Governance of Earth

Global warming poses an existential threat to life on planet earth if greenhouse gas (GHG) emissions continue to rise leading to temperature rises beyond two degrees Celsius by 2100 compared to pre-industrial revolution temperature. Due to human activity, nature’s carbon cycle is unable to maintain carbon dioxide and methane concentration at levels that minimise global warming which brings devastating climate change and environmental damage. A number of climate accords have progressively tried to get nations to collaborate to reduce GHG emissions. The latest COP26 accord have obtained commitment from all nations and their business firms to achieve net carbon neutrality by 2050 with a few allowed to achieve it by 2060. Business firms have many tools to reduce GHG emissions including trading in carbon markets, carbon offsets and access to green bonds funding among others. Developing nations have got commitment from developed nations to partly fund their transition to green energy to reduce dependence on fossil fuels to drive their economic development. Public listed companies are increasingly required to incorporate environment, social and governance (ESG) reporting as part of their annual financial reports to show progress towards achieving net carbon neutrality by 2050.