[The Editors' Verdict] Do Other Countries Not Know About the "Tragedy of the Commons"?

[Asia Economy Reporter Choi Il-kwon] In a pasture without an owner, anyone managing a ranch can drive cattle to graze. If there are not many grazing cattle, there is no particular problem, but if their number is large, the pasture quickly turns into a wasteland. This is the so-called “tragedy of the commons” caused by neglect.

Recent responses from various countries show increasing signs of the “tragedy of the commons” emerging in climate change as well. The Group of Twenty (G20) leaders replaced the specific carbon neutrality target year of “2050” with the phrase “by the middle of this century.” In particular, major carbon emitters such as China, India, and Russia strongly oppose rapid carbon reduction policies. China proposed achieving carbon neutrality by 2060, and India, after some hesitation, stated it would achieve it by 2070. Regarding the phased elimination of coal-fired power plants, the declaration only mentioned implementing it “as soon as possible,” and the phased removal of fossil fuel subsidies was declared only as a medium-term goal.

The United Nations recently expressed concern in a report that even if countries meet their pledged greenhouse gas emission reduction targets, the global average temperature will rise by 2.7℃ by 2100. This far exceeds the 2℃ increase considered a tipping point for climate disaster.

Despite the catastrophic outlook, developing and least developed countries resist climate change measures because, unlike advanced countries that have already begun responding, they find it difficult to keep up. Moreover, having already been deprived of the fruits of growth, they face a heavy burden to respond anew without opportunities for economic development. While human survival is important, the practical reality that current livelihoods cannot be easily overlooked also cannot be ignored.

To reduce carbon emissions, the use of eco-friendly energy must increase, which is challenging not only for developing countries but also for advanced nations. Especially, eco-friendly technologies are capital-intensive industries rather than labor-intensive. Developing and least developed countries also face political instability, which results in many invisible regulations. Consequently, the cost burden for capital investment inevitably increases. The International Energy Agency (IEA) estimates that an average of $3.5 trillion per year will be required in the energy sector alone over the coming decades to transition to low carbon.

Advanced countries emphasize that responding to climate change presents an opportunity to create new business. Mark Carney, former Governor of the Bank of England (BOE), recently evaluated in his book Value that “the speed at which social value is converted into economic value is accelerating due to climate change response.” To pursue net zero carbon emissions, a transformation of all economic factors is essential, and in that process, new growth opportunities can be seized. He also predicted that not only industries directly related to carbon neutrality such as energy but also finance could develop.

There are many cases where tail risks from the past become major issues at the present time. Climate response is one such case. The fact that climate response is a massive trend cannot be denied. This is why carbon border taxes and other measures are being seriously discussed, especially in Europe, to prevent the tragedy of the commons.

South Korea declared at this G20 summit that it will stop coal-fired power generation by 2050. It also announced at COP26 a national greenhouse gas reduction target of 40% by 2030. This aligns with the global public interest of avoiding the “tragedy of the commons.” However, it is hard to find any country in the world accelerating energy transition as rapidly as South Korea. Countries lukewarm about carbon neutrality treat it as a non-obligatory matter and aim to maximize their own benefits. Other countries are well aware of the “tragedy of the commons.”

This content was produced with the assistance of AI translation services.