The concept of sustainability has garnered an increasing amount of focus over the past few years, especially in light of the continuing pandemic. Stakeholders in the environmental arena, including governments, members of the public, the private sector, the civil society and academia, are all increasingly recognizing the need to adopt sustainable practices as a way to build resilience in island communities. Here are the top 5 trends which will help to overcome the climatic, environmental, social and economic challenges that islands face, and which will help to nurture a sense of collective purpose.
1. Sustainable Finance
According to sustainablefitch.com, the financial world is sitting up and taking notice of the need to focus on creating innovative and relevant financial instruments to more adequately address issues related to Economic and Social Governance (ESG). The term 'Impact Investment' refers to 4 main elements;
* Intentionality: An investor's intention to have a positive social or environemtnal impact through investments.
* Return Expectations: Impact investments are expected to generate a financial return on capital or, at minimum, a return on capital.
* Asset Classes - Impact investments target financial returns that range from below market to risk-adjusted market rate, and can be made across a variety of asset classes, including cash equivalents, fixed income, venture capital and private equity.
* Impact Measurement - A fundamental concept of impact investing is the commitment of the investor to measure and report the social and environmental performance and progress of underlying investments. This has the added benefit of ensuring transparency and accountability while informing the practice of impact investing and building the field. In this regard we recommend reading 'The Clean Money Revolution' by Joel Solomon.
2. Climate Positivity
This refers to a more positive, holistic and regenerative approach to combating climate change, while not diminishing the seriousness of the situation. This positivity will balance the negative and seeks to establish a new framework to not only neutralize carbon emissions, but to positively create environmental benefits.
The main sectors which will need focus are industrial animal agriculture, mobility, green buildings, and affordable clean energy. Indeed, it has been established that renewables increasingly undercut the existing operational costs of utilizing fossil fuels, therefore more economic renewables can provide developed islands a strong business case to power past coal in pursuit of a net-zero economy in 2022 and beyond.
3. Ocean sustainability
This is a crucial trend of island nations, as the 'Blue Economy' is an emerging economic paradigm that focuses on creating better stewardship of our ocean and blue resources, with the primary goal of keeping global heating within 1.5 degrees C. The ocean plays a major role in the social, economic and cultural identities of island inhabitants, so it is critical that it protected and regenerated.
Plastic pollution must be addressed as a matter of urgency in 2022, as current estimates indicate that at least 14 million tons of plastic end up in the ocean every year. Plastic debris is now the most abundant type of litter in the ocean, making up 80% off all marine debris found from surface waters to deep-sea sediments. Island countries need to be aware of the plastic's negative impact not only on the marine ecosystem, but also on food, human health, tourism and climate.
4. Innovation in nature-based solutions
Nature-based solutions are emerging as some of the most sustainable ways for islands to deal with the climate crisis. These solutions have become a trend which focuses on using biodiversity and the natural functions of healthy ecosystems to deal with some of the most pressing challenges caused by climate change, while providing numerous economic and social benefits.
The term 'Nature-based solutions' refers to the sustainable management and use of natural features and processes to tackle socio-environmental challenges; such as climate change, water security, water pollution, food security, human health, biodiversity loss, and disaster risk management.
The key to innovate in nature-based solutions is to involve as many stake holders as possible; including the local community, entrepreneurs, students, scientists, NGOs and social enterprises - support them and provide them with the necessary funds and resources to conduct R&D and to start sustainable businesses and eco-tourism solutions.
5. The Circular Economy
Perhaps one of the most significant trends of 2022 is the evolution of the circular economy. This trend is generally seen to have been rooted in the positive images of nature that emerged during the pandemic, and which prompted an increased awareness on the part of consumers about the healing powers of nature. They became more environmentally optimistic, and determined to protect this optimism by investing in eco-friendy products, as well as praticing recycling. A recent study by the World Economic Forum illustrated that, based on the current consumption patterns, we will soon need three times the amount of natural resources, which means three more planets.
The emergence of these sustainability trends and their relevance to islands all over the world show us the necessity of pursuing innovative solutions to challenges facing island communities. These trends are an important aspect of building the empowerment and resilience necessary to build a sustainable, strong and vibrant future for all islanders!
Credit: islandinnovation.co
