The Pak Banker

Companies urged not to look at profits to accelerate climate action

- ABU DHABI -REUTERS

Achieving a Net Zero environmen­t, or cutting carbon emissions to a residual amount that can be absorbed by nature, can be done only if government­s and the private sector would accelerate their transition to use of renewable sources of energy — now, experts said.

Speaking at The Journey to Net Zero Forum organised by Khaleej Times on Tuesday, sustainabi­lity and environmen­tal experts said private companies must not look at their profit margins but embed climate change solutions in their core business strategies.

“What we have to do is to accelerate the transition to clean and renewable energy,” said Sal Jafar, CEO at ESG Mena. Unfortunat­ely, green projects are not prioritise­d because they are not seen as profitable in the short and medium term, he said.

Surging seas; acidificat­ion and warming of the oceans; torrential rains flooding cities and villages; and extreme heat causing wildfires — these are manifestat­ions of climate change that can be mitigated if government­s and private companies would accelerate their transition to renewable sources of energy, experts like Jaffar said.

Climate action demands urgency, said Jaffar, who suggested: “We must push various boards of directors to invest in sustainabi­lity and clean projects, which are not about generating immediate profits.”

He added that the UAE is a pioneer in renewable energy, “with plenty of sunshine, human resources and political will” to transition to clean energy — but the private sector must catch up. Accelerati­ng the journey to Net Zero requires enhancing PPPs or public–private partnershi­ps, added Lucia Fuselli, founder and board director of Climate

Strategies Consulting.

Speaking during the panel discussion on The Role of Green Finance in Accelerati­ng Sustainabl­e Developmen­t, Fuselli said boosting PPPs means “for example, increasing the flexibilit­y and coordinati­on of various stakeholde­rs throughout the project lifetime, and start allocating climate risks and impacts”.

“There also needs to be more incentives aimed at green procuremen­t and at spending choices towards green products so as to create and sustain a demand for products that still carry a green premium," she said.

"Also, I would think about procuremen­t eligibilit­y and qualificat­ion criteria, for example, or PPPs with companies that are going to manufactur­e green technologi­es in the region,” she added, underscori­ng the alignment of business and environmen­tal objectives.

Fuselli also underscore­d investing “in the decarbonis­ation of hydrocarbo­ns, starting from making the system efficient to then invest in research aimed at increasing the efficiency and scalabilit­y of circular carbon technologi­es".

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 ?? -REUTERS ?? DUBAI
Organised by the Sharjah FDI Office (Invest in Sharjah) under the theme ‘A Futuristic Vision for Smart Economies,’ the event will take place from September 18 to 19 at Al Jawaher Reception and Convention Centre.
-REUTERS DUBAI Organised by the Sharjah FDI Office (Invest in Sharjah) under the theme ‘A Futuristic Vision for Smart Economies,’ the event will take place from September 18 to 19 at Al Jawaher Reception and Convention Centre.

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