Net-zero emissions transition must be fair

The 2021 United Nations Climate Change Conference that concluded on Saturday in Glasgow, Scotland, has made it clear that the transition to a zero-emissions economy must be based on translating aspirations into concrete actions and all parties agreeing on practical solutions based on the principle of equity.

But these actions should not affect the sustained economic development of countries in Asia, Africa and the Middle East. In the foreseeable future, the countries will unavoidably use fossil fuels, and the banks still need to provide financing to the high-emissions industries.

Some people are urging the banks to stop such lending, and the countries to stop using fossil fuels. But although green technologies and renewable energies have developed quickly, they cannot replace fossil fuels overnight. Doing so will force hundreds of millions of people into poverty, and collapse the world economy. Which is unfair and unrealistic.

So the developed countries need to make a choice between that and taking practical measures to help the less-developed countries maintain their development while facing up to the challenges of climate change. In other words, the world must respect the emerging market economies' rational needs to improve their people's livelihoods, and to pursue new development.

The developed countries' financing and technology assistance to the less-developed countries is the key to filling the gap in emissions reduction between countries. The funds and technologies should be used to promote the development of infrastructure for sustainable development and renewable energy, and green technology research and development.

Those opposing banks' lending to fossil fuel companies should be practical as these companies can play a huge role in accelerating the development and application of green technologies, and creating jobs, boosting growth and generating tax revenues in the emerging market economies.

Now is the time for the banks and governments to work together to verify the most needy entities and sectors to receive funding and technology assistance. To address a common challenge entails the coordinated efforts of all parties.