Important financial actors are responding to the inability of financial markets

Important financial actors are responding to the

This preview shows page 32 - 34 out of 136 pages.

Important financial actors are responding to the inability of financial markets to internalise the long- term cost of carbon lock-in. For exam- 26 GLOBELICS THEMATIC REVIEW
Image of page 32
ple: the European Investment Bank recently re- stricted lending to carbon energy projects; the World Bank cut financing to coal; the UN Green Climate Fund opened in December 2013. Ad- ditionally, the Association of Chartered Certified Accountants began to develop new accountancy guidelines that clarify the cost of carbon activi- ties. A group of 70 global investors managing more than USD 3 trillion in assets launched the first coordinated effort to spur the world’s 45 top oil and gas, coal, and electric power companies to as-sess the financial risks emerging from continued carbon lock-in. 1.4 Low-carbon development and innovation There are broad and narrow views of low-carbon development. In the narrow view, low-carbon de- velopment is the process of transforming the cur- rent fossil fuel-based economic system, particularly the energy system, toward CO 2 neutrality. This view closely resembles notions of low-carbon growth (El- lis et al., 2009; DFID, 2009) and is confined essen- tially to elements of the environmental dimension of sustainability (in particular, greenhouse gas). It is rooted in the goal of sustainable development (Mulugetta & Urban, 2010) while not necessarily addressing the multiple planetary boundaries, and especially their inter-linkages. The broad view differs in two respects. First, in contrast to growth-focused concepts (low-carbon growth and sustainable growth), it explicitly brings together two objectives: climate change mitigation and the sustained development of low- and middle- income countries. It thus includes the social and political dimensions of sustainability. In the words of Urban and Nordensvärd: Low-carbon development is a recently emerged concept that aims to mitigate emissions to avoid dangerous climate change, while at the same time achiev- ing social and economic development in a carbon constrained world (Urban & Nordensvärd, 2013, p. 7). Low-carbon development in its broadest sense involves more than just reduced levels of carbon growth as it aims to promote international de- velopment, particularly inclusive development (see Box 1, next page). The low-carbon devel- opment concept is a projection not only of the co- existence of climate change mitigation and international development. It is also inherent in the notion that synergies between the two can be developed. For example, the push to create green energy systems before brown energy systems take hold in low-income countries may help to cre-ate energy access for the poor. However, as will be shown, there are many questions about syner-gies vs. conflicts between mitigation and various types of development.
Image of page 33
Image of page 34

You've reached the end of your free preview.

Want to read all 136 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors