Global Compact International Yearbook 2016

The
De-
Carb
Diet
To comply with global climate targets, we have to reduce our carbon footprint – no ifs, ands, or buts.
Nevertheless, there are a lot of challenges we need to face first.
By Dr. Elmer Lenzen
Last year’s UN Climate Conference in Paris was truly a
historic moment for mankind and its sustainable development:
The key result of the COP 21 was an agreement
to set a goal to limit global warming to less than 2 degrees
Celsius compared to pre-industrial levels. In addition, the
conference also identified the enemy we have to fight: carbon
dioxide (CO 2
) and all the other greenhouse gases that are –
as a matter of routine – converted into CO 2
equivalents. To
comply with the 2-degree goal, we have to reduce carbon
emissions to almost zero by the middle of the 21st century. So
the magic buzzwords in blogs, speeches, and the rumor mills
are “decarbonization” and the “low-carbon” – or even better,
“zero-carbon” – economy. But to be honest, carbon is not a
problem per se. It is the foundation of life on this planet. The
aggregate state of carbon is the problem: When it takes the
form of a fossil in the ground, it is completely unproblematic.
As a greenhouse gas in the air, it causes global warming. This
is where all carbon strategies come in.
Fossil fuel divestment. The Guardian offers a great explanation
of this concept by writing: “The global movement for fossil
fuel divestment is asking institutions to move their money out
of oil, coal, and gas companies for both moral and financial
reasons.” The concept arrived in mainstream thinking when
the Rockefeller family said in March that they wanted to divest
from fossil fuels as quickly as possible, including its holdings
on ExxonMobil – the company that brought the Rockefellers
their fabulous wealth.
Carbon taxation. An oversized carbon footprint is not just
a problem of the explorative and energy industry. It can be
found in all sectors of the economy. This is why experts say
that we have to put a price on carbon. Lise Kingo, Director
of the UN Global Compact, is one of them: “We believe that
setting a $100 internal price on carbon is one of the most
effective ways to drive climate deep into corporate strategy
and investment. While leading companies have taken steps
to price carbon, we need to see an ascent in ambition and
price across the board.”
Public regulation. It is obvious that self-regulation of the markets
does not work in driving decarbonization into the right
direction, at the right pace. This is why an increasing number
of public authorities are imposing regulations: California, for
example, has very strict legislation, as Volkswagen is learning
the hard way. The European Union and China follow next. Other
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Global Compact International Yearbook 2016