Between October 31 and November 12, the UK will host the United Nations Climate Change Conference. It is meant to be a meeting for parties to accelerate action towards the goals of the so-called Paris Agreement, which set out targets for the reduction of carbon emissions. However, there are still too many doubters in very powerful positions around the world who have managed to stall action against climate change. Their vested interests and their money have made sure of that.

What is noticeable is that there is an increased interest in climate change, meaning that those who were neutral on the issue have come to accept that climate change is a reality. There is also an increased awareness that governments should adopt policies to fight against the impact of climate change. The term ‘green economy’ is, in fact, a result of this increased awareness.

An issue that needs to be assessed thoroughly is how climate change will or will not impact the economy. Any transition will lead to structural changes in the economic activity of some regions and countries, and this will bring with it some pain, even if there will be long-term gains.

Climate change is already affecting the economy of some countries, especially those where there is a greater reliance on agriculture and fisheries activities. It is affecting jobs, incomes, investments and businesses. As such, doing nothing will only make things worse. There is the risk of disruption in several economic activities such as manufacturing and tourism. There could be displacements of segments of the world population, leading to another migration crisis. Some countries may disappear totally from the map.

Therefore, doing nothing about climate change is not an option. Climate change is posing a systemic risk to the global economy and we must address the economic impact of climate change and restructure the global economy. However, it cannot be a zero-sum game where the benefits equal the costs. Such a restructuring needs to lead to a win-win situation, where the benefits outweigh the costs in all countries.

There was a time when countries that wanted to protect their economy would introduce tariffs at their borders. The current wrangle between the EU and the UK about the Northern Ireland Protocol is all about the imposition of border controls to provide protection to their respective economy.

However, the climate knows no borders and its impact is felt around the world in various ways and to a varying degree, be it extreme heat, flooding, storms, wildfires and other phenomena. The impact on the economy will affect most of our activities and will destabilise the world’s financial system. The ‘green economy’ initiative is meant to support the required transition and, therefore, cannot be seen as just a fad.

We need to keep in mind that there are whole communities and even whole countries whose income is totally reliant on fossil fuels. Any economic restructuring will need to provide support so that these countries can redesign their economy. Because climate knows no borders, the impact of climate change on the economy is everybody’s challenge.

Because climate knows no borders, the impact of climate change on the economy is everybody’s challenge

It is worth reminding everyone that Malta had submitted a proposal to the United Nations to take action to protect global climate. The proposal, formulated by Prof. David Attard, was submitted in 1988 by the government led by Eddie Fenech Adami, and resulted in the 1992 UN Convention on the Protection of Global Climate.

This shows that, as a country, we have long been aware of the impact of climate change. We must play our part, and although it may mean an element of restructuring of our economy, we should not shy away from our responsibilities.

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