Life’s conditions change so fast that our adaptation to a climate change gets new pace as well. Even though, we are heavily suffering from climate anomalies, for some reason our psychological adaptation works perfectly. Actual and economical activities changing steps that would make the difference on this critical agenda are still lacking courage for implementation. Maybe we genuinely don’t care about it?
First winter and increased energy scare in the autumn of 2021, made fossil fuel prices skyrocket. Coal became a goal and all major coal consuming countries increased consumption of this close climate friend. In Germany a coal generated electricity increased by 38% in the first half of 2021, that will increase the share of coal generated electricity to one third in total. US plans to increase coal consumption this year by 14.50%. China and India is ordering to expand coal mining capacity to match increasing energy demand.
Seems like major economies need such a small amount of economical pressure and all natural disasters and pledges to make the climate situation different fade into oblivion. This game has been played for decades, however this year, with floods in Germany and drought in western US, the contrast is a bit more visible.
The Italy’s prime minister Mario Draghi at G20 meeting in Rome 2021, once more reached out to a collective responsibility with words: “Multilateralism is the best answer to the problems we face today. In many ways it is the only possible answer”. It’s extremely hard to make a collective pledge on things that are directly expand and benefiting let’s say trade between several countries. That’s why it’s really even difficult to imagine voluntary global accord that will limit our consumption and make temporary financial sacrifices in the name of nature.
Most probable scenario of new global climate agreement will be a close version to Paris climate accord of 2015. Where precise collective goals are determined and big number of countries agree on them. However, a lot of room are left for an individual implementation from perspectives of timing, magnitude of works, development and restrictions. Even with an agreement in hands, major world economies and polluters very often adopts the behavior closer to current economic conditions, than state of climate. Some countries who voluntary declared intentions to adopt carbon dioxide neutral economies have deadlines ranging from 30 to 70 years. It’s really alarming to hear this, specially when scientists are convinced that we don’t have so much time for this changes anymore.
Real world of money
The way governments behave is closely resembled by financial institutions. The trending wave of ESG investing and broader ESG corporate practices becomes not only exceptionally popular but almost vital for businesses to declare. Where new and visible need of adaptation for corporations arise, the invention of their own, ESG ranking metrics, becomes vary handy. The complexity of ESG ratings makes it possible to acclaim high ranking for all sorts polluters, including fossil fuels producers, refineries or heavy users. Magic comes with a sufficient number of criteria and financial or political influence. Online sale giant Amazon shares the same medium ESG risk rate as Total Energies, very big oil and gas company.
“ESG marketing strategy” made some financing and capital distributions routes shifts at the core of financial institutions. However, bigger profit margins is always a leading strategy for the business. In 2021 investors embraced numerous fresh bond issues from fossil fuel companies driving some older bond yields to go down significantly. Saudi Aramco 10 year, 3.5% coupon bond’s yields keeps staying at low 2.44% spot. The mark that is relatively close on same duration 1.5% coupon Amazon bonds. Where totally different 2 big names from climate change perspective, can easily obtain very close financing opportunities in the markets.
Aramco USD 3.5%, 2029 bonds. Source: www.reuters.com
Amazon USD 1.5%, 2030 bonds. Source: www.reuters.com
Even with the publicly harsh push on ESG, financial world creates relatively good conditions for all cash generating companies. Where ecology or climate goals are ignored. The spike on Aramco bonds in the beginning of 2020 year was related with oil price sharp contraction though currently do not reflect any future long lasting climate change approach.
Another blow of a financial world, in the area of it’s willingness and capabilities to make changes on behalf of nature call, is ability for oil and gas giants, such as Total, still in 2021, to issue new long term bonds with close to record lows coupon payments: EUR 1.5 billion 1.625% 7 year and EUR 1.5 billion 2.125% 10 year. That just emphasizes, that ESG strategies are perfectly working for marketing but not for real businesses change towards environment.
Me me me
It’s already obvious for everyone that reducing the usage of plastic or waste sorting, simply won’t make a difference in this global change. The way of transformation should be paved with drastic measures or we should simply leave it for a future “hunger games” survival.
Are you ready to step up? Are you ready to get rid of the car and use just public transport or bicycle? Are you ready to stop overwhelmingly consume, acquire extra house or travel? Are you ready to earn and spend less? Are you ready to stop economical activities expansion and embrace GDP decrease?
It’s absolutely fine with presidents and major politicians, industrial billionaires and most important CEOs of international conglomerates to leave a climate change topic still in a level of words and discussions. For global political, economical and financial decision makers are too complicated to fulfill their duty and do tangible steps. Even knowing that today’s relatively smaller concessions might be the only way to prevent future severe conditions. Everything is left in a pretty form of sound declarations. Seems like they are perfectly fulfilling their self-realization with the sense of power and have no regrets about the future possible madness.
This long lasting situation puts me into contradicting situation. From one end I feel anger and frustration that nothing is being done. On the other hand, I feel tired and hopeless from the psychological responsibility left on my shoulder, constantly to control governing representatives and their inabilities to make climate change agenda number one. I am already fully loaded with my individual struggles to live a complicated live in confusing times.
I cannot reject the thought, that if individuals with the power to act on catastrophic climate transformation for humanity are irresponsibly behaving for years, maybe this topic is out of even possible control for all human race. Benefits for climate and costs for economy and people might be not only too much deviating but maybe not correlating at all. I feel that sometimes I have to leave some room and for myself by letting go hardly manageable problems and leaving my own responsibilities less crammed. I believe in personal legitimacy for the sake of my psyche time to time leave a climate change topic at the stage it is. And accept the life and environment in the state it is now.
Nor we, or governing world elite will escape consequences of global worming. Of course, most of them will be on the shoulders of regular people. However, it’s a case practically unchangeable as the climate change it self.