WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 31
Global
Outlook
Enhanced companies and citizen’s
contributions:
Companies: One must salute the efforts of many companies that
are committing on a trajectory to reduce carbon emissions by
2030 as it is an important operational step on the 2050 net-zero
129 The GHGs included in the framework are carbon dioxide (CO2), methane (CH4), nitrous oxide
(N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulphur hexafluoride (SP6), and nitrogen
trifluoride (NF3) They are measured in CO2 equivalent
130 Scope 1, Scope 2, and Scope 3 is a classification system for greenhouse gas (GHG) emissions a
firm is creating through its operations, energy usage, and the wider value chain.
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trajectory. Beyond the personal convictions of their leaders,
these commitments are taken by companies under pressure
from the rating agencies and proxies and from their employees
that want to work for environmental conscious Companies.
Scopes 1,2, 3 are measuring GHG129 emissions over different
perimeters.130 Most companies are mastering scopes 1 and 2
emissions. It is less the case for scope 3 emissions that are all
emissions a firm is responsible for, but which happen outside
of its walls. Scope 3 emissions calculation requires wide-scale
collaboration along the value chain raising concerns around lack
of information, data quality and confidentiality, Generative AI
could provide help in those calculations.
WEMO 2024
126 in 2022 developed countries provided and mobilised a total of $115.9 billion in climate finance
for developing countries, exceeding the annual $100 billion goal for the first time
127 https://blogs.worldbank.org/en/ppps/laser-focused-bridging-climate-finance-gapcop28#:~:text=To%20be%20specific%2C%20that%20growing,COP28%20President%20
Dr.
128 Reuters report May 23, 2024
In conclusion, during the last years, in developed countries,
there was noteworthy progress in financing energy transition.
However, the needs of developing countries (that will become
the larger GHG emitters) are not well addressed and despite
donor countries efforts, there is a huge gap between the needs
and the financing commitments. Fixing these financial issues is a
key success factor for achieving Paris accord climate objectives.
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Developing economies: At the COP 28, the growing gap between
the needs of developing countries for adaptation efforts and
action to mobilize and provide support to protect people
from climate extreme has been pointed out. To be specific,
that growing gap to fund the climate transition equates to the
difference between the $100 billion annually committed by
donor countries126 and the more than $2.4 trillion needed per
year.127
In addition, some analysts pointed out that rich countries are
overstating their contributions to the $100 billion pledge,
because a portion of their climate finance flows back home
through loan repayments, interest, and work contracts. In
addition, around 20% of the loans are at market-rate interest
which is not the norm for climate-related and other aid projects,
which usually carry low or no interest.128
It has also to be verified that receiving countries are using these
funds for energy transition projects.
Also, closing coal mines, polluting plants (as coal fired plants)
or small coal fuel furnaces will generate an economic cost and
job losses.
Subsidies to offset these costs in middle- and low-income
countries (excluding China) may therefore be essential and
could amount to around $0.3 trillion a year by 2030.
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