A one-day seminar, “Exporting Countries: Risks and Opportunities of the New Global Economy,” was conducted by Softengi on July 5, 2021.
Consulting company Softengi invited participants from Central Asia and Ukraine to discuss new trends in the global economy ahead of the 26th Conference of the Parties to the UN Framework Convention on Climate Change (COP26) in Glasgow.
The seminar was dedicated to the following questions:
– Economy neutral in terms of GHG emissions (net zero): EU, Japan, USA, China, and Korea targets. Paris Agreement, Second Nationally Determined Contribution;
– European Green Deal: General risks for Ukraine and the countries of Central Asia;
– Carbon footprint of products: definition, requirements, calculation methods, examples;
– Criteria for assessing the investment attractiveness of a business in the world of the GHG-neutral economy (EU Taxonomy). Effects. On the example of businesses, for the countries of Central Asia.
The main conclusions of this seminar:
- To limit global temperature, rise to 1.5°C, we need to cut emissions in half by 2030 and reach net-zero by 2050. To date, 59 countries, representing 54% of global GHG emissions, have communicated net-zero emissions targets, including the world’s two largest emitters – the United States and China;
- Decarbonation is becoming a key competitiveness parameter for industries and companies;
- By 2050, major oil and gas groups have pledged to achieve carbon neutrality, zero balance greenhouse gas emissions (Net Zero Emissions). World oil and gas companies (BP, Shell, Norwegian Equinor, French Total, Italian Eni, Spanish Repsol, American ConocoPhillips) are forced reduce GHG emissions and develop appropriate strategies. The same is in current interest of other industries;
- EU is the leader in legislated policies and measures (Green Deal, EU Taxonomy) developing and practical methods implementing for decarbonization targets. Other countries (Japan for example) have announced the support of European legislative initiatives in this sphere;
- Due to globally integrated capital markets and economical supply chains, financial product disclosure obligations, investors and banks from the EU will have impact on international players. This international impact of the Taxonomy will continue to exist despite the lack of intention of third countries to establish their own legislation on environmentally sustainable finance;
- Carbon Footprint is the mark for consumer avoidance of a carbon intensive product, Taxonomy noncompliance is the mark for investor avoidance of a carbon intensive business;
- Ignorance of the approaches and criteria of Taxonomy carries risks of significant losses in the long-term perspective for businesses.
