Every eight years, the Intergovernmental Panel on Climate Change
publishes a report which analyzes the impacts of climate change and makes
calculations for future outcomes for the earth. The latest report analyzed over
14,000 academic papers to get the most comprehensive picture on climate change.
It cannot be overstated: This report is the most important
published in climate science. The 2013 report was the precursor to the Paris
Climate Agreement. The 2021 report will be critical to future pledges.
How Warm Will the World Get?
The world has been talking of net-zero by 2050 to limit global
warming to under 1.5C. Whenever someone talks about the Paris Agreement, they
are referring to this 1.5C pledge. The new report shows that the greenhouse
gasses released by human activities already have resulted in 1.1C of warming
since 1900. And that’s just the start. Over the next 20 years, global
temperatures are expected to surge past 1.5C of warming in every likely
mitigation scenario.
The ‘best case’ mitigation scenario assumes we will reach net-zero
in advance of 2050, which is considered very unlikely, and then to start
capturing greenhouse gases, also unlikely. This ‘best case’ scenario still led
to global temperature rise of 1.6C.
More likely scenarios, such as hitting net-zero by 2050 lead to a
1.7C rise. Continuing emissions as they are today will cause a 2.0C rise.
Increasing emissions—like we have seen for the last 20 years—would cause a 2.1C
to 2.4C rise by mid-century and a 3.6 to 4.4C rise by the end of the century.
What Does This Warming Mean?
Exceeding the 1.5C threshold will be catastrophic. Eight percent
of plants will lose their geographic range, which would require global
agricultural systems to adapt to mitigate global food shortages. Nine percent of
the global population already faces food insecurity without increased pressure
on supply.
Extreme heat waves that once happened every 50 years before 1850 now
will happen every six years. The world’s oceans will rise at least half
a meter. Hundreds of millions of people will be plunged into food scarcity and
deeper poverty.
If temperatures hit 2.0C, the impact of almost everything doubles:
16 percent of plants lose their geographic range. The once-in-50-year extreme
heat wave will happen once every 3.5 years. In short, we would be risking an
extinction-level event.
This is all without discussing low-likelihood, but extremely
high-impact events that could occur. For example, chain reaction events that
cause ocean currents to change which drastically alter weather systems
throughout the world in a catastrophic or totally unpredictable manner.
What It Means for Travel
First, the travel landscape will literally change. It is now
almost certain that many places in the world will be underwater before 2050. The
Maldives, which sit 1 meter above sea level, and beachfront Miami are unlikely
to be tourist locations in the near future. As these realities manifest,
governments will have no choice but to take action, if they have not already.
We expect nations to increase implementation speed and cost of carbon taxes.
This will lead to vastly increased airfares and the end of the ‘low-cost’
travel boom seen in much of the world. Governments also will begin setting
carbon reporting and capping requirements to ensure businesses reduce their
emissions. If left too late, this will be expensive for businesses to
implement.
Many nations will accelerate plans to invest in high-speed rail
infrastructure to provide a low-carbon alternative to short- and medium-haul
aviation. High-speed, low-emission ferries will begin for longer-haul aviation. We
expect this to be in particularly high demand on transatlantic routes, where today
flights are still the lowest-carbon way to cross the Atlantic for the average
person.
Flight shaming already has increased, and it will lead to
shareholder rebellion—we have seen as much at both Booking.com and Exxonmobil
in the last few months. We expect this issue will hit business travel especially
hard.
Carbon emissions aren't only about air travel. Demand for electric
vehicles will increase. So far, no major car rental company has made commitments
on electric vehicles. They will either respond to pressure or find themselves
scrambling to catch-up and acquire upstarts.
Steps Business Should Take Today
The Covid-19 pandemic has shown that well-prepared businesses are
the most resilient. Businesses need to calculate their travel carbon footprints
accurately. This should use more than averages, so travel managers can spot travel
program problems, which inversely are carbon reduction opportunities.
Once a business knows its travel carbon footprint, it should put
in a plan to try and reach net-zero. As the recent IPCC report shows, the
goalposts have moved, and net-zero must occur before 2050.
Finally, businesses need to find ways to communicate their carbon
emissions realities and goals to their employees so the grassroots of a
business can take the steps required to deliver change.