Climate Change: A Growing Divide Between Rich and Poor Nations
The world is at a tipping point when it comes to climate change, and the divide between rich and poor nations is only getting wider. Sanda Ojiambo, CEO and executive director of the U.N. Global Compact, warns that this growing “north-south divide” can no longer be ignored.
A Chasm of Inequality
Climate change has become a deeply political issue, with rich nations failing to meet their financial commitments to support developing countries in their efforts to adapt to the changing climate. The recent COP29 summit in Baku, Azerbaijan, ended in acrimony, with developing nations left feeling frustrated and disillusioned by the lack of progress.
The Consequences of Division
The consequences of this divide are far-reaching. It stifles the flow of capital, hinders technology exchange, and erodes trust between nations. Ojiambo warns that business leaders can no longer afford to ignore the politics of climate change and must instead work within it to find solutions.
Healing a Fractured World
Strengthening public-private partnerships and providing affordable capital to businesses in the global south is crucial to bridging the divide. The global south produces the least amount of emissions yet is most impacted by climate action, leading to anxiety and angst among its leaders.
A Tipping Point
Climate scientists warn that rising sea levels, frequent cyclones, and food insecurity pose an existential threat to small island developing nations. A rise of 1.5 C in global average temperatures would intensify flooding and extreme drought in Africa, home to 32 of the world’s 48 least developed countries.
A Major Opportunity
Gender divides could be a major opportunity for business leaders to achieve sustainability goals. Applying a “gender lens” to unlocking finance could be significant, as female-led businesses are often more concerned about climate change.
Unlocking Finance
Gender lens investing is still in its infancy, but it has the potential to make a significant impact. According to gender finance network 2X Global, gender lens investing accounted for almost $8 billion of private market investment in 2023.
The Time to Act is Now
The world is at a critical juncture, and the time to act is now. Business leaders must work together to find solutions to the growing divide between rich and poor nations and to address the existential threat of climate change.
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