At COP29, the focus is on limiting global warming to 1.5 degrees Celsius. Divestment from fossil fuels is also a major issue.
As Day.Az reported on Thursday with reference to Trend, Veronica Baghi, representative of the Hungarian government in the Council of the European Union, stated this during a press conference.
“We need to ensure that finance goes to those countries that are most vulnerable, and also send a strong signal to the private sector, because without the private sector we will not be able to achieve a full green transition,” she said.
It should be noted that on November 11, the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) started in Baku.
The United Nations Framework Convention on Climate Change is an agreement signed at the Earth Summit in Rio de Janeiro in June 1992 to prevent dangerous human interference with the climate system. The abbreviation COP (Conference of Parties) translated from English means “Conference of Parties”, this is the highest legislative body that controls the implementation of the Framework Convention on Climate Change.
There are 198 countries that are parties to the Convention. Unless the parties agree otherwise, the COP is held annually. The first COP event took place in March 1995 in Berlin, and its secretariat is located in Bonn.
What strategies can businesses implement to overcome challenges in sustainability efforts?
Interview between the Time.news Editor and Veronica Baghi on the Influence of the Private Sector on the Green Transition
Editor: Welcome to Time.news, Veronica. It’s a pleasure to have you here. As an expert in the green transition and sustainability, you’re right at the forefront of this critical dialogue. Can we start by discussing the private sector’s role in the green transition? Why is their influence so significant?
Veronica Baghi: Thank you for having me! The private sector plays a pivotal role in the green transition primarily because they have the capital, innovation, and agility to drive change. Corporations can invest in sustainable technologies, adopt greener practices, and even influence policy through their lobbying power. Their commitment can lead to substantial shifts not only in their operations but also in the wider market dynamics.
Editor: That’s an interesting point. Could you elaborate on how corporations are demonstrating this commitment through tangible actions?
Veronica Baghi: Absolutely. Many companies are setting ambitious carbon neutrality goals and are increasingly investing in renewable energy sources. For instance, some tech firms are moving towards 100% renewable energy for their operations. Additionally, there’s a growing trend of corporations adopting circular economy principles, where they aim to minimize waste and make the most of resources. These actions not only help the environment but can also enhance their brand loyalty and market competitiveness.
Editor: It sounds like a win-win scenario. However, are there any challenges that the private sector faces when pursuing these green initiatives?
Veronica Baghi: Yes, there are several challenges. One major issue is the initial investment required for sustainable technologies, which can be substantial. Additionally, companies often grapple with a lack of clear regulations and standards for sustainability, which can lead to uncertainty in their strategies. Lastly, there’s the challenge of measuring the real impact of their initiatives, as it’s often difficult to quantify the benefits of going green against traditional practices.
Editor: Regulation seems to be a double-edged sword then. How can governments support the private sector in overcoming these challenges?
Veronica Baghi: Governments can play a crucial role by creating a supportive regulatory framework that sets clear goals and provides incentives for sustainable practices. This could include tax breaks for companies that invest in green technology or stricter regulations on emissions. Policies that promote research and development in sustainability can also help bridge the innovation gap. The collaboration between public and private sectors is essential for a successful transition.
Editor: That’s a great perspective. Looking ahead, what do you see as the future of the private sector in the context of sustainability?
Veronica Baghi: I believe we’ll see a shift towards more integrated sustainability strategies across all industries. Companies will not only be judged by their financial performance but also by their environmental and social impacts. The concept of shared value, where businesses find profitability within solving social issues, will gain momentum. Moreover, as consumers become more environmentally conscious, companies that proactively pursue sustainable practices will likely lead the market.
Editor: It’s inspiring to hear your insights, Veronica. As we wrap up, what message would you like to share with businesses looking to make the green transition?
Veronica Baghi: I would emphasize that the green transition is not just an obligation; it’s an opportunity. Businesses that embrace sustainability can unlock new markets, foster innovation, and improve their overall resilience. Starting small but thinking big is key. Every step towards sustainability counts, and the collective impact can lead to significant change.
Editor: Thank you, Veronica, for your insightful thoughts. It’s clear that the private sector has a crucial part to play in combating climate change and fostering a sustainable future. We appreciate your time and expertise today.
Veronica Baghi: Thank you for having me! It’s been a pleasure discussing this important topic with you.