Pathways to climate resilience

In her inaugural lecture, Professor Sandra Phlippen addresses the profound challenges posed by climate change and outlines five pathways to achieving climate resilience. These pathways are diverse, ranging from global initiatives to local strategies, encompassing physical infrastructure changes and the redirection of financial resources.

Phlippen first emphasizes the critical need for translating scientific knowledge into practical solutions that reduce greenhouse gas emissions by households and firms. She aims to bridge the gap between scientific research and its application in the banking sector and public policy. Furthermore, she highlights her ongoing research on financial resilience, including studies on occupational transfers and the effects of financial coaching.

The lecture then delves into the economic impacts of climate change, citing projections that maintaining current economic practices could reduce global GDP by 20% by 2100. In contrast, transitioning to a climate-resilient economy would cost about 1.5% of global GDP, underscoring the economic rationale for action. Despite these figures, two significant barriers hinder progress: the "tragedy of the horizon," where current generations are reluctant to make sacrifices for future benefits, and the "tragedy of the commons," where individual efforts to reduce emissions seem insignificant without collective action.

Phlippen advocates for a global carbon tax as an ultimate pathway, arguing that, eventually, the self-interest of nations will align with the global need to mitigate climate change. However, she acknowledges that this might come too late for many. She stresses the importance of annual awareness campaigns to highlight the costs of inaction.

The pathways to climate resilience also include adapting physical infrastructure and urban planning to mitigate the effects of climate change. This involves enhancing energy efficiency, electrifying processes, integrating renewable energy sources, and capturing residual carbon emissions. Phlippen underscores the importance of local adaptation measures, such as improving the energy efficiency of homes and making them resilient to extreme weather conditions.

Finally, she discusses the crucial role of global finance in achieving climate resilience by redirecting capital towards sustainable investments. She critiques the current state of ESG (Environmental, Social, and Governance) investments, noting that most focus on minimizing the impact of climate policies on investments rather than on reducing the environmental impact of the investments themselves.

In conclusion, Phlippen calls for a concerted effort to align global capital flows with climate goals and emphasizes the need for policies that promote financial resilience in the face of climate-related risks.

Design and layout: LINE UP boek en media bv | Riëtte van Zwol, Mirjam Kroondijk
Cover illustration: Hugo Dur
Illustrations: Hugo Dur

Published by University of Groningen Press
Broerstraat 4
9712 CP Groningen
https://ugp.rug.nl/

Live registration of the inaugural lecture