FINANCE
technologies – a reality fast capturing the attention of governments around the world .
Unfortunately , says Dr Mahadeo , the negative investment outlook because of the economic uncertainty makes a major energy transition unlikely in the short term .
Reflecting on the objectives of the CISF , Dr Mahadeo points out the need to find a way to roll out renewable energy equitably around the world .
“ This is where sustainable finance comes in – to ensure the path to net zero carbon emissions is done in a way that is fair for all people .”
Consumer hurdles
Consumer researcher Jason Sit says that , for many people , sustainability concerns are put onto the backburner as they focus on keeping a roof over their head , food on the table , and travelling to and from work and school .
While some with sufficient income will continue to buy products that support the environment , at a price , the reality is that shopping to support ideals such as environmental sustainability become optional because people just don ’ t have a choice .
There was increased spending on hobbies and health , for example . And many consumers sought out companies or brands that better reflected their personal values . There was an uptick in spending on products with ‘ green ’ credentials .
But unlike the COVID-19 experiences , Dr Sit now expects a largely negative consumer response to the economic crisis , with reduced spending in order to afford the essentials .
“ Also , people will repair things , and think twice about buying new . Of course , there are business opportunities in all of this … repair centres , mending services , groupbuying schemes .”
And then there is the ‘ shrinkflation ’ response by manufacturers and supermarkets : prices stay the same … but the toilet rolls have fewer sheets , chocolate bars are smaller and there ’ s less cereal in the box .
What it all shows , says Professor Liu , is that economics , global and local , is in a constant state of flux , pummelled by imbalances between supply and demand . And within this financial maelstrom , ways still have to be found to progress the United Nation ’ s SDGs .
This is the mountain the CISF has to climb . The natural systems that support the fundamental ingredients for healthy life – clean air , clean water , sufficient nutrition – continue to erode . Reimagining the role of global finance in the greater environmental / economics matrix has never been more important .
Energy markets and oil , in particular , react to geopolitical risk at the best of times . And given Russia ’ s huge importance as an oil exporter , energy prices have been particularly affected by the war between Russia and Ukraine .
– Dr Scott Mahadeo
ISSUE 04 / 2022 45