This case study aims to offer a synthesis and solutions to the question "How can the world achieve inclusive economic growth while combating climate change and other natural resource challenges?". With an ever-increasing pollution rate and a growing population, climate change is arguably the biggest environmental challenge of our time. An increase in economic activity and the environment is often portrayed as being in conflict with one another. The purpose of this report is to combat this perception and connect the missing links between green and economic growth. This will reveal a new understanding of green economic growth and prove that you can grow economically while being kind to the earth. The environment and the economy are directly related as the environment contributes directly and indirectly to the economy. Achieving sustained economic growth will require absolute decouple of the production of goods and services from their environmental impacts. In order to achieve this while keeping the global temperatures below 1.5˚C, we need to make the switch from dirty fossil fuels to 100% clean renewable energy. Moving to a sustainable economic growth path will not happen overnight, but it is essential if we are to secure long-term economic growth and make the economy resilient to risks in the future. Many factors indicate that there are plenty of solutions to how the world can achieve inclusive economic growth while combating climate change and other natural resource challenges. The main recommendations discussed include:
• Increase engagement in the use of clean energy like wind, wave, tidal and solar energy.
• Make further direct investments in green technology and innovation.
• Actions towards population stabilization can be taken, all from family planning programs to education.
• Set clear targets to bring our carbon pollution down to net zero by 2050.
9.0. Body – Introductory Section
9.1. The research topic is "How can the world achieve inclusive economic growth while combating climate change and other natural resource challenges?"
9.2. The world continues to face a threefold challenge: expanding economic opportunities, social equity and addressing environmental factors. The global environment and economic security are indelibly intertwined. A changing climate will affect our economy, ecosystem and, the way of life. Climate change is arguably the biggest environmental challenge of our time (Reynolds, 2018). There is scientific evidence that climate change is occurring, and that human activities are the primary driver by emitting greenhouse gases (EPA, 2018). Increasing greenhouse gases lead to natural-resource depletion and puts existing business models at risk. We already experience extreme climate events such as floods, storms, cyclones and, droughts. The time for global action is to respond to the increasingly urgent challenge of human-induced climate change (Group, 2017).
An increase in economic activity and a healthy environment is often portrayed as being in conflict with one another (EUEuropa). Natural resources are vital for securing economic growth and development, not just today but for future generations. Many natural resources and ecosystems services are under pressure, making it drastically important to change the current way we consume environmental resources (Tim Everett, 2010). There are already many affordable alternatives to fossil fuels, and it is absolutely possible to make the switch from dirty fossil fuels to 100% clean renewable energy around the globe.
By 2050, the world is expected to have 9 billion people, which is 60% greater than today (UN, 2017). Meeting the demand for this fast-growing population may be challenging, but it is not an impossible task. It becomes drastically more important to share our current resources, promote innovation and deploy new technologies.
9.4. Information is gathered from both primary and secondary sources. An interview was conducted as a primary source and printed material is used as a secondary source. The research methods include an interview with Abbie Reynolds, Executive Director at Sustainable Business Council. This interview investigated how the transition to a low emissions economy is an opportunity for innovative growth.
9.5. The four major sources of information include:
1. An interview with Abbie Reynolds, Executive Director from Sustainable Business Council.
2. "Economic Growth and the Environment" by Tim Everett, Mallika Ishwaran, Gian Paolo Ansaloni and Alex Rubin, 2010.
3. "PROTECTING THE ENVIRONMENT AND ECONOMIC GROWTH: TRADE-OFF OR GROWTH-ENHANCING STRUCTURAL ADJUSTMENT?" by EU Europa.
4. "The Role of Population in Economic Growth" by Peterson, E. Wesley F, 2017.
9.6. The limitations of the report include the fact that there might be a lack of data on the topic of the environment and the economy. Other limitations include that the report was researched by Eirin Harterink alone, with no internal and external validity. This may impact or influence the interpretation of the findings that were researched. There was also a time constraint, which resulted in the ways the information was gathered.
