🔎 Market Mysteries: How doomed are we?

We're as doomed as we let ourselves be. Last week, the global authority on climate change issued another dire warning about the consequences of inaction. This is no longer a far-off problem. Many of us are fortunate enough only to read about the ongoing environmental devastation brought on by climate change, but it will soon be on our doorsteps. Scientists offer hope and straightforward policy suggestions, but action needs to be swift and wide-reaching.

This is serious information that isn't getting the appropriate coverage. So we've asked the experts at Citizen Yard to help us understand the gravity of the IPCC report and how we can hold corporations accountable to affect change.

Scientists offered a stark message to the world this past week: urgently transform your approach to emissions, or face dire consequences.

The Intergovernmental Panel on Climate Change (IPCC) delivered the final part of its Sixth Assessment Report (AR6) Synthesis Report, a crucial document that deepens our understanding of climate change. The report drove home the fact that human activity — chiefly the burning of fossil fuels — is the leading cause of climate change.

The evidence for human-induced climate change is overwhelming, with its impacts already impacting more than 3 billion people living in more vulnerable regions. The IPCC warns that we're on a trajectory toward catastrophic warming. It underscores the urgent need for immediate, sweeping action to reduce greenhouse gas emissions and cap global warming at 1.5°C above pre-industrial levels if we are to avoid the worst effects of climate change.

Since the pre-industrial era (1850-1900), the average global temperature has already risen by approximately 1.1°C. Despite over 30 years of warnings from the IPCC, who publicized their first report in 1990, we have failed to halt a 200-year trend of skyrocketing greenhouse gas emissions. Unless we take significant steps to reduce emissions, we will surpass the 1.5°C target set by the Paris Agreement as early as 2040.

If we continue on our current trajectory, the far-reaching consequences on human and natural systems will result in mal effects such as more frequent and severe heatwaves, extreme precipitation events, intense droughts, and rising sea levels. The most vulnerable communities and ecosystems will bear the brunt of these impacts, resulting in food and water scarcity, human displacement, and mass extinction.

According to the report, greenhouse gas emissions, deforestation, and land-use changes are attributed as the primary factors responsible for the Earth's changing climate.

While candid in detailing a grim future, scientists are just as eager to paint one of hope. The report goes on to outline various existing solutions to reduce greenhouse gas emissions, which are not only easily accessible but also financially practical. Furthermore, many of the solutions proposed by the IPCC are even more cost-effective than their carbon-emitting alternatives.

Before we get into the report's highlights, let's look at what and who the IPCC is.

The Intergovernmental Panel on Climate Change (IPCC) is an international body established in 1988 by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) to evaluate, standardize and consolidate scientific research on climate change. Its primary goal is to provide policymakers with reliable information to develop evidence-based policies for addressing climate change.

This latest summary rounds out the IPCC's Sixth Assessment Report, or AR6. The AR6 culminates over six years of work by thousands of climate scientists across 195 member governments who dug deep into the most recently published and peer-reviewed global warming research. 

To date, six assessment reports have been published:

• AR1 (1990): Helped set the stage for the United Nations Framework Convention on Climate Change (UNFCCC), adopted in 1992.

• AR2 (1995): Provided evidence of a discernible human influence on the global climate and contributed to the negotiations of the Kyoto Protocol in 1997.

• AR3 (2001): Introduced the concept of "climate sensitivity" and emphasized the need for substantial emission reductions.

• AR4 (2007): Strengthened the evidence for human-caused climate change, leading to the IPCC sharing the 2007 Nobel Peace Prize with Al Gore.

• AR5 (2013-2014): Consolidated the scientific consensus on climate change, informed the Paris Agreement in 2015, and introduced the "carbon budget" concept.

• AR6 (2021-2022): Emphasized the urgency of immediate and deep emission reductions to avoid the worst impacts of climate change.

What makes the AR6 so important is that the next IPCC report isn't due to be published until 2030, making this report effectively the scientific gold standard for advice to governments in what's shaping out to be a crucial decade to mitigate adverse climate effects.

While the latest report of the IPCC gears toward governments and policymakers, it directly affects and prophesies the role of organizations in solving the climate crisis. And if there's only one clear message for companies, it's this:

Develop for the future, not the past.

