Using publicly disclosed GHG emissions reduction targets by companies in G7 economies as a proxy, a CDP’s analysis shows that current emissions reduction targets are leading to a 2.7°C decarbonization pathway — or 2.4°C if emissions from corporate supply chains, known as Scope 3 emissions are excluded. This ambition is well above the Paris Agreement’s goal to keep Earth’s temperature rise at or below 1.5°C, the upper temperature limit that is supposed to keep us on the safe side. It is important to note that + 1°C beyond Paris Agreement’s goal is likely to generate catastrophic impacts. To illustrate, the difference between 1.5°C and 2°C means 2.6 times more people are likely to be exposed to extreme and potentially dangerous heat events.
Based on these data highlighting a failure in containing GHG emissions, countries (especially in the Global South) have to prepare for worse. They need urgently to put more efforts (and money) on projects that cope with climate change effects especially in the water and agriculture sectors. Unfortunately, there is a structural imbalance in global climate finance that largely favors mitigation projects over adaptation projects.
Published by Wael Mohamed Aaminou
While living in the US, the 2008 financial crisis’ impact on the economy and people pushed me to question the purpose of my job as a financial consultant. I ultimately shifted gears to focus my advisory efforts on fostering a more ethical finance that puts the real economy, social welfare, and environment preservation at the center. With assignments in Northwestern Africa, Middle Eastern and Southeast Asian regions, this journey led me to challenge and shape Impact finance and Islamic finance ecosystems in as varied sectors as energy, healthcare, education, and agriculture.
Working in more than 10 countries has taught me that sustainable development challenges are complex, and that a viable solution would start by prioritizing efforts on most pressing issues when resources are limited. This is particularly true for climate change which transversally impacts virtually all SDGs. Today, as a sustainability finance advisor, I mobilize people and resources toward the adaptive challenge of building together the sustainable world that our children and planet deserve.
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