Climate change disaster is biggest threat to global economy in 2016, say experts
A catastrophe caused by climate change is seen as the biggest potential threat to the global economy in 2016, according to a survey of 750 experts conducted by the World Economic Forum (WEF). The report, prepared by the WEF in collaboration with risk specialists Marsh & McLennan and Zurich Insurance Group, comes a month after the deal signed in Paris to reduce carbon emissions. A failure of climate change mitigation and adaptation was seen as likely to have a bigger impact than the spread of weapons of mass destruction, water crises, mass involuntary migration and a severe energy price shock. The WEF cited links between climate change and involuntary migration or international security, noting that these often had “major and unpredictable impacts”. Cecilia Reyes, Zurich’s chief risk officer, said: “Climate change is exacerbating more risks than ever before in terms of water crises, food shortages, constrained economic growth, weaker societal cohesion and increased security risks”. (Guardian)
IMF calls for global carbon tax on ships and planes
The International Monetary Fund says a carbon tax on aviation and shipping would help deliver global climate goals. In a new report, published to follow the signing of the Paris agreement, it says carbon pricing should be “front and centre” in efforts to curb global warming. A charge of $30 a tonne on carbon dioxide embedded in international transport fuels could have raised $25 billion in 2014, the influential Washington DC-based body estimates. Levies on this sector are “promising”, and a possible source of climate finance – support for developing countries to go green and adapt to shifting weather patterns. Emissions from planes and ships, around 4 percent of the global total and rising, were not directly addressed in the Paris agreement. The International Monetary Fund noted there were “challenges” to imposing a levy, including the need for international coordination and legal issues, “but the practicalities should be manageable”. (Guardian)
Strategy
Access to Nutrition Index ranks world’s largest food companies
The world’s largest food and beverage companies still have a long way to go if they are to play their full part in tackling the mounting global nutrition crisis, a new report says. The Access to Nutrition Index is based on the premise that companies can work alongside governments, international organisations and civil society to address the spiralling ‘double burden’ of undernutrition and obesity. The 2016 Index places Unilever in first place, ahead of Nestlé and Danone, for their efforts to produce healthier products and ensure affordable pricing. Mars saw one of the biggest improvements since the last index in 2013, rising from 16th to 5th place. A separate sub-ranking evaluates the world’s six largest baby food manufacturers against the WHO’s International Marketing Code. The report concludes that, while some companies have taken positive steps since the last Index, the industry as a whole is moving far too slowly. “Given the global reach of their products, food and beverage companies have a critical role to play in helping to tackle the growing global health crisis caused by poor nutrition,” said Inge Kauer, Executive Director of the Access to Nutrition Foundation. (Access to Nutrition Foundation)
Energy
Renewables drew record $329 billion in year fossil fuels crashed
The fall in oil prices that has brought upheaval and cost cutting to the traditional energy industry spared renewables such as solar and wind, which raked in a record $329 billion of investment last year. The 4 percent increase in clean energy technology spending from 2014 reflected tumbling prices for photovoltaics and wind turbines as well as a few big financings for offshore wind farms, according to research from Bloomberg New Energy Finance (BNEF). “These figures are a stunning riposte to all those who expected clean energy investment to stall on falling oil and gas prices,” said Michael Liebreich, founder of Bloomberg’s research arm. While oil companies such as Exxon Mobil and Royal Dutch Shell eliminate jobs, renewables are enjoying a renaissance underpinned by rules designed to curb fossil-fuel emissions damaging the atmosphere.
For the first time, more than half of the world’s annual investment in clean energy came from emerging markets in 2015. China remained the biggest market for renewables, increasing investment 17 percent to $110.5 billion. Meanwhile, China announced a ban on new coal mines, and the country’s coal imports fell by 30% – the biggest drop on record – as the country sought to cut industrial overcapacity and curb pollution. (Bloomberg 1, 2, 3)
Report: US solar industry now employs more workers than oil and gas
The US solar industry now employs more workers than oil and gas, a new report from the Solar Foundation claims, with most of the jobs in power panel installation. Last year, the US solar industry grew by 20% for a third year in a row, according to the foundation’s National Solar Job Census 2015. By the end of 2015, it employed nearly 209,000 solar workers, more than those employed in oil and gas extraction. However, the growth in the solar industry was not shared equally across all types of jobs, only the jobs in installation increased. “Employees of installation companies accounted for 22,900 or 65% of the new jobs added in 2015,” according to the report. “The US solar installation sector employs 77% more people than the domestic coal mining industry. Since 2014, solar installation has created more jobs than oil and gas pipeline construction and crude petroleum and natural gas extraction combined.” (Guardian)
Image source: Alternative Energies by Jürgen from Sandesneben, Germany / CC BY 2.0
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