Row rect Shape Decorative svg added to bottom WEF22 discussion - How to implement sustainable solutions amidst hurdles along the way Absa | Corporate and Investment Banking > Insights and Events > WEF22 discussion – How to implement sustainable solutions amidst hurdles along the way SHARE A report by ‘The Money Show’ A few months after world leaders pledged their commitment to reaching net-zero carbon emissions, a few hurdles formed along the way. With each country approaching the mission in their way, results of this global effort have differed across the world. At the 2022 World Economic Forum, panel discussions were held on the topic of sustainable energy, carbon reduction and how corporations could implement this into their policies. The various panels featured groups of leaders from within the climate change and renewable energy sectors, giving insight and context around their respective countries The recent rise in oil prices due to sanctions against Russia also adds to the challenge of transitioning to greener energy, since many countries are very reliant on fossil fuel energy and cannot afford to switch energy sources just yet. Although European countries have the necessary budget to move to alternative power sources, lower-income countries in Africa won’t necessarily have the budget to do so. Johan Habeck, Vice Chancellor of Germany and Federal Minister for Economic Affairs and Climate Action echoes the notion that the energy transition is not financially viable for every country right now and suggests that a new solution needs to be found in order for the energy transition to progress without adding to Russia’s bank account. There are alternative greener energy sources throughout Europe that are being used by major companies, according to the Catherine Macgregor, CEO of French energy company Engie. Macgregor also explains that her company prefers gas suppliers with lower carbon emissions. “The Norwegians, for example, have the lowest amount of CO2 emitting methane from all [of our suppliers],” she says. Macgregor is also engaging with energy providers from the USA with the concept of responsibly sourced gas, which allows those companies to make legitimate commitments to lowering methane emissions when producing and transporting gas. For more coverage of key conversations during #WEF22, please keep an eye on our LinkedIn and Twitter pages. Disclaimer: The views and opinions expressed in this article are not the views of Absa. https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles RISK MANAGEMENT How Finance Can Help Build More Integrated African Supply Chains If one were to speak to African suppliers who trade across borders, many would say that doing business within the continent can feel riskier than exporting beyond it. Especially for small and medium-sized enterprises (SMEs), information on counterparties is not always easy to obtain, regional currencies can be volatile and difficult to hedge, forward markets offer little depth, and access to affordable finance is often limited at precisely the moment it is needed most. Read more RISK MANAGEMENT What Bidvest’s Eurobond Tells Us About the Maturation of SA’s Debt Capital Market The international high-yield bond market functions as one of the largest and most technically evolved sources of corporate funding in the global financial system. Read more RISK MANAGEMENT Africa’s Capital Markets Are Moving Again. Here’s How. Kenyan beverages giant East African Breweries recently refinanced an existing KES 11 billion corporate bond through a medium-term note priced at 11.8%, marking the first issuance under its newly approved KES 20 billion programme. Read more
