Page 117

distinct climate change goal (#13), but climate action is also integral to the successful implementation of most of the other SDGs.NEW INVESTMENT MUST FLOW TO THE NEW ECONOMYClimate and development are locked together through basic cause and effect, by the need for an unprecedented transformation to a low-carbon economy and through the demanding timetable of action necessary to stay below the temperature goals.The absolute key to the new economy, therefore, is that all new investment be directed at priorities which target both climate and sustainability.The transformation to the new economy relies on getting low-carbon technology and investment deployed now because whatever we invest in today - be it power plant, road, bridge, widget or component – can lock-in the emissions of that investment for its lifetime. A significant resource for both governments and business together to determine how returns on climate and development investments can be maximised lies in those national climate action plans submitted to the UN – now from 189 countries covering 95.7 per cent of total global emissions.Independent studies of the plans estimate that, if they were all fully implemented, they would limit temperatures to somewhere around a three- degree rise.This is clearly not enough, which is why the Paris Agreement established schedules and transparent reporting structures to ensure that national climate action goals are lifted higher in time and which is why the whole scope of separate and collaborative public and private sector investment in faster climate action is so pressing.The plans are in essence blueprints of policy, actions and investment to take climate action, suited to the individual economic needs of each country. Almost by definition, they are also a roadmap towards more sustainable national futures.NEW ECONOMY LED BY NEW THINKINGThe ground for optimism is high. Not least because the fundamental yield equation is changing decisively in favour of clean energy and sustainability – investing in those solutions is now simply smarter and less risky. At a national and international level, this favorable direction of investment returns must now be pushed even further through policy and new technology to enhance development in every field and at every level of combined climate and sustainability action.Undoubtedly governments can speed this trend up with a broad and increasing range of proven incentives and policies while companies and investors still have a lot of room to move away from high-carbon solutions – traditional comfort zones but ultimately bright red danger zones for their own future profits.Importantly, the government and investment audiences for thinking about the new economy are at a high level of attention.Governments are looking towards the world of applied business and investment as they implement their national climate action plans and initiate preparations of the long-term, low emission development strategies called for under the Paris Agreement.Companies and investors are meanwhile looking for better quality, stable returns in an era of extremely low interest rates, declining returns from fossil fuel-based assets and fundamental climate change threats to resources, supply chains and markets.In short, the new economy is already with us.But new thinking by government at all levels, companies, investors and citizens must now ensure that everyone can quickly seize the opportunities and benefits tAbove: Christiana Figuereshat follow from that fact. ■SUMMATION 117