If burning coal and fossil fuels was the hallmark of the 19th and 20th centuries, let the 21st century become one led by innovation in energy production and climate solutions.

While the report doesn't explicitly say so, it strongly hints that coal, oil, and gas have no future in a sustainable, livable planet.

The report emphasizes that renewable energy sources, like wind and solar, are now more affordable and cost-effective than continuing to rely on fossil fuels.

Cost aside, scientists and economists concur that countries continuing to depend on fossil fuels may face geopolitical disadvantages due to their reliance on supplier nations. This situation has been evident in Europe over the past year, as seen during the conflict between Ukraine and Russia.

The IPCC asserts that there's no justification for continuing to delay the widespread adoption of renewable energies. The advantages of transitioning to renewables are numerous, including economic viability, energy security, public health improvements through reduced air and water pollution, enhanced environmental quality, job creation, and more.

Much of our heavy reliance on fossil fuels is due to their role in fueling our various transportation modes. Scientists urge a critical transformation in the transportation sector to break free from this reliance, encompassing personal, commuter, public, and international travel, as well as business-related transportation.

Accelerating this process requires a transition to cleaner fuels, such as electricity from renewable sources, hydrogen, and biofuels. The report also highlights the importance of vehicle electrification, with electric vehicles (EVs) playing a significant role in reducing transportation-related emissions.

Another vital aspect stressed by the AR6 is the promotion of public transportation systems and active mobility options like buses, trams, trains, walking, and cycling. By embracing integrated urban planning and infrastructure development centered on sustainable transportation, we can reduce emissions, ease traffic congestion, and combat air pollution.

Lastly, the AR6 recognizes the importance of behavioral changes in reducing transportation emissions. Wide-scale adoption of practices like ride-sharing, teleworking, and efficient logistics can lead to a more sustainable and climate-resilient transportation system. Ultimately, the AR6 advocates for a comprehensive approach to transportation transformation, one that embraces technological advancements, infrastructure development, and behavioral changes.

If we're to successfully reshape the transportation sector, we must also reimagine urban planning, infrastructure, and sustainable development. Central to this endeavor is transitioning from fossil fuel-based energy infrastructure to low-carbon and renewable energy grids. Imagine cities interwoven by sustainable transportation networks, where public transit, cycling paths, and walking trails seamlessly connect and intertwine with greenspaces punctuated by electric vehicle charging stations.

As we unlock the potential of urban landscapes, the importance of energy-efficient buildings and climate-resilient infrastructure will become increasingly paramount. Green building technologies, cutting-edge insulation, and ventilation systems will form the backbone of our cities' structures. Urban designs will skillfully integrate green spaces, sustainable water management, and climate adaptation measures, creating sanctuaries for both people and nature.

Moreover, the AR6 underscores the vital need to develop infrastructure capable of withstanding the relentless impacts of climate change, such as rising sea levels, extreme weather events, and flooding.

A lot, actually. Although the AR6 primarily targets policymakers, it explicitly emphasizes that a crucial solution to the climate crisis lies in cooperation. This cooperation encompasses collaboration among nations, regions, and across socioeconomic and geopolitical boundaries. As drivers of industry, companies have a significant role to play.

Pulling directly from the Mitigation and Adaptation part of the report, it states:

Technology, infrastructure, finance, climate services, socio-cultural and behavior changes — these are all opportunities for companies to contribute meaningfully to addressing the climate crisis.

While the solutions business can provide are virtually endless, the report does highlight three critical enablers to accelerate the mainstream adoption of decarbonization efforts — finance, technology, and international cooperation.

In a nutshell, the IPCC maintains that there is ample global capital to bridge these investment gaps. It proposes that we need to increase climate-focused financing by 3-6 times our current efforts. This funding would then be channeled into accelerating innovative technologies that not only reduce emissions growth but also bring about social and environmental benefits.

As we journey together toward a brighter, more sustainable future, international collaboration on innovation systems and technology development becomes all the more essential. Strengthened by capacity building, sharing knowledge, and technical and financial support, this united effort can accelerate the global spread of climate-friendly technologies, practices, and policies, aligning them for the betterment of all.

Keep working for a better future,

IPCC AR6 SYR Longer Report

IPCC AR6 SYR Summary for Policymakers

Press Conference

Press Conference Slides