10.0. Centre section of the body
10.1. Scientific evidence
Scientific evidence for global warming is clear. The evidence for rapid climate change is compelling with evidence such as rising temperatures on Earth, shrinking ice sheets, rising sea levels and, ocean acidification. We have created more of a carbon dioxide burden in the Earth's atmosphere than we have in the 800,000 years that we have the history for (Ministry of the Enviroment, 2018). The average land temperature has warmed nearly 1°C in the past 50 years as a result of human activity such as the burning of fossil fuels, deforestation and, industrial activities. The result: climate disruption. This change in temperature has environmental, social and economic impacts (Shaftel, 2018).
Figure 1. Temperature data showing rapid warming in the past few decades. (Sutherland, 2017)
An argument has been that climate change will be too expensive to fight. If you think fighting climate change will be expensive, calculate the cost of letting it happen (Disparte, 2017). The effects of climate change have already killed an estimated 315,000 people every year, and more than 700 mammals and birds are facing extinction (Johnston, 2017). Healthy oceans provide 50-70% of our oxygen, 20% of our protein and 30% of our oil and gas. They are suffering, and this is just the beginning. It is predicted that when global temperatures rise more than 2°C, it will lead to potentially worse catastrophic problems. There will be more flooding, more drought, more disease and more war causing destruction of entire ecosystems and species (GreenPeace, 2018).
However, most concerns with respect to climate change are related to its potentially dramatic effects on economic activities (EUEuropa).
10.2. How pollution affects the economy
The effects of climate change creep into the economy as we see consumers and organizations focus on renewable energies, while slowly moving away from fossil fuels (Reynolds, 2018). The relationship between economic growth and the environment is complex with several different drivers come into play such as (i) the scale and structure of the economy, (ii) changes in technology that may reduce the environmental impacts of production and (iii) consumption decisions whilst also driving economic growth Economic and environmental performance must go hand in hand. The natural environment is central to economic activity and growth, contributing directly (providing resources and raw materials such as water and timber) and indirectly (carbon sequestration and water purification). Therefore, natural resources are vital for securing economic growth and development, not just today but for future generations (Tim Everett, 2010).
Figure 2. Growth is green. (Gibbard, 2016)
Figure 2. Growth is green. (Gibbard, 2016)
Economic growth contributes to the investment needed to improve the efficiency of resources such as energy, water and, materials, or by adopting new production techniques and product designs. Many natural resources and ecosystems services are under pressure, making it drastically important to change the current way we consume environmental resources (Tim Everett, 2010).
IKEA sold $37.6 billion worth of furniture in 2016. The same year, the company turned a profit by recycling waste into some of its best-selling products. Before, this waste had cost the company more than $1 million per year (The Triple Bottom Line, 2018). IKEA is now on the road to only use renewable and recycled materials by 2030.
10.3. Renewable energy
Real, technically feasible, affordable alternatives to fossil fuels exist now. It is now possible that renewable sources meet virtually all of the worlds energy needs. In a green economy, we would see, more renewable energy, electric cars, hydrocarbon, energy efficient appliances, water harvesting, and a tax on the use of carbon (ucsusa, 2017). Renewable energy from a source that is not depleted when used, such as solar, hydro and wind. A green economy is defined as "an economy that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities" (Europe, u.d.). The aim with a green economy is to maintain a sustainable development without degrading the environment. In other words, achieve a strong economy that provides a better quality of life for all on the planet.
Figure 3. Global renewable energy consumption, terawatt-hours. Total renewable energy consumption over the long-term, measured in TWh per year. Traditional biofuelds refer to the consumption of fuelwood, forestry products, animal and agricultural waste (Smil, 2017).
