By Apoorv Gupta, Student at Dhirubhai Ambani International School, Mumbai.
A lie, a hoax, a possibility, a probability, and now, almost an inevitability. Over the years, our perception of climate change has evolved. First, the goal was to convince people that climate change was real. Then, it was to draw attention to the scale of its dire consequences. Now, the challenge is to bring about the change to mitigate its impact. A drop in emissions today can pull humanity back from the precipice of our planet’s destruction. A question then arises: how exactly can we effect real change?
There are broadly two approaches that can be followed – incentive-based policies and deterrence-based policies. Incentive-based policies provide incentives to encourage individuals or corporations to become more sustainable. Examples include subsidies on solar panel installation, covering the cost of refitting homes to be more energy efficient and price reductions on purchasing electric vehicles. Deterrence-based policies seek to direct individuals and corporations to reduce emissions or environmentally unfriendly behavior with penalties for non-compliance. This can manifest in the form of carbon taxes, fines for excessive pollution, or regulation that caps the amount of emissions.
I believe that if humanity is to win the battle against global warming, deterrence-based policies are our most powerful tool. Firstly, such policies have more potential to curb emissions especially from large corporations which would much rather comply than get fined or have their CEOs indicted. Consumers do not want to be associated with companies that engage in illicit activities and so companies run a risk of losing a considerable portion of their consumer base if they do not adhere to guidelines.In fact,the public image and reputation of companies get boosted from compliance with government policies.On the other hand, incentive-based policies would be less effective because switching to renewable energy or adopting sustainable practices requires a complete overhaul of manufacturing processes. Hence, despite the incentives, such policies are generally loss-making for companies.
The adoption of climate friendly practices by large corporations is very important as they operate globally and produce the lion’s share of emissions. Hence, having them participate can redefine the landscape of our battle against global warming.
In addition, deterrence-based policies are likely to get developing countries more involved in the environmental movement. Developing countries do not have the excess capital to offer monetary incentives to switch to green technologies. Hence, it becomes impossible for them to effect change in corporations through incentive-based policies.Unfortunately, it is the developing countries that face the worst effects of climate change to property and life, as large portions of their population are vulnerable and lack safety nets.Through deterrence- based policies,developing countries can bring about change from corporations.
Lastly, such policies have the power to effect change immediately. As soon as laws are put in place, companies and individuals must abide by them in a specified period. On the other hand, for incentive-based policies to work, monumental advancements would have to be made in renewable technology to make it affordable and economical, a process that could take decades.
Deterrence-based policies would bind the nations of the world together to implement the required changes, ensuring that all corporations and individuals play their part in curbing emissions. We have seen the successful example of Montreal Protocol where 198 parties agreed to phase out chlorofluorocarbons (CFCs) that were damaging the protective ozone layer. This ozone treaty sets out a schedule of targets and timetables for all developed and developing countries to phase out their use of CFCs. Recent evidence shows that the ozone hole over Antarctica is beginning to repair itself because of these concerted efforts.
As climate change drags humanity towards the point of no return, widespread changes need to be made immediately if we are to succeed in saving our planet. It is an extremely proximate problem and delaying action any further would be disastrous. Deterrence-based policies are the best tool we possess to repair the environmental damage that we have caused. Let us use it now when we still have time.
