Davos must offer us a green route out of the global economic crisis

By Lesley Griffiths AM

As world leaders gather in Davos in a few days time, for the start of the 39th annual World Economic Forum, the contrast in the agenda from last year’s event could hardly be more stark.

The ‘diet’ served up for delegates at Davos 2008 included globalisation, water conservation and food security. The event was all neatly packaged and the organisers even enlisted the help of Lehman Brothers, as one of its esteemed ‘partners’.

Looking back, Davos 2008 was from another era as few of the delegates who attended last year’s meeting could have predicted the tumultuous events that lay ahead.

By comparison, Davos 2009 looks a considerably more sober event.

This year’s Annual Meeting – which will run between 28th January and 1st February – will address the sombre theme of “Shaping the Post-Crisis World” . It will focus on managing the current global economic crisis and shaping the post-crisis agenda, covering topics economic reform to climate change.

More than 40 heads of state and government along with business leaders, NGOs, Trade Unions and economic experts will attend, with Gordon Brown leading the charge of the UK delegation.

The Annual Meeting’s agenda – or “six programme tracks” as the organisers refer to them sum up the mood:

1) Promoting Stability in the Financial System and Reviving Global Economic Growth
2) Ensuring Effective Global, Regional and National Governance for the Long Term
3) Addressing the Challenges of Sustainability and Development
4) Shaping the Values and Leadership Principles for a Post-Crisis World
5) Catalysing the Next Wave of Growth through Innovation, Science and Technology
6) Understanding the Implications on Industry Business Models

Weighty topics indeed.

However, it must not be forgotten that despite last year’s agenda having been overtaken by ‘events’, there remains a serious ‘hangover’ from Davos 2008 that cannot be sidelined until more favourable economic conditions exist.

I am referring to climate change.

It is comforting to see this subject remains high up on the Davos 2009 agenda, however, what conclusions will be reached, are yet to be seen.

There is a growing body of opinion right across the world that says, the current global recession should not be used as an excuse by Governments, to duck the issue of tackling climate change.

I agree with this view. The economic downturn should be viewed by Governments as an opportunity, not a block, to reducing CO2 emissions. In Europe for example, member states remain committed to reducing emissions by 20% by 2020.

It is important we understand that climate change will not stop or go into reverse, just because of global economic problems. We cannot ‘park’ this problem up, to be dealt with at some unspecified date in the future. The urgency remains.

I believe Governments – including here in the UK – are currently in a very strong position to ensure we ‘climate proof’ our economies to deliver our commitments on reducing carbon emissions.

There are three ‘tools’ they can use to achieve this.

Firstly, Government funded schemes to upgrade or deliver new infrastructure projects, should focus more on those schemes that do not exacerbate climate change.

Secondly, Governments across the world who have propped-up banks in recent months, are now in a strong position to exert pressure – like never before on those institutions – to ensure investment and credit flows more easily to those companies involved in green industries or delivering green jobs.

Thirdly, Government assistance in some previously polluting industry sectors can now be used as a lever to deliver greener outcomes. A recent example of this was provided by the Swedish Government, whose support for its car industry was dependent on those companies manufacturing more emissions-friendly vehicles.

My hope is that at the end of Davos 2009, our leaders will have recognised that the problems facing the economy can be partially resolved by addressing the problems relating to the environment and vice versa.

If this route is pursued, then real progress will have been made.

For more information on the 39th World Economic Forum Annual Meeting in Davos, please visit www.weforum.org.