Projections show that by 2050, the global population will reach 9 billion. As the global population continues to grow, the exploitation and consumption of global resources is close to the limit. Responding to climate change and protecting the natural environment have become an inevitable choice for sustainable development.
The climate agenda and the dual-carbon policy have led to a shift in the pattern of economic growth. What impact will this trend have on global industrial development, rule-setting and standard-setting, and international governance cooperation? Today, at the sub-forum of the 4th Hongqiao International Economic Forum "Green Development under the Background of Climate Change and the New Pattern of Global Economy and Trade", the participants discussed and looked forward to this.
Environmental protection has an economic basis
One view is that trade is incompatible with sustainability. For example, buying domestic products is more conducive to the earth's climate and environment than buying overseas imports.
"These kinds of thinking are not always correct." Pamela Koch-Hamilton, Executive Director of the International Trade Centre, believes that taking the environmental path has an economic basis, while improving competitiveness, it can also enhance resilience to climate change and economic shocks.
From a practical production perspective, the combination of green technology and climate-friendly business models can help reduce production costs and improve production efficiency. By accepting environmental regulations and increasing access to sustainable markets, companies can also qualify for green financing. At the same time, it also opens the door to new export opportunities.
Panelists believe that governments and consumer groups in sustainable value chains can help suppliers make this transition. From a global perspective, the demand for sustainable products is growing. This is no longer a niche market in the larger environment, and as consumer demand for environmentally sustainable cosmetics, videos, apparel and textiles increases, it is inevitable that SME suppliers will be involved in the climate transition.
"In addition to the market-driven mechanism, there is also a need for strong political will." All global trade participants should be proactive in advocating for the integration of sustainable development into trade agreements that have a real impact on trade, production and consumption. Governments must work together at both the national and international levels to help small businesses better transition to green business models in terms of mechanisms, regulations and support.
Jane Bigg, Director-General of the International Development Law Organization, emphasized the importance attached to vulnerable and marginalized groups. "Legal empowerment should be people-centred, encouraging people and communities to participate in our climate action, because they are the first to be hit."
Collaboration is key
The COVID-19 pandemic has made the world aware that global problems clearly require global solutions, involving all players in the production value chain.
"Although the situation varies between countries, one thing we have in common is that we have to cooperate." Wei Shujie, Global Vice President, President and CEO of Michelin Group China, pointed out that all companies need to be more innovative, change their business models, and do important integrations, such as product cycle management, from the first ring to the last ring, each link must become greener. "With regard to carbon neutrality, it is not enough to have an action plan, there must be a scientific method."
Murui Han, CEO of multinational mining company BHP Billiton, described the partnership with Chinese companies, such as supporting the steel industry to develop advanced technologies and pathways to reduce the carbon intensity of traditional steelmaking processes, and signing memorandums of cooperation with China Baowu and Hesteel Group, with a total commitment of US$50 million to jointly explore low-carbon emission reduction technologies.
"Countries and industries that rely on carbon-based resources and have higher carbon emissions can move towards carbon neutrality through international cooperation. Through international cooperation, these countries and industries have access to new low-carbon materials and technologies. Yu Miaojie, secretary of the party committee and vice president of the National Development Research Institute of Peking University, stressed that 21st century industrial policies in line with the concept of carbon neutrality cannot exist in isolation, and that an effective industrial package must take into account factors such as investment, trade, taxation, intellectual property rights, competition and labor market policies, as well as the overall environmental, social and macroeconomic policy framework.
Look for the greatest common divisor
Under the construction of a new development pattern dominated by the domestic large cycle and the mutual promotion of the double cycle, the participating experts believe that from the perspective of economy and trade, there are several points that need to be paid attention to.
For example, instead of targeting export destinations in Europe and the United States, we should see more markets in some developing countries with new industrial countries. For another example, pay attention to the diversification of import scale, not only import high-standard, high-quality final products, but also import high-quality intermediate products. Also, foreign investment is not only going out, but also going in. Different consideration is given to different destination countries, from exports, imports, service trade to investment, to the construction of the "Belt and Road" to regional economic and trade cooperation, and the concept of green is included.
At present, there have been some waves of reversal in globalization, and the new form of global trade is that the global economic and trade pattern is three-legged. The Asia-Pacific economic and trade circle with China as the central node, the North American economic and trade circle with the United States as the central node, and the EU economic and trade circle with Germany as the central node. They stand on three legs and gradually form their own internal value chain. Of course, the three-legged standing does not mean that the three are isolated, and the three are also connected to each other.
"If the global trade pattern is divided into three circles, there are three different solutions from the perspective of green protection and development." Yu said countries should look for a greatest common denominator and a "reconciliation" among three different ideas to promote regional carbon emissions and environmental protection.
Column Editor-in-Chief: Chen Xisha Text Editor: Shu Han Title Image Source: Visual China Picture Editor: Zi Xi
Source: Author: Shu Han