Multisectoral engagement
The pandemic showcased how cross-sectoral collaboration is key to solving some global challenges from a socio-economic and developmental perspective. Governmental entities, the private sector, educational and scientific institutions, civil society, and non-governmental organizations must all come together to overcome complex issues. During the Bloomberg New Economy Forum in Beijing, China, Bill Gates stated:
“A global crisis has shocked the world. It is causing a tragic number of deaths, making people afraid to leave home, and leading to economic hardship not seen in many generations. Its effects are rippling across the world. Obviously, I am talking about COVID-19. But in just a few decades, the same description will fit another global crisis: climate change.”
This viewpoint emphasizes the importance of innovative cooperation to develop and deploy clean energy solutions that are needed to prevent another global crisis.
Role of Government
Governments need to lead the way as their commitment to the Paris Agreement indicates how much action is required to reduce emissions by 43% by 2030 and remain within the 1.5°C range of global temperature increase. Next year, at COP 27, which will be held in Sharm El Sheik, Egypt, governments will need to demonstrate the actual implementation and delivery of their earlier commitments. Increased international advocacy is placing pressure on governmental institutions to translate their plans into action.
It is crucial for the government sector to build trust and establish concrete action in mitigating the risks of climate change. Increased investment in this area is fundamental to achieving public support. According to the EU Investment, buildings are considered the single largest consumers of energy. As such, investment in energy efficient solutions on a nation-wide scale could shift the course on achieving a country’s National Determined Contributions in relation to CO2 emission reductions.
National institutions play a key role in setting in place required legislation and policy reform to hold others accountable for using eco-friendly and sustainable solutions. The government also needs to set targets and frameworks for other players to follow specific guidance leading to a collective goal that is aligned to the National Determined Contributions. There is a need for governments to also ensure that they embed adaptation plans into their climate agenda as opposed to just mitigation. Through adaptation, the most vulnerable communities are better protected while also preventing catastrophes and increasing resilience.
The UAE has set definitive action plans in its National Climate Change Plan of the UAE 2017-2050 roadmap, geared to streamline initiatives across the country. Through this plan, climate change-related policies, strategies and planning are embedded in the country’s development and future.
The Masdar Initiative, launched in Abu Dhabi, is considered one of the largest clean energy initiatives the country has committed to. It is a pledge to invest US$ 15 billion in renewable energy, addressing both the country’s global commitment to dealing with climate change but also helps with the country’s plan to diversify its economy. The initiative aims to migrate the energy used for commercial technologies, desalinization, and water usage, to renewable energy sources. Partners of the initiative include:
Role of Private Sector
The private sector continues to play a major role in addressing the negative impacts of climate change. Many companies have already set ambitious targets for transitioning towards Net-Zero. Disclosing their Scope 1, 2, and 3 emissions is considered one of the first steps in having such targets become a reality. Not only do companies need to focus on reducing and eliminating their own emissions, but there is a great opportunity for them to also provide technological solutions that can help others do so as well. Another aspect where the private sector can play a role is through public awareness and leveraging on campaigns and outreach programs.
Mobilizing resources to predict and prevent future disasters is crucial in protecting communities. Efficient communication tools are essential in helping organizations in the recovery process. Cross-sectoral engagement is also important as well to ensuring transparency.
UBS is an example of a private sector entity that places emphasis of spreading climate awareness to harness private capital to close the climate finance gap. Based on the company’s newly published white paper on its Climate Aware framework, UBS identified multiple solutions focused on awareness and education. The following are examples:
- Expand its Climate Aware approach across asset classes within active and passive strategies through ESG reporting and climate risk metrics.
- UBS plans to map climate data to approximately 10,000 issuers and enter partnerships with multilateral development banks to drive scalable climate change strategies and offer the use of green bonds.
UBS #TOGETHERBAND initiatives that aim to publicize each Sustainable Development Goal through digital marketing and a colored wristband for each goal.
Vodafone is another example of a telecom entity leading in its Net-Zero commitment. The telco communicated its goal to reduce its own emission to Net-Zero by 2030 (Scope 1 and 2) and across its entire value chain by 2040 (Scope 3). Vodafone aims to achieve this is through the following:
Building a Circular Economy
Reducing emission throughout its own operations
Reducing Scope 3 emissions
Helping societies decarbonize
This holistic approach will allow Vodafone to achieve its commitment approved by the SBTi in line with the 1.5°C range of global temperature increase. The first step entails eliminating all carbon emission from its own operations based on the energy it purchases. Vodafone will have to eliminate its Scope 3 emissions, which include joint ventures, supply chain purchases, the use of products, and business travel. For the mobile industry, Scope 3 is considered the largest and most complex area to address as it includes greenhouse gas emissions that are not controlled by the company. However, an assessment and analysis of the baseline and understanding where the largest contributor exists provides the requisite guidance to achieve this target.
Vodafone worked with Carbon Trust, an expert partner for businesses and governments to help them decarbonize and accelerate to Net-Zero, so as to prioritize reduction opportunities. Through this assessment and further understanding, Vodafone was able to identify the largest area of emission sources which are joint ventures and purchased goods. As such, the company devised a plan to embed its commitments across its supply chain, providing 20% weighting for environmental and social criteria in its supplier evaluation. It also collaborated closely with its joint venture partners, which include Safaricom and TPG Telecom. Safaricom has committed to becoming a zero carbon-emitting company by 2050 and TPG Telecom committed to purchasing 100% renewable electricity by 2025.
Role of non-governmental organizations (NGO) and multilateral institutions
Such institutions play a central role in addressing climate change as they identify the challenges and raise urgent matters to other sectors. It is important to note that their role is to provide awareness of the full scope from a national, regional, and international level. In addition, they hold other parties accountable for becoming transparent in disclosing their impacts on the environment as they tend to advocate for ethical and inclusive actions.
The need for a strong NGO community in fighting climate change is evident in the MENA region. Governments’ role from a ‘do it all’ approach is shifting and as such, requires partners to help streamline activities. According to the Middle East Institute, governments in the region have listed three ways in which NGOs can play a pivotal role:
Providing Independent science-based policy advice
Building institutional capacity
Facilitating independent and open dialog with civil society
Cross-sector collaboration is crucial to drive climate–related solutions in response to the increasing urgency of environmental risks.
In 2013, the Power Africa Initiative was created with the aim of providing people with access to electricity in sub-Saharan Africa, including in Ethiopia, Ghana, Kenya, Liberia, Nigeria, Tanzania, Uganda and Mozambique. 600 million people, equivalent to approximately 70% of Africa’s population, do not have access to electricity and use unhealthy forms of energy that include coal, oil, gas, industrial agrofuel and biomass. Through this initiative, led by USAID, 170 private sector companies have joined a coalition to provide:
Technical assistance
Provide access to off-grid communities
Risk mitigation
Advisory services
Advocacy of legal, regulatory, and institutional reforms
This initiative set a bold target to bring online 30,000 megawatts of cleaner and more renewable energy, leading to connecting 60 million new homes and businesses by 2030. USAID will not be able to do this on its own, and extensive support from experts, financial institutions, and governmental entities is additionally required. Based on Power Africa’s 2021 annual report, this initiative harnesses the resources of over 170 public and private sector partners. To date, 12,500 megawatts have been added and 27 million new power connections have been made, allowing 127.7 million new beneficiaries to gain access to electricity through Power Africa Initiative. The report also highlights the progress made over the years and showcases the impact of cross-sector partnerships on a large scale as it allowed for scalability, greater access to finance, and the creation of innovative energy solutions.