The cost of inaction on climate change too high - over 2 years ago

THE cost of inaction towards sustainable development will far exceed the cost of moving towards a low carbon economy.

So said Minister of Finance, Pravin Gordhan, speaking at the United Nations Environment Programme Finance Initiative (UNEP FI) Global Roundtable session in Cape Town today.

He said the current economic crisis gives us the opportunity to assess the need for sustainable finance and sustainable practices.

‘‘The G20 has made progress in reshaping the rules governing collective finance practices. The G20 has begun to raise questions about the need for a post crisis economic model… one that takes account of emerging countries.

‘‘Will short terms and greed be mitigated in the future? Will profit be the sole driver of innovation in the future? Is there the opportunity and – more importantly – the leadership to shift paradigms?’’

He urged banks to review their carbon strategies to facilitate finance for sustainable development and for private enterprises to be involved in climate concerns.

He said that financing sustainability could be the new way to help give the six billion people on the planet a set of public goods that would help meet the climate change crisis.

At a recent global editor’s conference on climate change held in Copenhagen, Danish Prime Minister Lars Lokke Rasmussen said the world has come a long way in addressing the challenges around climate change.

‘‘By now many countries have developed far reaching national emission reduction policies. They are developing low carbon development plans.

‘‘They realise that the green agenda is vital to combat global warming and at the same time part of the solution to the current ecocnomic crises.’’

• Representatives from the world’s top banks and financial institutions have converged on Cape Town for a two day summit to discuss ideas and negotiate with governments on climate change ahead of the Copenhagen summit in December.

It is hoped that a new treaty to protect the planet’s environment will be signed there. The treaty will replace the Kyoto Protocol which expires in 2012.

- City Press

Go Back