Matthrew Phan, Business Times 14 Apr 08;
A GLOBAL recession could hurt investments in environmental companies and pose a short-term obstacle to tackling climate change, according to United Nations Environment Programme (UNEP) executive director Achim Steiner.
'We have to be aware of the potential damage that might occur to global investments in renewables, clean energy and the sustainability agenda generally if the world does plunge into recession,' he said in a recent e-mail interview.
Groupings like the Global Compact or the UNEP- inspired Principles for Responsible Investment now have some 300 institutions, with US$13 trillion of assets, under them.
And according to the UN, fifty US and European investors managing US$1.75 trillion in assets recently made a commitment to invest US$10 billion more in energy efficiency and clean energy technologies over the next two years.
A 'green economy' is emerging, said Mr Steiner, 'but it is not guaranteed, and needs to be nurtured'.
Another environment- linked macroeconomic concern is inflation - specifically that surrounding food supplies and food costs.
Climatic events have exacerbated this, as agricultural countries like Australia and China have recently suffered from prolonged drought and flooding.
To resolve the debate of whether growing crops for fuel cuts off food supplies to the poor, the UNEP is launching a new initiative - the Sustainable Management of Natural Resources Panel - to undertake life-cycle assessment of bio-fuels.
'We need to underline, in this recession-jittery moment, that in tackling climate change, we are addressing a wide range of other key issues from bio-diversity loss and land degradation to water shortages, air pollution and marine environment issues,' said Mr Steiner.
'If we do not overcome the climate change challenge, the boom-and-bust cycles of the past will be nothing compared to the bust cycles of the future,' the UNEP chief added.
