By MICHAEL H. SAHN //
We confront new reports every day describing new threats to the environment – the harsh realities of global climate change.
Fortunately, our efforts to deal with climate change are increasing, sometimes in profound ways. Government and business interests are converging to meet the challenge. This is the game-changer moment in climate action.
Recent developments confirm that government actions, policies and priorities – and private-sector actions to build, finance and promote sustainability – are starting to work hand-in-hand. A public/private partnership to achieve a green economy with net-zero emissions is taking shape.
The goal is to have greenhouse-gas emissions equal to the amount of greenhouse gasses removed from the atmosphere. Acting alone, neither government or business can achieve what science tells us is needed. This is an effort of global scope and significance.
Get ready to hear a lot about “green financing” and the “green economy,” about corporate goal posts on climate action and company investments in green jobs and technologies. Changes in public- and private-sector views will doubtlessly push the response to climate change.
Michael Sahn: A lot easier being green.
There are several notable initiatives underway. On the international front, United Nations Special Envoy on Climate Action and Finance Mark Carney has called for worldwide private investment and finance to align with climate action goals. As Carney notes, the dialogue on climate change has shifted from viewing action as a risk to recognizing the economic opportunities inherent to net-zero goals.
Likewise, United Nations Secretary General Antonio Guterres has called for international private-sector investment led by the Net-Zero Asset Owners Alliance, a UN-convened group of 33 international investors dedicated to achieving net-zero emissions by 2050.
Domestically, the Biden Administration has committed to addressing climate change with a variety of initiatives, including the development of national strategies to achieve net-zero emissions, the immediate rejoining of the Paris Agreement and new public policies rolling back Trump Administration moves that deregulated environmental-protection rules and fundamentally hamstrung America’s energy strategy.
Simply rescinding the permit for the Keystone XL pipeline project illustrates how President Biden seeks to unwind the Trump administration’s actions and move away from fossil fuels. Meanwhile, by joining the Climate Alliance – an international community of central banks and monetary regulators focused on environmental issues – the Federal Reserve is essentially telling U.S. financial institutions to consider the risks of climate change, and to implement policies that mitigate these impacts.
New York State understands that its ambitious goal of having 70 percent of statewide electricity come from renewable sources by 2030 will require the unbridled power of combined government and private-industry investments. Albany is taking action to leverage public and private monies toward this end – in his 2021 State of the State message, Gov. Andrew Cuomo outlined a “new green economy” built around clean and renewable energy, new electric-transmission facilities and retrained workers prepared for next-generation, environmentally sustainable industries.
New York City is also developing a green bond program to finance capital projects meeting sustainability metrics. The “green bonds” are expected to broaden the investor pool for these projects and create more opportunities for private capital to finance environmental protection.
Restoring environmental rules rolled back by the fossil-focused Trump Administration could take years. But the American investment infrastructure is taking notice of this profound environmental moment – not from the sidelines, but as active participants seeking new pathways to future prosperity. For instance, in a letter to CEOs around the world, BlackRock Chairman and CEO Laurence Fink urged corporate leaders to plan for actions that will create a net-zero economy.
This year is already witnessing transformative initiatives at a scale not previously attempted. With private sector buy-in – and a public sector willing to adopt programs that create jobs, wealth and economic benefits while addressing climate change – real climate action is more possible now than ever before.
Michael H. Sahn, Esq., is the managing member of Uniondale law firm Sahn Ward PLLC, where he concentrates on zoning and land-use planning, real estate law and transactions, and corporate, municipal and environmental law. He also represents the firm’s clients in civil litigation and appeals.
