Can We Address Climate Change at The Same Time as Maintaining Positive Economic Growth? (By: Carys)

  I am going to dig into the image of the environment around the world for the last time and now. Do you know what it looks like? For the last time, it was seen that greenery, like flowers and trees, is jam-packed. The beach was indeed clean, with silky sand, and the ocean, like any other water resource, was crystal clear. The air was cool and invigorating. Many animals play and live there happily. No hustle or bustle or pollution occurred. But, on the other hand, this blissful moment can’t last any longer. When humans exist, a lot of bad things grow. Where are the green areas? Where are the animals? What happened to the beach area? To answer this, what can be seen is that the flowers and trees are cut down. Prior to this case, it also meant that the food resources and habitats for the animals were reduced. The animals attempt to flee, but some of them are slaughtered. This is such a saddening moment, and I am so sorry to hear this. Not only that, but the land that is empty was used for the development of buildings, housing areas, shop lots, arenas for sports and concerts, and factories. Roads are also established. The vehicles on the road and the factories emit toxic gases like carbon dioxide and carbon monoxide that “consume” all the natural refreshing air. Some animals who flee and cross the city to search for food and habitats, and the same goes for humans, inhale this filthy air and experience breathing complications; some of them nearly fall sick, are admitted to hospital, or crucially, die. The weather is increasingly sweltering. For the sea, the original color of it, blue, changes to other colors, some green, brown, white, and more. The sea animals that float on the sea do not survive. The entire beach was jam-packed with rubbish and toxic waste. After looking at these scenarios, in my own shoes, I felt so frustrated and awkward. It pops up in my mind to clean and conserve the environment.

  But here is a doubt: Can climate change be addressed at the same time as maintaining positive economic growth? Prior to this, the term "climate change" refers to a long-term shift in the typical weather patterns that have come to characterize the local, regional, and global climates of Earth, whereas "economic growth" refers to an increase in the quantity and caliber of goods and services that a society produces. Now, I am going to come back to the question I mentioned above. The answer is yes. Why? This is the answer……Green technologies that were invented boost the economic income. Why say so? This is because they should be promoted for various purposes, which are environmentally friendly, use renewable energy, are good and high quality, and are good for health and nature and low cost. For instance, solar panels that utilize solar energy convert sunlight to generate power for plantations and machinery. They can be sold physically or online for customers to purchase. Later, they will earn more money and boost economic growth. The use of electricity, like EV cars, has its outstanding potential in addressing climate change by reducing the emissions of toxic gases. They are widely sold globally nowadays. For example, in my country, Malaysia, there are a lot of electric cars, such as Chery, BMW, Proton e-mas 7, Mercedes Benz Smart, Haval, and Ora Cat. They are also green technology attributes that provide an expansion in economic growth. According to the estimation of the International Energy Agency (IEA), this renewable and clean energy source could employ over 40 million people by 2050, offsetting job losses in fossil fuel sectors. Besides that, it aids in promoting green growth and decoupling emissions from Gross Domestic Products (GDP). What does it mean when it comes to Gross Domestic Products (GDP)? It is a monetary measure of the total market value of the final goods and services produced and rendered in a certain period by a nation or nations, and it is usually used to measure the activity of the economy of a country or region, where its major components are consumption, government spending, net exports, which is exports minus imports, and investments. Alteration of any of these factors can raise the size of the economy. A lot of nations are proving that economic growth can be decoupled from carbon emissions through renewable energy, energy efficiency, and circular economic practices. There are 2 types of mechanisms of decoupling: absolute decoupling and relative decoupling. For absolute decoupling, environmental damage decreases when Gross Domestic Product (GDP) increases, while for relative decoupling, environmental damage increases at a slower rate than Gross Domestic Product (GDP). For instance, the European Union (EU)’s Gross Domestic Product (GDP) expanded by about 60% from the year 1990 to 2021 while mitigating emissions by 32%. There are a lot of factories trying to cut down on the use of fossil fuels like coal, oil and natural gas. Instead, most of them use electricity and renewable energy to operate machinery and more. There are some factory employers encouraging his or her employees to plant flowers and trees near the industrial areas. Integrating environmental goals into economic policies aids in incorporating environmental considerations into all aspects of economic planning and policymaking.

  Apart from that, technological innovations and efficiency gains are promoted too. Besides boosting creativity, critical thinking and decision-making, advances in battery storage, smart grids, and carbon captivation can mitigate costs while reducing emissions. Growing demand for sustainable solutions, both from consumers and governments, incentivizes companies to develop and enhance these technologies. Companies that embrace sustainability and invest in green technologies can gain competitive benefits in the global market. To give a few examples, solar and wind power are currently more affordable globally than coal. Numerous solar panels are affixed to the roofs with the intention of transforming sunlight into energy and subsequently reflecting it onto the plantations. Rainwater or used or dirty water is the natural method of irrigating the plantations. It contributes to electricity and water conservation. At the same time, overall economic resilience and worker productivity both rises. It reduces absenteeism and improves health outcomes. Water-efficient practices and infrastructure can make economies more resilient to climate change impacts like droughts and floods. This can be done by diversifying water sources, investing in water storage, and implementing water-saving technologies. Therefore, economies can better withstand water-related shocks and maintain stable economic growth. With it, investments are attractive. 

