New Report by the Intergovernmental Panel on Climate Change (IPCC)

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“The latest report by the Intergovernmental Panel on Climate Change (IPCC) sends a clear message: Climate change is increasingly becoming a question of humanity’s survival. If we do not act decisively now, millions of people will be forced to leave their homes. To slow down climate change and mitigate its impacts, the German Federal Government provided €3.65 billion last year. Of that, more than €3 billion was made available by the Federal Ministry for Economic Cooperation and Development (BMZ) alone to support climate protection and adaptation projects in developing countries.

But that is far too little. We would need to invest at least ten times that amount to promote climate-neutral development. This requires the large-scale generation of negative emissions – for example, through reforestation and humus-rich agriculture in semi-arid regions – as well as the promotion of renewable energies, energy efficiency, and synthetic fuels in non-industrialized countries.

Unfortunately, these international approaches have so far received too little attention in the German debate. The focus is mainly on the situation in Germany and on local activities, even though these alone cannot solve the climate problem. Even for the planned national measures, the available funds are insufficient. There is certainly no adequate financing for a more extensive international climate policy. Nevertheless, this has not stopped people from interpreting the IPCC report as if it also emphasized a primarily national focus.

Against this background, we are pleased that Minister Müller and the BMZ will launch a multi-stakeholder initiative called the Alliance for Development and Climate in the coming months. The goal is to engage non-state actors – especially companies and wealthy individuals – in making voluntary contributions to international climate protection and the implementation of the 2030 Agenda through high-quality voluntary CO₂ offsetting measures in non-industrialized countries.

Mobilizing non-state actors is currently one of the greatest opportunities we have to perhaps still achieve the 2°C target.”

Plant-for-the-Planet, the Global Marshall Plan Initiative, the Senate of Economy, the Foundation Responsibility, and many other actors pursue a different approach: international activities, massive reforestation, negative emissions, and emphasizing the special responsibility of the top emitters – those are wealthy individuals with a pronounced lifestyle and several hundred tons of individual CO₂ emissions per year.

Links:

Image source: pixabay/SD-Pictures

New Publications from FAW/n

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All the points addressed in the special report of the Intergovernmental Panel on Climate Change (IPCC), “Global Warming of 1.5°C”, can be found in the new book “The Billionaire Joker”, published by Murmann Verlag, by the institute’s director. It can be read as a response to the latest global climate report.

A book full of surprising insights, information, and findings. Anyone who wants to participate knowledgeably in the current situation should definitely read this book.

Climate. Positive. Now.
Global warming is progressing relentlessly. The crucial question: Can the international community still prevent a climate catastrophe?
Franz Josef Radermacher is cautiously optimistic. His proposal is brilliantly simple and rigorously calculated: Non-state actors in Germany and Europe voluntarily and at their own expense offset their greenhouse gas emissions – beyond all legal requirements and other individual measures – through high-quality CO2 compensation projects in non-industrialized countries. At the same time, substantial co-benefits regarding the UN Sustainable Development Goals are achieved. Key elements of implementation include reforestation, humus formation, wetland restoration, use of renewable energies, and climate-neutral synthetic fuels.

Overcoming conflicts of objectives between ecology, economy, and social issues. For an ecologically and socially oriented economy and the valorization of degraded nature.

Der Milliarden-Joker.

Franz Josef Radermacher is one of the country’s leading economists and systems scientists. On the international stage, he advises governments, companies, associations, and NGOs.

Further Information

Books, that were also recently published on the same topic:

Climate Neutrality – Hessen 5 Years Ahead

Martin J. Worms, Franz Josef Radermacher

Springer Fachmedien Wiesbaden, 01.10.2018 – 308 pages

The climate issue is gaining increasing importance. Global CO2 emissions continue to rise. In this context, the state of Hessen has taken an important step as a mid-level political entity, which is beginning to exert significant leverage. Hessen is the first German federal state to declare its intention to make its own administration climate-neutral by 2030. The Hessian climate-neutrality project is embedded in the state’s overarching sustainability strategy and is a project of outstanding significance within this strategy.