In order to achieve this while keeping the global temperatures below 1.5˚C, we need to make the switch from dirty fossil fuels to 100% clean renewable energy. On top of this, we need to bring our carbon pollution down to net zero by 2050. Making this switch will be better for people, communities and, businesses all over the world. And the change is already underway (WWF, 2018). According to Reynolds New Zealand's electricity system is 85% renewable, as has pledged zero carbon by 2050. Countries such as Albania, Iceland and, Nepal are already 100% renewable as % of total generation in 2015 (EIA, 2018).
10.4. Population
By 2050, the world is expected to have 9 billion people. One of the major effects of such population growth is the negative impact it is having on the earths ecosystem, such as the demand for food will be 60% greater than it is today (UN, 2017). High population growth in low-income countries may slow their development, while low population growth in high-income countries is likely to create social and economic problems. Lower population density provides a greater individual share of resources such as water, energy and food. Actions towards population stabilization can be taken, all from family planning programs to education. Many argue that policies to reduce the world’s population are crucial in realizing a human population that can be sustained without putting unsustainable strains on resources and the environment. Most of those who believe the world is overpopulated focus on the potential exhaustion of vital resources such as farmland, water, and raw materials. The implicit assumption is that future technological innovations will be unable to overcome resource shortages created by the needs of the growing population without causing environmental damage (Peterson, 2017).
Figure 4. Countries by population size (Countries by Population Size , 2018).
10.5. Innovation
Meeting the increased demand for people without causing irreversible damage to the environment may be challenging, but it is not an impossible task as we are currently adapting to change. Climate change could be the biggest driver of innovation since World War II describes Dr Matthew Bell from Ernst and Young. In the case for fossil fuels and natural resource, it is expected that technological innovations will be directed toward creating substitutes as the resources become scarce and their prices rise (Peterson, 2017). The transition from fossil fuels to a low emissions economy is a huge business opportunity (SBC, 2018). Innovations such as photovoltaic tiles can be used, where roofs alone meet over half the world’s energy needs. Renewable energy technologies like wind and solar are getting cheaper and cheaper, and becoming more accessible worldwide. Distributions of renewable energy sources are important to keep prices affordable. Enormous investments and many geothermal and wind technologies have been invented, putting New Zealand well ahead of the pack (Reynolds, 2018). With the fourth largest geothermal power installed, the opportunities for green growth are huge.
Figure 5. Representative geothermal power plants in New Zealand. (New Zealand Geothermal Association, 2016).
11.0. Conclusion
11.1. There is scientific evidence that people are the main driver of climate change. Responding to these challenges requires breaking down traditional silos.
11.2. The environment and the economy are directly related as the environment contributes directly and indirectly to the economy. Achieving sustained economic growth will require absolute decouple of the production of goods and services from their environmental impacts. We will need a reduction in greenhouse gas emissions, even in the face of an expanding global economy. Moving to a sustainable economic growth path will not happen overnight, but it is essential if we are to secure long-term economic growth and make the economy resilient to risks in the future.
11.3. In order to achieve this while keeping the global temperatures below 1.5˚C, we need to make the switch from dirty fossil fuels to 100% clean renewable energy. On top of this, we need to bring our carbon pollution down to net zero by 2050.
11.4. The increasing population growth means that we will have to share resources such as water, energy and food between 1.5 billion more people then today. Reducing the population will be the most sure and effective way to move towards a more sustainable environment. building new forms of cooperation and innovation.
11.5. Innovation is the key to a combat climate change while achieving economic growth. We have the knowledge, we have the resources. We must make the environment and human welfare a priority, we must change our thinking and apply our knowledge in a meaningful way to promote sustainable growth.
12.0. Recommendations
It is recommended that:
12.1. Increase engagement in the use of clean energy like wind, wave, tidal and solar energy.
12.2. Make further direct investments in green technology and innovation.
12.3. Actions towards population stabilization can be taken, all from family planning programs to education.
12.4. Set clear targets to bring our carbon pollution down to net zero by 2050.