UN Urges Swift Action for Climate Resilience

Industries worldwide are facing a critical challenge to reduce emissions by 50% by the end of this decade to align with the 2050 net-zero goals. A recent analysis has emphasized the need for increased investment in clean energy infrastructure to achieve this target. The urgency of protecting clean water, halting deforestation, and preserving endangered species has been highlighted in a new report compiled with BAE Systems.

The United Nations has set ambitious climate targets, including reducing global emissions by 45% by 2030 and achieving net-zero emissions by 2050. Governments, especially major emitters, are urged to enhance their Nationally Determined Contributions significantly and take immediate actions to reduce emissions. The report stresses the importance of acting swiftly to cut global emissions in half, stop and reverse nature loss, and achieve climate resilience by the end of this decade.

Currently, only 1% of the $2.7 trillion annual infrastructure investment is climate-resilient, and there is a need to increase this to $6.9 trillion by 2030. Investment in nature-based solutions must also triple to $400 billion a year in the same period. The report underlines the rising climate-related supply chain disruptions globally and the necessity for companies to manage these risks effectively.

Advanced technologies such as AI and remote sensing can assist companies in monitoring and identifying environmental impacts in their supply chains. Transitioning to secure and sustainable energy systems is crucial, focusing on enhancing energy efficiency, reliability, connectivity, and reducing emissions. Companies are advised to categorize their supply chain activities into sustainable and unsustainable operations to better understand their environmental impact.

Transitioning to a net-zero, climate-resilient future presents a significant opportunity to reshape the global economy. Trillions of dollars of investment are required in low-carbon technologies, nature-based solutions, resilient supply chains, and new business models. Companies and financial institutions that can assess environmental risks and align investment opportunities with transition objectives will gain a competitive edge in the evolving market.

Global annual investments of $2.7 trillion are deemed necessary to achieve net-zero emissions by 2050 and prevent temperatures from rising above 1.5 degrees Celsius this century. Renewable energy sources like wind and solar power are becoming primary electricity sources to support transport electrification and green hydrogen production. Scaling up battery production is also essential to meet climate and energy security goals set during the UN COP28 summit.