It is increasingly clear that action must be taken without delay in the fight against climate change, especially considering that we are already late. And, if nothing continues to be done, we run the risk of reaching a point of no return, within 30 years. "To keep the global temperature increase to less than 1.5ºC above pre-industrial levels, emissions must be reduced by 40% by 2030. If we do nothing, we risk a climate Armageddon." This is how forceful the deputy editor of the Financial Times, Martin Wolf, was at a conference in Madrid, in which he participated alongside the governor of the Bank of Spain, Pablo Hernández de Cos.
"So far we have done depressingly little. But, at least, the challenge is now recognized," Wolf defended. The journalist pointed out that an energy revolution must be faced that allows a change towards a more sustainable model, while maintaining economic growth.
In this sense, he argued that degrowth is not the solution to the problem, but technology is. "Technology is the only possible answer" to be able to reduce polluting emissions, he stressed. The good thing about all this, according to him, is that the cost of renewable energy has fallen dramatically, especially solar, as well as the price of batteries. "This transition is technologically and economically possible," he celebrated.
"Technology is the only possible answer," Wolf stressed.Despite this, the existence of technology to develop clean energy, and to be able to do so at a lower price, is a necessary condition, but not sufficient. According to him, if China, the United States, Europe, Japan, and India drastically reduced their emissions, they would allow the advance of climate change to be curbed.For this, the increasingly worse relations between the West and China do not help to achieve it. "This requires unparalleled cooperation in an increasingly nationalistic world," he stressed.
He also highlighted the essential role played by administration globally, ensuring accurate regulation and promoting incentives. In this area, the journalist proposed offering temporary subsidies for new technologies or setting deadlines for the gradual replacement of polluting vehicles. Another key issue in this energy transition is that institutions collaborate with companies, which can drive this transformation through investments.
Public investment is also required
Wolf was accompanied on the day by the governor of the Bank of Spain, Pablo Hernández de Cos, who agreed with the associate editor of the Financial Times that the solution to the climate emergency is technology. "Everything is in the hands of technology," he stressed, "and technology is something we can accelerate simply by investing."
In the same vein expressed by Wolf, Hernández de Cos indicated that this technological development towards a green economy can be fostered with the use of incentives, but also with public investment. The tool that the governor sees as optimal is through European investment such as the Next Generation EU funds. But these are not enough, considering that they were created to react to the pandemic and the environmental challenge goes further.
For Hernández de Cos, this emergency must be faced from a holistic approach that involves all policies and actors. "It is very evident to me that preventing climate change requires a holistic approach that involves all policies," he concluded.
The intervention by Wolf and Hernández de Cos took place within the framework of the Energy Prospectives sessions organized by Fundación Naturgy and IESE Business School.
Add The New Barcelona Post as your preferred Google source for free
Stay informed with the latest news.
