The financial crisis and the economic recession have created completely new frame conditions for the fight against climate change. The question is: Will this put a solid brake on governments’ and businesses’ commitment to invest in emission reducing activities? Or will new systems and governance practices emerge, where sustainable development and the environment will become more central?
"Crises create hardships. It is under such circumstances you come up with the real innovative ideas," Muhammad Yunus, Nobel Peace Prize winner and founder of Grameen Bank told DNV Forum.
He is a living proof of exactly that. From very modest beginnings in Bangladesh, he developed the concept of micro-credit. His unconventional business model has not only lifted millions of people out of poverty in Bangladesh and elsewhere. He has also demonstrated how sustainable environmental solutions work in practice for the masses, through what he calls social business.
"The financial crisis demonstrated the deficiencies of the current system. We now have a golden opportunity to change the system, and base it more on sustainable business models," Mr Yunus argues. Perhaps it is the only way for the finance industry to regain public trust; to demonstrate that they create value to society.
Mr Yunus is convinced that there is an enormous willingness and entrepreneurial potential among both individuals and businesses to address the climate challenge. But the politicians must provide the right frameworks.
Tougher emission targets
The UN’s 15th Summit on Climate Change in Copenhagen in December will be crucial in staking out a new course and a new framework after the Kyoto protocol expires in 2012. And Mr Yunus is clear on his expectations: "Quota trading must continue in some form, but the Kyoto protocol has basically failed. The western world, including the US, must lead by example and agree to commit to a level that is sustainable. A 50% reduction of CO2 emissions by 2050 (compared to 1990 level)
is far from enough." Mr Yunus also argues that binding goals must be determined for the short term as well as CO2 taxes. This will automatically bring about technology solutions and innovations.
