Global Environmental Issues

What is Climate Change?

Today, Earth is the hottest it has been in 1400 years. Climate change caused by global warming is having an increasing impact on ecosystems, water resources, crops, and other aspects of human life. The main cause of climate change is greenhouse gases (GHG). CO₂ (carbon dioxide), which accounts for 70-80% of total GHG, has the greatest impact on global warming. A surge in CO₂ levels has accelerated global warming in recent years.

Natural Disasters and the Economic Losses They Cause Are Increasing

The consequences of climate change are evident in various abnormal weather patterns worldwide, leading to an increase in natural disasters such as heavy rainfall, floods, heatwaves, and droughts. As a result, economic losses due to natural disasters are escalating annually. Beside posing risks to living environments, climate change adversely affects economies.

A line graph depicting the number of natural disasters and their economic losses. The incidence of disasters such as droughts, record temperatures, floods, landslides, storms, and wildfires continued to rise to 3,500 by 2009, with economic losses surpassing $1.2 trillion in 2019. Source: WMO, 2021

Addressing Global Warming is Now the World's Shared Goal.

As of 2017, the global average temperature had risen by approximately 1ºC on a mid-18th century baseline, with projections indicating a potential increase to 1.5ºC between 2030 and 2052 if the current (2017) trajectory of GHG emissions persists.

To avert this scenario, the international community ratified the Paris Agreement in 2016, aiming to limit the global temperature rise to around 1.5ºC by the end of the 21st century from pre-industrial levels.

A line graph showing the rise in average temperatures from 1850 to 2020. Simulations based solely on natural phenomena like sunshine and volcanoes show no change in average temperatures. However, simulations and observational data considering both human and natural factors indicate a steady rise in average temperatures since around 1950, nearing the 1.5°C limit agreed upon in the Paris Agreement. Source: IPCC, 2021

The Fate of the Earth by 2030

The world’s carbon budget, meaning the maximum amount of CO₂ emissions that could be generated without exceeding the 1.5ºC global limit set at the Paris Agreement, is approximately 500 gigatons. Without additional measures, the current rate of reduction in CO₂ emissions will deplete this budget by 2030, necessitating urgent action.

A diagram illustrating the remaining CO2 emissions needed to limit the rise in average temperatures to 1.5°C. Over half of the carbon budget of 500 gigatons has been emitted since the Industrial Revolution up to 2017. Source: IPCC, 2018

The Global Pursuit of Carbon Neutrality

To address the critical situation regarding climate change, countries and regions worldwide are proactively declaring their commitment to carbon neutrality. Over 150 countries and regions have declared targets to achieve carbon neutrality by 2050, 2060, or 2070. If all these commitments are fulfilled, global CO₂ emissions could be reduced by approximately 88%.

A world map color-coded to represent countries and regions that have pledged decarbonization targets for 2050, 2060, and 2070. Regions committed to decarbonization by 2050 are shaded light green, accounting for over half of the world's regions. Additionally, several countries, including Russia, shaded in blue, have committed to decarbonization by 2060. Furthermore, countries shaded in green have pledged to achieve decarbonization by 2070, totaling many regions worldwide. Source: Ministry of Economy, Trade and Industry, Energy White Paper 2022

Towards a World Where CO₂ Emissions Reduction Has Economic Value

The idea that countries and corporations emitting GHG should bear responsibility for doing so is gaining mainstream acceptance. Initiatives such as carbon taxes impose levies on fossil fuels according to CO₂ emissions, resulting in higher product prices for entities heavily reliant on fossil fuels in their manufacturing processes. Additionally, mechanisms such as emissions trading systems allow countries and corporations to trade emissions allowances, providing a monetary incentive for emissions reduction efforts.

These systematized approaches are expected to drive transformative actions by companies towards CO₂ reduction and accelerate the transition towards carbon neutrality in society as a whole.