Climate action needs to be more ambitious: UN Special Envoy Mark Carney

“Countries must pursue an increasingly ambitious climate policy. Just like we see an increase in investments for clean energy, we need to see climate action becoming increasingly ambitious,” stated Mark Carney, UN Special Envoy for Climate Action and Finance, Co-Chair, GFANZ and Chair and Head of Transition Investing, Brookfield Asset Management at the B20 Summit India 2023, organised by the Confederation of Indian Industry (CII), the B20 India Secretariat, on August 26.

According to him, over the last few decades, different shocks related to finance, Covid-19 pandemic, geopolitical changes, supply chain disruptions and climate change, to name a few, have affected the trajectory of global growth. Conservative estimates of economic costs of a BAU (business-as-usual) scenario of global temperatures rise of 2.5 degrees Celsius will be no growth for a decade for the balance of this century.

He mentioned that extreme weather events such as heatwaves, wildfires and floods in different parts of the world this year are consequences of climate change. According to him, annual global growth has reduced by 0.5% due to these events. Current trends indicate that the remaining carbon budget to keep global temperatures below 1.5 degree Celsius, will be exhausted by 2030. He added that while there is growing momentum in net zero transition, there is a risk that global commitments will fall short of what is needed.

Mr Carney spoke about the benefits of a global net zero transition. Firstly, it will lead to a multi-decade investment boom. Secondly, it will lead to value chain optimization, which will have productivity benefits. Thirdly, lifestyle changes will lead to greater demand management. Finally, he said that the transition will promote innovation and development of entrepreneurs who will be able to provide solutions at a scale that is needed.

While concluding the session, he suggested five principles that G20 economies could adopt to support global growth and finance the climate sustainability transition: pursue increasingly ambitious climate policies, involve the entire economy, provide clear timelines for ramping up new solutions, ensure a just transition, and recognise the importance of the ‘time value’ of carbon.

Mr Carney endorsed the B20 India Task Force on Financing for Global Economic Recovery recommendation on private sector contribution towards funding the climate transition, similar to India’s mandatory 2% contribution of profits towards CSR activities.