Building a Livable Planet

When it comes to climate actions coming out of COP27, headlines may focus on policies, finance, and negotiations. But the conference, now winding down its two weeks in Sharm El-Sheikh, Egypt, also has people at the heart of its agenda. ?

There’s been a clear focus on how climate change is already affecting populations and communities, such as the flooding in Pakistan last summer, which left one-third of the country underwater. The prolonged drought in Somalia, which has raised the risk of famine for millions, is another painful example. World leaders opened the conference with roundtables on the food and freshwater crises, while thematic days have focused on people issues, including youth and future leaders, gender, and civil society.?

As the planet warms, it is vital that business, public, and social leaders work together to create inclusive solutions, especially for those in the Global South, who will be disproportionately affected by climate change. ?

Here are insights from BCG that spotlight the people side of climate action.?

DRAWING WOMEN INTO THE FIGHT IS A WIN-WIN?

Today’s climate mitigation and adaptation strategies could push back progress on gender equity by 15 to 20 years. Why? So far, women are underrepresented in the fast-growing green economy, which puts them at a disadvantage in opportunities for employment, reskilling, and access to funding for green-tech startups.?

It’s possible, however, to shake up the current dynamic, not only to address the inequity issue but also to accelerate progress in mitigating climate change and adapting to it. Let’s look at two examples:?

Agriculture. Agriculture was responsible for 12% of all global greenhouse gas emissions in 2018, making it the second-largest contributor, after the energy sector. If women who are agriculture workers and farmers had the same level of access to investments in financing, reskilling, land, and insurance that men do—requiring increased investments of approximately $35 billion globally—the results would be dramatic. Such a shift could lead to a cumulative emissions reduction of about 27.5 gigatons of CO2 equivalent (CO2e), or nearly 1 gigaton per year from 2020 through 2050—about equal to the global emissions created by the aviation industry every year.?

STEM. Women account for only 36% of STEM (science, technology, engineering, and mathematics) students worldwide. If they participated in STEM fields at the same level as men, we might see an infusion of women-led startups, which could yield a total reduction of 12.7 gigatons of CO2e from 2020 through 2050, or roughly 0.5 gigatons annually. The projected effect would be more significant in developed countries, where the green economy is already taking off, but it could also have a major impact on the green-economy workforce of emerging countries in the medium to long term.?

EDUCATION AS A CRITICAL TOOL?

Often overlooked as a powerful catalyst for climate progress, education should be a more central theme in these discussions. It’s a tool that can help unlock social and economic transformation while addressing the root causes of climate change.??

Climate Literacy. Education can contribute to behavioral change at the individual and household level—when choosing modes of travel, what to eat and drink, or how to heat and cool one’s home, for example. By increasing students’ awareness and understanding, schools can empower young people to become agents of change in their local communities, instilling new norms and inspiring a sense of what’s possible. Early studies suggest that once young people become climate-literate, they help educate their families, knowledge that then spreads across communities.?

Green Skills. Education can equip today’s and tomorrow’s workers with the skills needed to scale the innovations that will ensure the transition to a green economy, which could deliver millions of new jobs in sustainable economies. And without the needed reskilling, nearly 77 million jobs could be at risk globally—although that risk will vary significantly by industry and geography. Reskilling is not only critical to develop the skills needed for green jobs (such as those in green energy) but also to ensure that displaced workers acquire skills that will be useful elsewhere in a more sustainable economy.??

THE INGREDIENTS OF A JUST TRANSITION?

The principles of a “just transition” may vary depending on region and the stakeholders involved, but the building blocks are much the same everywhere. As we transition to decarbonized economies, we need to create more jobs than we lose, effectively and fairly manage the labor migration that arises, and deeply understand the role of social and ecological welfare in the transition.?

Jobs. Coal mining jobs, for example, will need to be replaced by new roles in the renewable energy sector. That sounds straightforward enough, but it’s a complex shift. The new jobs have to pay as well—or better—than coal mining, which often offers good wages in emerging markets. Another challenge is that the growing renewable sector may offer opportunities far from coal mines, requiring workers to pick up their lives and move. For those who can’t migrate—and may be unable to go through the needed reskilling—we need social welfare in place to ensure sustainable livelihoods as old jobs disappear.???

Inclusivity and Trust. Another critical component of a just transition is including those who will be affected the most in the decision-making process. To ensure that we move to a greener, more socioeconomically equitable world than we all live in today, we need to make sure that everyone involved—including marginalized communities—take part in shaping their own future. This approach, with forums that include a mix of government, business, labor, and community leaders, will also build trust. This is critical. People need to know not only about the effects that?changes will have on their region, their country, and the planet—but also on themselves.??

For Further Reading?

• Why Climate Action Needs a Gender Focus?
• Education as a Catalyst for Climate Progress?
• The So What from BCG: Can Our Green Future Also Be Fair? ?
• BCG at COP27

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