How to transition to net zero: Oxford University balances macroeconomics and climate change
Climate change is not only an environmental issue but an economic one. The Oxford University conference stressed that rising temperatures are causing financial risk from reduced productivity.
The conference took place on 14 November 2024, highlighting the effects of climate change and how rising temperatures have impacted productivity and, in turn, the economy. It specifically examined the social cost of carbon (SCC), which translates the effects of climate change into an economic perspective.
The conference emphasised that the rising global energy demand has led to an increased use of fossil fuels and higher greenhouse gas emissions. This is, in turn, accelerating climate change and further contributing to rising temperatures. The main organiser, Andrea Chiavari, says that after global temperatures increased by 1.3 degrees Celsius, the Mediterranean region faced ‘significant challenges regarding agricultural systems in 2024’.
Chiavari used Italy as an example to demonstrate the link between temperature increases and productivity loss. He explained that when temperatures reach above 40 degrees Celsius, productivity goes down by 30%. The findings came as world leaders gathered at COP29 in Baku to address climate funding and to negotiate emissions reductions.
COP29: Global temperatures need to decrease
Climate experts argue that reducing global temperatures is key to protecting both the environment and the economy. According to the Cop 29 United Nations climate change conference in Baku, ‘emissions need to be reduced by 43 per cent by 2030 [to] reach net zero by 2050’.
As this race to zero has begun, countries, cities and organisations are committing to attaining net zero emissions. In a UN report, Selwyn Hart, a Special Adviser to the UN Secretary-General on climate action, states: “A revolution in the transition to renewable energy is already underway. It cannot be stopped”.
Cop 29, which ends Friday 22nd November, has given the public a clearer understanding of what actions governments are taking to battle climate change.
The Oxford University economics conference was followed by a panel discussing Sustaining Sustainability: Balancing Economic Growth and Climate Resilience. It was advertised to bring “diverse perspectives into the ways we can achieve the dual goals of financial growth and climate action”.
Guest speaker Dr Nicola Ranger emphasised that “We need the financial support in the transition to renewable resources” and that in order to achieve this “We need policies to create the right frameworks”. These issues are currently dealt with at COP29 as the future of the economy and the future of our planet depend on the actions of officials.
Speakers at the conference highlighted that rising temperatures are increasing the need for global action. Climate change poses a significant threat to society, both environmentally and economically. Lead speaker Chiavari said, “This is a global solution…no country can do this alone”.