  Regions with well-managed water resources are more attractive to investors and businesses. A stable and reliable water supply is a critical factor that relies on water for its operations. Furthermore, a healthy environment, which is frequently associated with efficient water management, draws visitors and locals who support local economies through travel and real estate, manufacturing, and other industries. Job creation is improved. There are many water management initiatives, such as infrastructure development, wastewater treatment, and water conservation programs, which can create new career opportunities in various sectors, comprising construction, engineering, and environmental management. Therefore, cases of unemployment of workers can be reduced.

  Not only that, but it also aids in policy and investment shifts. Without impeding growth, carbon pricing schemes like taxes or cap-and-trade can encourage low-carbon innovation. In terms of green technology and innovation, renewable energy investments aid in the transition from fossil fuels to renewable energy sources like hydropower, wind, and solar power, which can reduce greenhouse gas emissions and generate the newest job opportunities in the renewable energy industry. Energy efficiency is promoted when investing in energy-efficient technologies and practices across various sectors, consisting of buildings, transportation, and industry, which can reduce emissions. The development and promotion of electric vehicles, public transportation, and bicycle infrastructure can all help to reduce emissions from the transportation sector and support sustainable transportation. To reduce resource depletion and environmental pollution, circular economy models promote 5Rs: reuse, reduce, repair, and rethink. Carbon pricing mechanisms, such as the implementation of carbon taxes or cap-and-trade systems, can encourage companies to reduce their carbon footprint from a policy and regulatory framework perspective. Setting clear environmental standards and regulations can encourage businesses to adopt sustainable practices. Providing subsidies and incentives for green technologies and sustainable practices can increase the speed of adoption. Investing in and supporting research and development in green technologies can drive innovation and cost reductions. Talking about the perspectives of sustainable investments, Environmental, Social, and Governance (ESG) investment is the main key. What is its role? It is shorthand for an investment principle that necessitates environmental and social problem-solving and corporate governance. Its considerations can sometimes be referred to as responsible investing, or in a more proactive case, impact investing. Financial interests and sustainability objectives are aligned when investment in businesses with strong Environmental, Social, and Governance (ESG) performance is encouraged. Utilizing green bonds and other financing methods to support sustainable infrastructure projects can mobilize significant capital for climate action. When it comes to public-private partnerships, associating with the private sector to finance and implement green projects can leverage the strengths of both sectors. Building and investing in climate-resilient infrastructure that can endure the effects of climate change, like extreme weather events, can reduce economic losses from the perspective of adaptation and resilience. Climate-resilient infrastructure that can withstand the impacts of climate change, such as extreme weather events, can lower the losses of the economy. Developing and implementing early warning systems for climate-related disasters can help communities prepare and respond productively. Promoting and implementing sustainable land use practices can mitigate the vulnerability of communities to climate change impacts. Green stimulus packages such as the United States Inflation Reduction Act boost Gross Domestic Products (GDP) while accelerating decarbonization.

  In addition, this helps with resilience and risk mitigation. Climate actions cut down long-term economic risks such as extreme weather that costs the global economy $300 billion and above annually. Investing in adaptation and climate-resilient infrastructure such as flood defenses and drought-resistant crops reduces future economic losses from climate disasters and preserves the growth of Gross Domestic Product (GDP). Nature-based solutions such as reforestation and wetland restoration conserve ecosystems while supporting industry sectors like tourism and fisheries. Funding and investment in research and development in renewable energy, energy efficiency, sustainable agriculture, and other climate-friendly technologies can drive innovation and create the latest industries. Facilitating the transfer of green technologies to enhancing and developing nations can help them leapfrog to a more sustainable development path. Implementing sustainable agricultural practices such as agroforestry, conservation tillage, and integrated pest management can improve food security, mitigate greenhouse gas emissions, and improve soil health. Promoting sustainable tourism practices such as eco-lodges, community-based tourism, and responsible wildlife viewing can reduce the environmental impact of tourism and create opportunities for local societies. Fostering multinational cooperation and financial support for climate action in developing countries is prominent in achieving secularly climate targets. Community engagement in the design and implementation of climate adaptation and mitigation strategies is essential for ensuring their effectiveness and social acceptance.  

  Finally, it aids in just transition and equity. Supporting laborers in fossil fuel industries via retraining ensures economic stability while shifting to a low-carbon economy. It means that it doesn’t leave workers, communities, or vulnerable groups behind. It protects their livelihoods. Inclusive planning is comprised inside it as engaging communities in decision-making to reflect local requirements and priorities. When it talks about phased implementation, rolling out climate policies gradually minimize economic shocks. Green is not only a color but also a growth driver. Climate actions can fuel economic growth when done equitably. As mentioned above, green innovation aids investing in clean technologies and spurs new industries and jobs. Climate-resilient systems and infrastructure mitigate long-term costs and attract investment too. Upskilling, also known as equipping workers with future-ready skills, boosts productivity and employment. Equity ensures fair distribution of costs and benefits, and climate policies don’t deepen existing inequalities. Targeted support is financial aid, subsidies, and access to green jobs for marginalized groups. It ensures access to resources by making sure all communities benefit from clean energy, transportation, and housing. Global fairness is enhanced by recognizing that those least responsible for emissions often suffer the most from climate impacts. In the aspect of policy guidelines for success, according to the World Economic Forum and the Organization for Economic Cooperation and Development (OECD), successful strategies comprise context-specific policies that are tailored to national and local realities, stakeholder engagement that establishes trust and ensure transparency, and public awareness campaigns to foster support and understanding.

  To conclude, climate change is a momentous phenomenon and needs to be addressed. But, when solving it at the same time as maintaining growth of the economy, this should be considered and decided rationally. Here is the last quote—save the earth, say no to climate change, and say yes to positive economic growth.