EDITORIAL
In some respects, the current investors' dilemma on the free-fall in gold prices can be compared to the global impasse on climate change. After record highs just a few short months ago, we are now seeing headlines like the one in yesterday's Bangkok Post, "No end in sight for gold skid". The global price is at US$1,1850 (368,535 baht) an ounce, and locally the gold bullion price sank to as little as 17,700 baht per baht-weight on Friday.
Investors worldwide are trying to plot when the low point will come before prices rise to new heights, as seems likely at some point.
There is a lot of waiting on the sidelines in terms of climate change as well. Even many who acknowledge that global warming is real and probably already affecting global weather patterns say that the cost of mitigating climate change is simply too high, although it may be feasible later on. Alternative energy technologies are getting cheaper, and it may be wise to wait until they are competitive with fossil fuels.
Solar technology is undergoing rapid improvements in increasing the efficiency of energy conversion and lowering the cost of manufacturing. It was reported this month that Massachusetts Institute of Technology researchers are making progress in finding ways to produce the thinnest and most lightweight solar panels possible from materials which have the potential to surpass any substance, other than reactor-grade uranium, in terms of energy produced per pound of material.
Unlike gold, the price of solar and other alternative technologies will more than likely continue to fall for some time, following the same trajectory as almost all new technologies.
However, the very important question that must be asked is, can the world really afford to wait until the cost of alternative energy technologies is competitive with fossil fuels before taking concerted and sustained action on climate change?
Another relevant question is, how much is it costing the planet and especially future generations to avoid action on climate change by relying almost exclusively on fossil fuels for energy? These are sometimes called "unseen" costs, although they are getting more visible all the time.
But it is not only the price tag that is keeping governments around the world from endorsing UN-led efforts to forge a universal treaty on climate change by 2015.
There is also a perception _ and it's one that is in many cases covertly nurtured by oil companies and coal producers _ that the science behind climate change is shaky and indecisive, questioned even by many of the scientists involved.
However, a new study from the University of Queensland's Global Change Institute in Australia found that there is an overwhelming consensus (97%) among climate scientists that anthropogenic (human-caused) global warming is real.
Scepticism about the science persists however, and it hamstrings government leaders who wish to take action on climate change. US President Barack Obama should be commended for his speech last week indicating that he will bypass climate change sceptics in Congress and take executive action to put in place tougher restrictions on carbon emissions in the US. Citing a "moral obligation", Mr Obama also committed to working with the international community to slow carbon pollution, including the discussion of new initiatives with India and China.
The UN Framework Convention on Climate Change's executive secretary Christiana Figueres said Mr Obama's move "encourages more rapid international efforts to combat climate change by strengthening political trust, building business momentum and driving new technology solutions".
Make no mistake about it, these new technologies are coming, and much sooner than many people think, especially if they are given the funding they deserve.
We should not look only to new technological advancements, however. Energy conservation is one of the most effective ways to cut carbon dioxide emissions. Simple measures such as carpooling, cycling, taking mass transit and walking more can go a long way toward mitigating climate change if enough people make the effort.
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Article source: http://www.thethailandlinks.com/2013/06/30/waiting-on-sidelines-is-losing-the-climate-battle/
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