Policy

The annual United Nations climate summit, COP 30, is currently being held in Bam, Brazil. Notably, the United States, the second-largest emitter of carbon dioxide, has not sent high-ranking officials to the summit under the Trump administration. This signals a shift in US policy, with an expectation of reduced support for private sector greenhouse gas emission reduction measures.

Business Initiatives and Technologies at COP 30

Despite the US administration's stance, businesses are actively pursuing environmental solutions. Japan, for instance, is a prominent participant, showcasing technologies at its pavilion. One seminar introduced a method for rejuvenating barren farmland and pastures using fertilizers and other materials, aiming to prevent deforestation.

Several firms are presenting innovative technologies:

• Cooling Materials: A material that lowers room temperatures by redirecting sunlight and blocking heat, addressing the growing demand for cooling solutions due to rising global temperatures.
• Wildfire Detection System: A system utilizing satellite data and ground-based sensors to identify wildfire risks.

Challenges and Commitments in the Private Sector

While some businesses remain committed to climate action, others are withdrawing from initiatives. The Net Zero Banking Alliance, established in 2021 with the goal of achieving net-zero emissions across lending and investment portfolios by 2050, ceased operations last month. This withdrawal followed the exit of several financial institutions after the return of Trump to office.

Seoshi Takijiro, a special adviser to the UN Environment Program Finance Initiative and head of a Japanese climate solutions network, commented on this trend. He stated that while some executives removed their names from the alliance to avoid "trouble" and are "waiting for the storm to pass with their heads down," their internal measures to reduce greenhouse gas emissions remain largely unchanged.

Underlying Drivers for Business Commitment

Seoshi Takijiro highlighted several key reasons for ongoing business commitment to climate action:

• Risk Recognition: The Paris Agreement's adoption in 2015 was partly driven by businesses recognizing the existential risk climate change poses to their operations. Executives now understand that failing to address climate change could lead to business cessation.
• Global Competitiveness: For some companies, reducing emissions is crucial for maintaining global competitiveness. For example, Apple suppliers are mandated to comply with Apple's net-zero goal by 2050.
• EU Trade Policy: The upcoming EU Carbon Border Adjustment Mechanism (CBAM), starting next year, will impose taxes on goods imported into the EU that are deemed emission-intensive during production. This incentivizes decarbonization for export-oriented businesses.
• Renewable Energy Advancements: Significant investment in renewable energy has led to technological advancements, making it the cheapest and most accessible energy source for many countries. Non-oil producing nations can generate their own renewable energy, enhancing energy security.

The Imperative of Decarbonization for Competitiveness

Seoshi Takijiro emphasized that switching to renewables is imperative for companies to remain competitive. He stated, "If companies and countries cannot shift to decarbonization methods, they will not be able to join the competition. And even if they could somehow participate, they would lose out." He concluded that in a world grappling with climate change, governments and businesses must pursue decarbonization "quickly, intensively, and extensively" to "get ahead and win in the global market."

Conclusion

While COP 30 may reveal governmental hesitations in tackling climate change, the business world appears to be largely continuing its push towards decarbonization. The underlying economic and competitive pressures, coupled with technological advancements in renewable energy, are driving this sustained commitment, even in the face of shifting political landscapes.