Excerpt from the Foreword

The international community has committed to the 2°C target in climate protection. In 2015, in Paris, this target was even tightened to “well below 2°C.” This goal requires that average global temperatures rise in the future by significantly less than 2°C compared to pre-industrial times. According to scientific analyses by the Intergovernmental Panel on Climate Change (IPCC), there is still a good chance under this condition to manage climate changes without catastrophic consequences for humanity. According to the 1992 UN Climate Convention in Rio de Janeiro and the 2015 Paris Agreement, this involves jointly – but with shared responsibility among the states – controlling the risks of uncontrolled atmospheric change.

In this context, the state of Hessen decided in 2009 to achieve climate neutrality for its administration by 2030, going far beyond existing legal obligations. The state has systematically pursued this goal within its sustainability strategy, in connection with other activities, thereby setting an example and achieving strong influence. This mainly applies to its properties but also to employee business travel, and the state achieves much more through interactions with numerous actors in Hessen at all levels.

This volume presents the spectrum of climate-related activities achieved in Hessen, which is of particular interest to us as editors, documents the accomplishments, and places them in a global context. Who would have thought eight years ago that so much could be achieved in such a short time – or even five years ago, when the first edition of the now revised and newly published book “Climate Neutrality – Hessen Leads the Way” came out?

Microcredits

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The concept of microcredits – the provision of small loans to the poor worldwide – gained international recognition when the Nobel Peace Prize was awarded in 2006 to the foremost promoter of this idea, Prof. Muhammad Yunus, founder of the Grameen Bank and numerous other social business ventures in Bangladesh. However, the “hype” triggered by this recognition also gave rise to controversial forms of microcredit lending. This represents a development similar to what the world experienced with conventional financial mechanisms during the global financial crisis.

Overview: Microcredits

In 2006, Muhammad Yunus received the Nobel Peace Prize for his idea of microcredits. Since then, substantial public and private funds have flowed into microfinance. The goal was to strengthen small businesses, reduce poverty in countries of the Global South, and, above all, provide women with income and greater independence.

Microinsurance Life Stories – Presentation of the Microcredit Study (M. Yunus)

Zum Start der Allianz-Ausstellung „Microinsurance Life Stories“ und der Vorstellung einer neuen Studie zur Wirkung von Mikrokrediten besuchte Friedensnobelpreisträger Muhammad Yunus das Allianz Forum in Berlin. In seiner Rede unterstrich der Gründer der Mikrokredit-Bewegung einmal mehr, wie seine Ideen den Kapitalismus revolutionieren können. Allianz SE – München, 18.11.2014 (mehr Infos auf der Webseite der Allianz). At the opening of the Allianz exhibition “Microinsurance Life Stories” and the presentation of a new study on the impact of microcredits, Nobel Peace Prize laureate Muhammad Yunus visited the Allianz Forum in Berlin. In his speech, the founder of the microcredit movement once again emphasized how his ideas could revolutionize capitalism. Allianz SE – Munich, 18.11.2014 (more information on the website of the Alliance).

Sustainable Development

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Book: “Voluntary Climate Neutrality of the Private Sector – Key to Achieving the 2°C Target”

Combating climate change is one of the major challenges for international politics. It is about far more than just an ecological issue. It concerns the protection of prosperity and freedom, and potentially even matters of war and peace. From our perspective at the Senate of Economy, it has always been clear that climate policy must overcome traditional frameworks of thinking. We need international solutions. In addition to political action, we must activate the private sector – especially the wealthy segment of it – and alongside all efforts to avoid and reduce greenhouse gas emissions, particularly CO2, we must also remove it from the atmosphere in the form of so-called negative emissions.

Research Project: “A Better Design of Globalization: Action Potentials from a Development Policy Perspective”

The project comprises two sub-projects: “Value Chains and Sustainability – Opportunities and Limits under WTO and EU Law”and “Implementation of the Sustainable Development Goals 2015-2030 – Requirements for Global Governance and Implementation Possibilities”.

Image source: Pixabay

Marshall Plan with Africa

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The Global Marshall Plan is a concept for a balanced world. It consists of five strategically interconnected pillars:

  1. Rapid achievement of the United Nations’ globally agreed Millennium Development Goals.
  2. Mobilization of an average of USD 100 billion per year additionally from 2008–2015 for development cooperation.
  3. Fair mechanisms for raising the required funds. The Global Marshall Plan Initiative supports the targeted 0.7 percent funding level for development cooperation based on national budgets.
  4. Gradual realization of a worldwide eco-social market economy and overcoming global market fundamentalism through the establishment of a better regulatory framework for the world economy.
  5. Preconditions for achieving a reasonable regulatory framework include fair and cooperative partnerships at all levels, adequate financial flows, promotion of good governance, combating corruption, and coordinated, grassroots-oriented use of funds to contribute to self-directed development.

