COP28 and Decisive Climate Action: Why It Matters

Inflation and the Cost-of-Living Crisis: Addressing Climate Change

In recent years, inflation has sparked a cost-of-living crisis that has affected numerous regions worldwide. Unfortunately, some individuals have used this hardship as an opportunity to spread false narratives, claiming that taking action against climate change is unaffordable and contrary to the interests of ordinary people. However, this couldn’t be further from the truth.

Promoting a divisive Green vs Poor narrative is often a tactic employed to mask short-term, profit-driven self-interests. The reality is that the only path towards a stable and economically sustainable future involves ensuring energy security, resilience to disasters, well-funded recovery efforts, and ultimately capping temperature rise at 1.5 degrees centigrade.

Fossil fuels, including coal, oil, and gas, have played a significant role in exacerbating the cost-of-living crisis. These fuels have caused prices to fluctuate wildly, driving up the costs of transportation, food, electricity, and basic household necessities. In certain countries heavily reliant on fossil fuels, household bills increased by as much as $1,000 in 2022 due to rising energy costs.

Economic authorities, such as the US Treasury, the Reserve Bank of India (RBI), and the European Central Bank, predict that consumer costs will continue to rise, and economic growth will slow as climate impacts become more severe. High energy prices not only shrink profit margins for businesses but also hinder economic growth and impede access to energy worldwide. Ultimately, it is the poorest households that bear the brunt of inflation.

These challenges arise as climate disasters worsen in every country. This year is projected to be the hottest in the past 125,000 years. Destructive storms, unpredictable rainfall and floods, heatwaves, and droughts have already caused massive economic damage and affected millions of individuals, jeopardizing their lives and livelihoods.

While it is not possible to turn off the fossil fuel taps overnight, there are numerous untapped opportunities for action. For instance, in 2022, governments spent over $7 trillion in taxpayer money or borrowings on fossil fuel subsidies. These subsidies fail to protect the incomes of the poorest households and divert funds that could have been used to improve healthcare, build renewable energy infrastructure, expand social programs, and alleviate poverty. Phasing out such subsidies responsibly would actually benefit the poorest and improve the economies of countries dependent on them.

This year, the UN Climate Change conducted a Global Stocktaking on climate action, highlighting the slow progress made thus far. However, it also revealed various tools to accelerate climate action while simultaneously strengthening economies. We possess the knowledge and tools necessary to expedite this transition in a fair and just manner, ensuring that no one is left behind.

There is reason for optimism if governments approach this year’s climate change conference, COP28, in Dubai with a spirit of cooperation and a laser-focus on solutions. At COP28, we can collectively agree to triple the world’s renewable energy capacity, double energy efficiency, increase finance to aid countries in adapting to climate impacts, establish a climate loss and damage fund, and fulfill previous commitments regarding financing the transition. This will set the direction for national commitments to deliver tangible results by 2025.

It’s important not to succumb to fearmongering. Instead, we must recognize the urgency of addressing climate change and take decisive action. The personal opinions expressed in this article are those of Simon Stiell, the Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC).

Disclaimer: The views and opinions expressed in this article are solely those of the author.