Who emits the most CO2?

As of 2021 over 50% of the world's greenhouse gases (GHG) were generated by 4 countries; China, USA, India, and Russia with the first two taking up the lion's share.

Source (Our world in data)

Note that none of these countries have a carbon tax in place.

Which sector creates the most CO2?

As of 2019 electricity and heat generation created the most CO2

Source(Our World In Data)

How much is being spent and where?

Public and private climate finance almost doubled from 2011 to 2020, and may have reached up to $940 billion in 2021!

And of this money, most is spent on renewable energy generation.

But is this enough?

Avoiding the worst impacts of climate change could require $4.3 trillion a year by 2030; costs will only escalate as the Earth continues to warm.

What is being done about it?

The United NationsSecretary-General's Acceleration Agenda for 2023 outlines six critical actions for governments, businesses, and financial leaders.

1. Make good on the $100 billion annual promise to developing countries for climate action
2. Double finance to help countries adapt to climate impacts
3. Reform the World Bank and other development banks to make them fit for purpose
4. Replenish the Green Climate Fund in 2023
5. Operationalise the new loss and damage fund this year
6. Protect all people from climate disasters with early warning systems by 2027

What is the Green Climate Fund (GCF)?

The GCF is the world's largest climate fund, created by the Paris Agreement to channel finance to developing countries to fight climate change. Half its resources go to climate mitigation, and the other half to adaptation.

The fund partially supports climate justice through the lower cost of adaptation finance, which must be provided through grants or the equivalent. Further, half of the adaptation resources must go to the most climate-vulnerable countries, including small island developing states, the least developed countries, and African States.

In its first round of funding, from 2020 to 2023, the GCF raised $12.8 billion to improve the resilience of a billion people in 128 countries. A second round is underway to fund the GCF from 2024 to 2027, a period of urgent action for climate change and the Sustainable Development Goals.

The more we defer, the costlier it gets

Climate adaptation is becoming more expensive as the magnitude of climate change sets in. Countries may need to spend up to $300 billion a year by 2030 and $500 billion by 2050, according to the United Nations Environment Programme. Yet these estimated costs are 5 to 10 times greater than current funding flows.

What can your business do in Singapore?

There are more routes than ever for businesses to decarbonise, including but not limited to:

1. Undertake an energy audit funded by the government
2. Utilise a local PPA to adopt rooftop solar
3. Upgrade HVAC systems
4. Upgrade lighting systems
5. Upgrade your windows and insulation
6. Monitor and manage water usage.

This is a short list, but doing any and all of the above can make a huge difference. Upgrading to investment-grade LEDs can save you up to 30% on your energy bill and save you 100s of tonnes of CO2 every year.

Don't have the capital to undertake decarbonisation projects?

Here are 5 ways that you can fund your projects with low or little capital

1. Use an Energy Services Company (ESCO)
2. Use a Leasing model
3. Use an "as a Service model
4. Use Sustainability-linked financing -  Loans & Bonds
5. Use Government Grants

If you have the will, we can help you find a way! Get in touch with Ivan and he will be happy to help you play your part in both local and global decarbonisation!

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