The Global Marshall Plan provides a framework for achieving a balanced future. Growing support for this approach in politics, business, and civil society gives hope, but the path ahead remains long and arduous. Success is far from guaranteed.

Key Points for a Marshall Plan with Africa (Draft)

More than ever, our future – and that of our children and grandchildren – is linked to the future of our neighboring continent, Africa. By 2050, Africa’s population will double, creating global challenges that we must already address. These include, for example, the core question of how to create 20 million jobs per year, ensure food security for people in Africa, and establish sustainable energy supply – without further burdening the climate or depleting environmental resources. [Read more and download]

Migration, Sustainability, and a Marshall Plan with Africa

Memorandum for the German Federal Government

The Club of Rome and the Senate of Economy have submitted the memorandum “Migration, Sustainability, and a Marshall Plan with Africa” to the German Federal Government. Many authors contributed to this work. The results are available in both a short and long version. Some contributions were condensed into shorter versions for space reasons in the memorandum. The longer texts are included in a separate material volume. [Read more and download]

IInterview: “We Need Enlightenment”

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With a lecture on the topic “Globalization, Sustainability, Future: Can We Still Be Saved?”, mathematician, economist, and sustainability expert Prof. Dr. Dr. Franz Josef Radermacher enriched the recent general assembly of Pax-Bank. In an interview with Tom Veltmann, sustainability and brand management expert at Pax-Bank, Professor Radermacher shares his views on the world of tomorrow – and the role banks can play in it.

The full interview is available for download as a PDF.

Heating Oil Doesn’t Have to Be Harmful to the Climate

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AVIA has launched the first CO2-neutral heating oil on the market, with no extra cost to consumers for its environmental friendliness. The emissions generated from burning AVIA heating oil are now offset through effective climate protection projects.

Outside of Germany, AVIA invests in a total of four different projects in four countries. These include a run-of-river hydropower plant in the Himalayas in India, reforestation in Uruguay, investments in more efficient cooking stoves in Uganda, and improvements in energy efficiency in Mongolia. (Note: these projects are listed on AVIA’s website as of 2021.)

Prof. Franz Josef Radermacher commented on this positive development: “Limiting global warming will only succeed if the wealthier half of the world – and thus the economies in these countries – provides the funding for concrete CO2 reduction measures, both at home and worldwide. In this sense, AVIA’s initiative is truly groundbreaking.”

For AVIA, this investment is part of a business strategy that began 15 years ago, focusing on alternative and renewable sources for heating and energy supply. Overall, the project can save over one million tons of CO2-equivalent per year – equivalent to the consumption of approximately 185,000 households

The full press release can be found here.

Image source: John R Perry (pixabay)

New FAW/n Research Project in Cooperation with the BMZ

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FAW/n is working with partners in interaction with the BMZ on an exciting new mandate. Research Project: “A Better Design of Globalization: Action Potentials from a Development Policy Perspective”.

The project comprises two sub-projects: “Value Chains and Sustainability – Opportunities and Limits under WTO and EU Law” and “Implementation of the Sustainable Development Goals 2015-2030 – Requirements for Global Governance and Implementation Possibilities”.

Sub-project I of the Research Project:

“A Better Design of Globalization: Action Potentials from a Development Policy Perspective”. Study: “Value Chains and Sustainability – Opportunities and Limits under WTO and EU Law”. The topic of sustainability is gaining increasing international significance in the context of global value chains. The BMZ is particularly active in this field and, following major accidents in textile production facilities in Bangladesh and Pakistan, has launched initiatives with high public visibility. Among other outcomes, this has led to the establishment of the label “Alliance for Sustainable Textiles”, which has since been joined by a large number of German manufacturers and retail chains in the sector. The study will specifically examine six approaches of varying degrees of impact:

  1. Use of labeling instruments
  2. Subsidies via a trade levy
  3. Value-added tax options and customs preferences
  4. Public procurement
  5. Economy for the Common Good
  6. Changes at the WTO level

Sub-project II of the Research Project:

“A Better Design of Globalization: Action Potentials from a Development Policy Perspective”. Study: “Implementation of the Sustainable Development Goals 2015–2030 – Requirements for Global Governance and Implementation Possibilities”.

