We’ve talked before about the impact of climate change and how a financial system using Coro’s next-generation distributed ledger technology (DLT) and reverting to a gold standard can support a more sustainable future for our planet. On the eve of a new decade, we’re going to expand on this important theme.
In that article, we argued that the single largest factor in protecting the environment is moving away from a paper currency system that over stimulates our diet of massive consumption. Central banks are able to print an endless supply of paper currency, which has driven consumption to unsustainable levels.
The Real Cost of Climate Change
According to the Intergovernmental Panel on Climate Change (IPCC), human activity has driven the global temperature up 1°C (34°F) from pre-industrial levels. The IPCC estimates that global warming is likely to reach an increase of 1.5°C between 2030 and 2052 if warming continues at the current rate.
Climate change poses the largest risk to the future financial and economic stability of the world. There is a very real financial cost to the weather-related events that devastate communities and nations more frequently than ever before. This does not consider the human impact, including death, displacement, and other tragedies associated with these kinds of events.
Check out this eye-opening chart from the Bank of England:
Since 1980, the annual global economic cost of extreme weather events has increased from $50 billion to nearly $150 billion by 2016 – a 200% increase in only 26 short years.
In addition to the severe weather events, a warming climate would change precipitation patterns around the globe with a direct impact on agriculture, fisheries, and many other sectors including energy, tourism, construction, and insurance.
While policies implemented to combat climate change may also have wide-ranging impacts on a similar segment of industries if the mitigation efforts are not strong enough then the magnitude and pace of change in the future would need to be even greater. The European Central Bank estimates that this kind of late-to-the-game change could create the potential for a sudden market correction or even a recession.
This message is not meant to be a scare tactic. Our intention is to provide some context and data to illustrate the severity of global warming, climate change, and its impact on our lives now and in the future.
You’ll notice how most of the scientific research behind climate change focuses on the difference between the pre-industrial era and today. That’s because the modernization of humanity is a direct cause of the faster-than-normal warming that we are seeing across our planet.
This warming has accelerated in recent decades as emerging markets continue to modernize their economies and accelerate growth. While this kind of activity leads to better living standards, wages, opportunities, and generally a stronger nation, progress needs to be made in making modernization sustainable.
We are no longer in a position to recklessly pursue growth for growth’s sake. Doing so will only exacerbate the situation.
This is why we advocate for the shift from fiat money (aka paper money with no physical value) to gold.
By shifting back to a gold standard, governments would no longer be able to print unlimited supplies of money, reducing the associated over-consumption of natural resources. We don’t advocate for halting progress. Instead, we champion progress that leverages new, sustainable technologies in order to enable economic growth without sacrificing the future economic stability of nations and this planet.
Coro is committed to the leadership role in ushering in a sustainable financial future for everyone. Our focus goes beyond shareholders to include all stakeholders, our communities and our planet.