Global temperatures are rapidly on the rise
As the infamous “climate stripes” infographic shows, the global average temperature has increased dramatically in recent decades, with the ten warmest years on record occurring in just the past 16 years. In 2015 international leaders came together to sign the Paris Agreement, a set of principles and commitments aimed at limiting the global average temperature rise to 1.5 degrees Celsius above pre-industrial levels in order to avoid the worst-case climate scenario. To meet this target, financial flows and innovative investments towards tackling climate change and reducing greenhouse-gas emissions are essential.
According to the Climate Policy Initiative, climate-finance flows have been steadily increasing, from US$360bn in 2012 to an estimated US$608-622bn in 2019. However, these figures remain far below the levels of investment needed—US$1.6-3.8trn—to keep global warming within a 1.5 degree Celsius scenario.
But the level of investment is not
Failure to reach these levels of investment will lead to the devastating consequences associated with higher levels of global warming. At 2 degrees Celsius, for example, the deadly heatwaves of 2015 in Pakistan and India would likely become an annual occurrence, according to the Intergovernmental Panel on Climate Change (IPCC). Moreover, an increase in deforestation and wildfires in South America could lead to a severe reduction in rainforest biomass.
The IPCC also reports that a warming of 1.5-2 degrees Celsius would lead to the irreversible loss of the Greenland ice sheet, causing a continued rise in sea level over hundreds to thousands of years. Additionally, the risk of heat-associated deaths and diseases will increase, and food will be scarcer in many more areas around the world, including southern Africa, the Mediterranean, Central Europe and the Amazon.
Where funding needs to flow
Major investments will be imperative to meet the 1.5-degree goal, notably in renewable-energy technology and infrastructure, energy efficiency, clean transport, alternative low-carbon materials, sustainable food-systems, protecting natural carbon sinks, business-model innovations, climate justice initiatives and overall engagement and awareness on climate.
Data points
The Sustainability Project's "data points" series visualises and contextualises news-worthy and relevant information. Explore our previous data points. Explore our first data point on the rise of EVs in Europe.
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