- By Acclimatise News
- 20th July 2017
By Caroline Fouvet
Keeping cool as the mercury rises is a challenge for billions of people living in hot climates. As temperatures climb into the 40s or even 50s in many regions of the world, like the Middle East and Asia, air conditioning in homes and offices becomes a necessity. However, the increased need for cooling comes at a cost.
Since the Montreal Protocol, it has been acknowledged that cooling devices entail ozone-depleting substances such as chlorofluorocarbons (CFCs). The Protocol’s implementation after 1987 successfully resulted in their progressive phasing out, but the hydrofluorocarbons (HFCs) that replaced them, turned out to be potent greenhouse gases. Since households from both developed and developing countries are buying more and more air conditioning units and other cooling devices, this is problematic. It has been calculated that if all air conditioning equipment entering the world market uses current technology, they will be responsible for 27% of greenhouse gas emissions by 2050.
Fighting warm temperatures can also put countries’ grids under pressure and lead to power outages. In India, where people are familiar with heatwaves, the resulting surge in electricity demand causes major power disruptions and forces the government to impose power cuts on malls and street lights. In 2014, in the state of Uttar Pradesh, the energy demand reached 11,000 megawatts, which is 3,000 megawatts over the grid’s total capacity.
Providing cooling options during hot summer months at the global level is necessary to avoid substantial human and economic losses. Current adaptation methods to a hot climate are threatening to undermine climate policy goals, as they often result in higher greenhouse gas emissions. Adapting to increasingly warm summer months will require improved responses to provide efficient cooling. Green cooling technologies that are less energy intensive are desperately needed.
Cover photo by Sławomir Kowalewski/Pixabay (public domain): Air conditioning units on a building in China.
By Caroline Fouvet
As the oil and gas sector is today the global largest source of methane, a potent greenhouse gas (GHG), it has a crucial role to play in the implementation of the Paris Agreement. Achieving the 1.5°C objective will necessarily involve a drastic reduction in the sector’s current emissions from extraction, transportation and processing activities.
It is in this context that global investors published last month a guide to highlight which actions are required from the oil and gas sector to address climate change risks. Investor Expectations for Oil and Gas Companies: Transition to a Lower Carbon Future mainly focuses on how companies’ business strategies consider climate change-induced risks and enable their transition to a sustainable low carbon energy system.
The five areas that are reviewed, namely governance, strategy, implementation, transparency and disclosure together with public policy, bring out investors’ main concerns. Does management ensure adequate oversight of climate-related risks? Does the company engage with public policy makers to support development of cost-effective policy measures to mitigate climate-related risks and low carbon investments?
It is on these issues that the Institutional Investors Group on Climate Change (IIGCC) aims to shed light and intends to help the oil and gas sector adapt its business model to climate change and comply with international regulations. Asset owners and fund managers are concerned with the sector’s consideration of global warming’s impact and policy rules as trillion of dollars are at stake. Investors hence want the guarantee that companies are well prepared both to tackle the effects of climate change as well as to abide by the international requirements set in this respect.
The IIGCC’s guide reflects the international community’s endeavours to make of the Paris Agreement’s provisions a reality at the global level. It also highlights how the private sector has as a vital role to play as policy makers, and that large-scale actions are to be expected from businesses too.
Download the report by clicking here.
Cover photo by WerbeFabrik/Pixabay (Public Domain)