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Climatic defaults

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Across the world, governments must step up efforts. A market for carbon credit trading would help. This calls for a consensus among all major emitters. It’s tough. But the least we could do is to try.

It’s known all too well that climate change is causing all sorts of problems for the planet we inhabit. But there are few estimates of just how badly business could suffer. A report by CDP, a non-profit entity that collates ecological disclosures made by companies, has quantified some risks specific to India. A rise in extreme weather events, such as floods and droughts, could potentially turn debt worth more than 6.19 trillion at our financial institutions bad.

It’s known all too well that climate change is causing all sorts of problems for the planet we inhabit. But there are few estimates of just how badly business could suffer. A report by CDP, a non-profit entity that collates ecological disclosures made by companies, has quantified some risks specific to India. A rise in extreme weather events, such as floods and droughts, could potentially turn debt worth more than 6.19 trillion at our financial institutions bad.

This is a staggering figure. It underlines the gravity of a crisis that only coordinated global action can address. While the Paris Agreement of 2015 had set out mutually agreed goals for the reduction of carbon emissions, a pact that the US wasn’t part of but is finally joining, many countries are falling behind on meeting the targets. With the US giving up its four-year denial of the emergency, hopes have arisen of Washington-led progress. India has been doing its bit but might miss its goals, too. Across the world, governments must step up efforts. A market for carbon credit trading would help. This calls for a consensus among all major emitters. It’s tough. But the least we could do is to try.

This is a staggering figure. It underlines the gravity of a crisis that only coordinated global action can address. While the Paris Agreement of 2015 had set out mutually agreed goals for the reduction of carbon emissions, a pact that the US wasn’t part of but is finally joining, many countries are falling behind on meeting the targets. With the US giving up its four-year denial of the emergency, hopes have arisen of Washington-led progress. India has been doing its bit but might miss its goals, too. Across the world, governments must step up efforts. A market for carbon credit trading would help. This calls for a consensus among all major emitters. It’s tough. But the least we could do is to try.

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