Combating climate change with the help of increased investment in policies and technologies could benefit the global economy, currently recovering from the ravages of the COVID-19 pandemic.
Charles Dumas, Chief Economist of TS Lombard, in a recent note, has stated that the work done on controlling climate change is very often criticised for its slow pace. He added that things may speed up once governments increase their spending in a post-COVID-19 world.
TS Lombard is a UK-based macroeconomic forecasting and investment research firm, headquartered in London.
Dumas, while speaking to CNBC, said by 2030, renewable electricity will cost half of coal and gas sourced power. He added that as the United Nations Climate Change Conference (COP26) approaches, the need of the hour is for the governments to take note of their key priorities. He said they should also collectively make investments in order to tackle the frequent issues that continue to impede renewable energy.
The COP26 is slated to be held in Glasgow in Scotland in November. It is tagged as one of the most momentous multilateral meetings on climate since the Paris Agreement of 2015. Dumas also spoke about energy transmission, which, he said, could be another bottleneck. He said the issues pertaining to transmission technology are major ones and involves expensive processes which need a lot of research and high levels of investment. He pointed out that areas like storage and carbon capture need heavy investments in countries that aim for net zero emissions or being carbon neutral.
Dumas highlighted the importance of public policy and the target of carbon neutrality. He said there is a need for a very clear public policy in this regard and the carbon tax -- which may face resistance in the US -- will be necessary.
Paul Steele, Chief Economist at London-based International Institute for Environment and Development, felt that investment in climate action and renewable energy will serve two major purposes -- tackling the climate crisis and simultaneously generating employment in the economies battered by the pandemic. He also added that renewable energy will entail labour-intensive employment in both developing and developed countries. Steele also said the investments made for a climate-friendly economy cannot have quick or short-term goals.
(Edited by : Shoma Bhattacharjee)
First Published: IST