'Net Zero' has been the socio-political buzz word of the world, at least in parts, for the past decade or so. Politicians and corporations alike have reiterated the need for it on many forums, almost relentlessly. Now, one of the world's largest financial forces in the world, JP Morgan, has asked stakeholders, including government and corporations over the tangibility of their 'Net Zero' targets.
Reality Check On 'Net Zero'
'Net Zero', in simpler words, is the balance struck or attained between Greenhouse gases produced or released into the atmosphere and the amount removed. Here, some of the most consequential greenhouse gases include, Carbon dioxide, which accounts for most of the human emissions, and Methane, which even in diminutive amounts can cause insurmountable destruction.
According JP Morgan, increasing debt of governments throughout the globe along with structural orientation of the world, given the myriad uncertainties that shroud the landscape of the world, are factors, that stakeholders need to consider and ruminate over, before attaining any ostensibly 'lofty' targets .
Efforts to further strive towards the same may only increase the debt burden of governments across the world. In the current context, major economies around the world are struggling in the macro and micro sense. May it be the European powerhouse of Germany, France or China, most of the bigwigs of the global arena are looking for an economic semblance of tranquility. In addition, efforts to 'greenify' the economy, particularly in western Europe, specifically in the agriculture/farming sector has been met with fierce resistance from farmers.
Efforts to 'greenify' the economy, particularly in western Europe, specifically in the agriculture/farming sector has been met with fierce resistance from farmers. |
The Need For 'Action'
On the other hand, Climate Change is striking reality, this, therefore is the need of the hour for major economies, particularly the entities responsible for the environmental mess, to take the burden and not get entangled in the elusive number game of banking corporations. The big name which has asked stakeholders to attain a 'reality check' on the feasibility has its own hands darkened in fossil fuel.
JP Morgan is said to be one of the largest funders of the black fuel in the world. In 2022 alone, the American-giant pumped in nearly USD 40 billion into the fossil fuel industry. This mind you was that time in history, when the world was still in the hold of the pandemic, and many lives and livelihood came to a grinding halt.
JP Morgan in the larger picture has shelled out close to USD 450 billion into the industry making non-renewable energy between 2016 and 2022. | File
This is also the time, when major names in the oil and crude business made bumper profits.
JP Morgan in the larger picture has shelled out close to USD 450 billion into the industry making non-renewable energy between 2016 and 2022.
Therefore, these observations from the JP Morgan come from a rather uncomfortable position, while promoting pragmatism in policymaking.
