The Trump administration’s antipathy towards climate change is no secret. The President has shared his strong feelings about climate change. Meanwhile, a new report by the U.S. government has suggested that global temperatures will rise by 4°C (7°F) and there’s nothing to be done about it – everyone should carry on as usual.
The aim of this report from the National Highway Traffic Safety (NHTSA) was to justify the President’s plan to freeze fuel efficiency standards after 2020. This document does acknowledge that these large temperature rises could cause extreme heat waves, more floods and droughts. Increasingly acidic oceans could even dissolve coral reefs like the Great Barrier Reef. Many cities around the world could disappear underwater as sea levels rise.
The NHTSA added that avoiding these issues “would require substantial increases in technology innovation and adoption compared to today’s levels and would require the economy and the vehicle fleet to move away from the use of fossil fuels, which is not currently technologically feasible or economically feasible.”
However, the Intergovernmental Panel on Climate Change (IPCC) had very different thoughts to share on this growing issue. The IPCC report explains that this approach to climate change is incredibly flawed and that avoiding global warming will have a negative impact on both businesses and investors.
According to the report, there is simply not enough being done and what is being done is not happening fast enough. The IPCC report points out that some of the right things are in place, such as replacing fossil fuel electricity with renewable energy. It also applauded the replacement of gasoline cars with electric vehicles. However, the report adds that these trends must happen much faster to make a real difference.
The report says limiting global warming to 1.5°C requires “rapid and far-reaching” transitions in land, energy, industry, buildings, transport and cities. There is also a window of opportunity to reverse global warming by moving away from fossil fuels.
Of course, these changes require cash. From large corporations to small businesses hoping to make a difference, cash flow is needed to keep up with new, clean technologies and services. (Many companies are turning to the fast and hassle-free merchant cash advance to boost working capital and keep up with the latest trends.)
Nicolette Barlett, director of climate change at CDP, says, “We are already seeing leading companies, cities, governments and investors making strides towards the low-carbon transition; not just because they identify increased risks from climate change, but because they also see the opportunities of the emerging green economy.”
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using merchant cash advance solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.