This study takes the recent adoption of the 17 so-called Sustainable Development Goals (SDGs) as its starting point. Behind the 17 SDGs lie 169 sub-goals. As with the earlier MDGs, these goals are legally non-binding, there is no dedicated budget, and the exact implementation responsibility is unclear, aside from each government’s obligation to implement them within its own territory. The absolutely necessary international interaction, without which many goals cannot be achieved, is far less clearly defined. This particularly applies to essential financing instruments, which must ultimately be borne directly or indirectly by wealthy countries if development is to succeed – similar to the newly agreed Green Climate Fund and other instruments providing at least USD 100 billion per year in support of activities in poorer countries in the climate sector.

However, providing these funds will be challenging, and many obstacles stand in the way of implementing the goals. This is especially true as some goals contradict each other, at least given current technology. Clearly, the goal of increasing prosperity for more and more people alongside rapidly growing global populations is not compatible with the formulated environmental protection goals under today’s technologies and current global market regulations. The study seeks to identify which immediate, implementable measures are still possible. It also discusses what a global governance structure with a real chance of implementation should look like – one that can potentially achieve the goals. Such a structure must also induce the development of other technical solutions that enable increased prosperity with low resource consumption while avoiding a climate catastrophe for people worldwide. This can build on the recent international reorientation toward sustainable economic systems, shifting the perspective from free markets to ecologically and socially regulated markets (green and inclusive markets as well as green and inclusive growth).

FAW/n Mourns the Passing of Lothar Späth

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FAW/n has received with deep sadness the news of the death of former Minister President of Baden-Württemberg, Lothar Späth.

As Minister President, Lothar Späth made a significant contribution not only to advancing our state and establishing the Science City of Ulm, but also, in this context, to founding the then Research Institute for Applied Knowledge Processing (FAW) – the first institute for artificial intelligence in Germany – together with partners from industry and the University of Ulm. After his transition from politics to business, Lothar Späth maintained close ties with the FAW, especially with the institute’s director, and later also with FAW/n. Companies from his sphere of influence, such as Jenoptik and m + w Zander, were at times sponsors of the FAW. We will preserve the memory of Lothar Späth with deep respect and gratitude.

Photo: Inauguration of the FAW–fischertechnik production facility in 1990. From left to right: Klaus Fischer (fischer Group of Companies), Dr. Eberhard Leibing (Ministry of Economic Affairs, Stuttgart; then Chairman of the Board of Trustees), Hanns Albrecht Maute (Ministry of Economic Affairs, Stuttgart), Lothar Späth, Helmut Xander (LEG, builder of the FAW), Institute Director Prof. F. J. Radermacher, Prof. Werner Mellis (then Daimler Benz AG, Ulm)

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Image source: Wikimedia

UN Climate Conference in Paris 2015: Press Release

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Prof. Franz Josef Radermacher, President of the Senate of Economy International, welcomes the results of the Paris Climate Summit. What was achieved there is a major step forward. Of course, many had hoped for more – but that was not realistic. What has now been achieved represents half the battle on the path toward meeting the 2°C target – and perhaps it may even be possible to stay below it. The current outcome opens up an opportunity for the private sector to deliver the other half. Voluntary climate neutrality and corresponding measures by companies, organizations, and individuals are the key. The World Forest Initiative of the Senate illustrates what now needs to be done.

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In a sense, politics has now closed the gap that previously prevented the private sector from truly addressing the issue of climate change. We now have a kind of upper limit for future CO₂ emissions, and that is good news, because it means we can now work toward a defined target. We expect that this agreement will reduce cumulative global CO₂ emissions by around 500 billion tons by 2050 compared to the levels that would have been emitted without the agreement. This is not enough to fully meet the CO₂ target, but it is still significant – roughly half of the total task ahead. And now that we have an upper limit, we know what still needs to be done: approximately another 500 billion tons by 2050. The private sector can achieve this through voluntary programs, provided that political actors support this approach. In particular, the private sector can – and will – voluntarily invest, beyond legal obligations, to retire emission rights and/or to tighten the annual amounts of greenhouse gas emissions available to countries and governments through contractual arrangements or other mechanisms.

The complete press release can be found here.

Image source: Wikimedia