Urgent Call to Action for the Climate Crisis

Prof. Dr. Jeffrey D. Sachs: Calls for government, private sector and academia to develop urgent action plan for climate crisis Prof. Dr. Jeffrey D. Sachs, one of the keynote speakers at the 5th Turkey Capital Markets Congress held by Turkey Capital Markets Association, made important findings on sustainability and climate crisis. Sachs stated that Turkey could become a leader in its region through decarbonization efforts. The 5th Turkey Capital Markets Congress, organized by Turkey Capital Markets Association under the theme "Together Again," attracted significant interest from both domestic and international participants. The two-day Congress hosted approximately 200 speakers including academics, experts, leaders and business executives.

Climate crisis poses a threat to humanity

Prof. Dr. Jeffrey D. Sachs, one of the keynote speakers at the Congress, shared his assessments on sustainable development and climate crisis under the sponsorship of Turkey Development and Investment Bank. In his speech, Prof. Dr. Jeffrey D. Sachs touched on issues raised at the 26th United Nations Climate Change Conference (COP 26) held in Glasgow, Scotland in recent weeks. Noting that the conference was followed with great interest by all countries, Sachs said, "At this United Nations climate change event, new ideas were discussed on sustainable development and climate crisis. At the COP26 Climate Summit attended by 92 member states of the United Nations, we addressed problems created by man-made climate change. A consensus was reached on how dangerous climate change could be for the world and agreement was reached on the steps to be taken to keep warming limited to 1.5 degrees Celsius (°C)," he said.

"Hundreds of billions of dollars are being lost due to climate events"

Drawing attention to the fact that global warming is bringing world temperatures close to the 1.5°C threshold, Prof. Dr. Sachs stated, "We are witnessing the negative consequences of this warming very closely in Turkey as well. The drought occurring in Syria and the decrease in water accumulation in hydroelectric plants, forest fires occurring everywhere around the world, heat waves, rising seas, extreme storms, floods and increasingly intense tornadoes—these are the results of this warming... And hundreds of billions of dollars are being lost due to climate activities caused by these problems," he said. Sachs stated that agreement was reached at the COP26 Climate Summit on keeping temperature increase below 1.5°C, but noted that there was no consensus on solving the problem. Sachs also said the following regarding Turkey: "Prior to the COP26 Climate Summit, the Turkish government made a commitment to decarbonization (zero carbon) by 2053. This means a significant challenge for Turkey. Because 85 percent of Turkey's main energy sources come from fossil fuels such as natural gas, oil and coal. As recently as 2019, the Turkish government had increased thermal plant production powered by coal and lignite. Turkey made a commitment to decarbonization in line with the Paris Agreement, but what matters is what action plans exist on this matter." "Countries not making progress on sustainability will lose competitive strength" "Countries and governments around the world are making commitments. But there is no consistent and sustainable action and implementation plan for reaching these targets," said Prof. Sachs. "In this context, I would like to make a call to Turkey's private sector, government and academia. Planning should be done this year on how to reach such an ambitious target. Not only to protect the climate, but also from an economic competitiveness perspective, this action plan is of great importance. Because as you know, the European Union wants to introduce border regulations on carbon regulation. What is meant here is that the carbon footprint of products imported into the European Union will be examined. Therefore, Turkey will face obstacles at customs when exporting products such as iron and steel or products based on fossil fuel consumption. What we understand from this is that countries not making progress in terms of sustainability will lose their competitive strength," he said.

Sectors should prioritize energy efficiency

Prof. Dr. Jeffrey D. Sachs noted that the construction sector, which holds significant importance in the Turkish economy, must also transition to sustainable high technology in this regard, stating, "Every sector must align with decarbonization within itself. For example, for energy efficiency or embedding solar modules into building structures, applications such as green windows, green terraces and green roofs, and alongside these, high technologies such as photovoltaic energy production are gaining major importance and construction companies need to invest in this area. On the other hand, steel producers face serious technological challenges in production. There are many changes they need to make for decarbonization. One of these is the use of hydrogen in iron ore processing and steel production," he said.

"Regional consensus and cooperation are essential"

Reminding that Turkey has only 23 years to reach the targets it has committed to, Sachs stated: "We know the basic strategy needed here. Until now, Turkey has been producing based on energy obtained from petroleum, natural gas and coal as well as hydroelectric plants. But now it must benefit from wind and solar for decarbonization. A strategy needs to be created for using these areas and producing energy. Green technologies must be put into operation as quickly as possible for these purposes. The transformation must also be sustainable and all members of Turkish society must be able to benefit from these changes. In terms of job creation, regional development, and access of everyone in Turkey to economic needs and expectations, this transformation must be inclusive. For this reason, energy transformation and sustainable development must be addressed on a broader scale and must be aligned with sustainable development goals. A clear strategy and clear partnership are needed for all of this to happen. Additionally, regional cooperation is essential."

"Turkey can be a dynamic leader in the region"

Stating that energy transformation targets can be implemented and economic progress can be achieved only if we avoid regional conflicts and share a common sustainable development goal, Sachs said: "If there is turmoil in the region, these targets cannot be reached. I know that Turkey has a very important role in this regard. My confidence in your country in this respect is endless. Turkey can be a dynamic leader in the region and I look forward with anticipation to seeing Turkey in this leadership role," he said.