蜜豆视频

As China鈥檚 post COVID-19 recovery gains momentum, consumption will be a key driver. While the corresponding return to international travel is a positive for individuals as well as businesses, the potential environmental impact requires close monitoring.

In 2021, aviation accounted for over 2% of global energy-related CO2 emissions¹. Amid the path to economic recovery, the aviation industry faces a dilemma: how to balance the expected spike in carbon emissions from a post-pandemic surge in flights with its desire to return to pre-pandemic activity.

鈥淪ome industries have managed to increase economic growth and reduce energy consumption at the same time, but for others, it is challenging to balance these two goals,鈥� explains Tu, in response to a question on managing the impact of the post-pandemic economic recovery on carbon emissions.

Practically speaking, he adds, companies need to weigh the benefits of expanding productivity in the short term against the environmental implications in the long run. To address this, they need to develop a cost-effective and energy-efficient growth strategy.

One of the indicators to focus on during this period of economic recovery is energy intensity.

鈥淚f a company is able to generate more economic value for society with the same amount of energy consumption, it would motivate generation and allocation of more resources, including capital, to promote long-term technological innovation for better environmental and sustainable growth,鈥� says Tu.

Within the aviation industry, for example, this can be achieved by scaling up the production and application of sustainable aviation fuels. Or, by promoting the development of game-changing technologies such as those which utilize hydrogen as an energy source.

More broadly, gains from the development of more resource-efficient technologies and other innovations that spur greater sustainability are a priority in many regions, such as Europe.

In line with this, the European Union has introduced its Carbon Border Adjustment Mechanism (CBAM) to put pressure on companies around the world to consider cleaner industrial production over the longer term.

This landmark mechanism, as part of the European Green Deal, aims to put a price on the carbon emitted during the production of carbon intensive goods that enter the EU². 鈥淐BAM can put great pressure on companies, at least with respect to data collection and verification at a product level in addition to a company level,鈥� says Tu, when asked about the details and implications of the CBAM.

In short, companies such as Chinese manufacturers will be forced to focus on carbon emissions coming from a single production line. Manufacturers will therefore need to collect data from across the whole supply chain.

With this in mind, the CBAM will provide business opportunities, adds Tu. 鈥淎 company managing its ESG risks well will be managing the whole supply chain. Therefore, a company with strong ESG practices will stand out from its peers and gain a competitive advantage in the market, attract customers and, maybe, even reinforce pricing strategies.鈥�

Inevitably, a sustainable economic future requires companies to have a clear ESG engagement strategy. In explaining the importance of this in the interview, Tu believes there are three driving forces behind this: firstly, regulation, at both local and global levels; secondly, customers of different types; and thirdly, investors such as fund managers and private equity firms.

The ecosystem also relies on market participants such as financial institutions, industrial companies and manufacturers being able to identify business opportunities from doing the right thing, and then to implement them via products and solutions 鈥� and the entire production process 鈥� being 鈥済reen鈥�.