ON day three of COP26 in Glasgow, the impact of finance and business is under the spotlight.
Solmaz Rohani, expert in environmental accounting at the University of Salford Business School, said: “Investment in renewables and stopping the consumption of coal and other fossil fuels are strategic approaches that can help world leaders pave the way towards achieving global net zero by mid-century and keep 1.5 degrees within reach, one of the COP26 goals.
“However, to make it happen depends on how parties of the Paris Agreement will incorporate efficiency, economy and effectiveness in their cost-benefit analysis when it comes to taking strategic decisions and turn it into action.
“Protecting and restoring ecosystems, from one side, and securing global net zero by mid-century will not happen if parties, governmental and non-governmental bodies, industries, public and private sectors will not work collectively and collaboratively at local, national and global levels.
“Finance is at the core of almost all actions to be taken in this collective mission of climate change’ for humankind. This collaboration will not only require allocation of financial resource but more importantly, ‘mobilising finance’ is of a matter of importance which is not exempt from cost-benefit analysis and how parties take factors of efficiency, economy, and effectiveness into account.
“It will be interesting to see how talks at COP26 will turn into action. This depends on how and how far parties will adopt new way of thinking, acting and strategising in their cost-benefit analysis.”