The impacts on global economic of climate change are terrified. Countries whose economy heavily rely on agricultural production will be hit badly with the possibly of reduction in crop yields. In some African countries, for example, yields could decline by as much as 50% by 2020. As a result, the world may see price hike of food supply. The collateral effect will be political instability in third world countries where people suffer from expensive food end up in riots. Therefore climate change will precipitate what already weaken economy of these countries to the worst.
Climate change would also lead to increase water stress. Contaminated water resulted from flood not only affecting people daily life but also become the medium of pandemic diseases. The direct consequence will be increase cost of social welfare and public insurance. Not to mention that the economic losses due to damage on ecosystems, infrastructures, property and threat to life as a result of coastal flooding.
In order to mitigate climate change, we must reduce the emission of CO2 and this involves the choices of technology. Incentives shall be given by the authorities to the investors. Therefore, we can foresee that in the future more and more clean and green technology compliance products will be developed and promoted to the market. Company who do not adapt to this change of product roadmap will be outperformed and marginalized in the market.
CO2 emission quota will be tradeoff internationally. However, this measure will not abate climate change as countries that in need of bigger CO2 emission quota will trade with countries with less emission and continue to consume fossil fuel. Ethically, this is not a good practice as only rich countries consume energy as long as they pay to the poor. The effort to develop green technology will be unmotivated as well.
As for Malaysia, our palm oil export will be hit as higher environmental protection standards imposed by western countries like RSPO-Route Table on Sustainable Palm Oil. Unless Malaysia achieves the certificate or our palm oil will be boycott by the western buyers. Not only palm oil but other sectors like electronic and semiconductor manufacturing may face similar export requirements.
On the positive side, Malaysia economy could be stirred by producing plants that can be used to produce bio fuel in large scale. Private sector may invest in renewable energy development to provide clean and green technology compliance products to the market.
In retrospect, nothing has ever brought all human so close and so imperative together to combat a common problem than climate change. The United State, as the biggest CO2 emitter can no longer antagonistic in signing KYOTO protocol and should join the body soonest possible echoing Obama’s administration green policy.
Save the world by combating climate change is not something insurmountable challenge. However, world leaders and policy makers must scrupulous toward the steps and measures.
Developing countries must work hand in hand with developed countries without any prejudice and the later shall assist developing countries in term of monetary or green technology transfers.
In recent G8 summit held in Italy, the eight richest nations in the world first time have reached to a consensus to reduce worldwide emission by 50% in year 2050. Unfortunately, no concrete path has been outlined to address how this goal is to be achieved. BRIC-Brasil, Russia, India and China collaboration and cooperation must not only be confined in economic scale but also addressing climate change. Only an UNITED and UNDIVIDED world’s effort can possibly achieve victory in this war.
This is the war that will decide the destiny of our future generation.
