Climate change is intensifying while geopolitical divisions deepen, creating unprecedented challenges for global sustainable development. On one hand, climate action has gained broad international consensus, with China's new energy revolution reshaping global industrial structures. On the other hand, anti-globalization undercurrents and rising populist politics cast shadows over multilateral cooperation, with policies like the EU's Carbon Border Adjustment Mechanism sparking debates between environmental protection and trade protectionism.
Meanwhile, underlying social trends—including aging populations and the explosive growth of artificial intelligence—are fundamentally altering traditional relationships between economic development and environmental protection. Does AI serve as a tool for green transformation or as a driver of increased resource consumption and environmental burden? How can aging societies balance innovation momentum with sustainable futures?
In a recent dialogue, Eric Neumayer, Vice Chancellor of the London School of Economics and a prominent environmental economics professor, addressed these pressing questions. As a leading scholar in sustainable development, Professor Neumayer analyzed the complex interplay between climate policy, global cooperation, and future trends, offering unique insights on building an economically efficient, green, and inclusive sustainable future.
When asked about skepticism toward climate change and its perceived low priority compared to economic growth, Neumayer emphasized that climate change is undeniably real and represents one of humanity's defining challenges this century. As a trained economist, he acknowledged that addressing climate change involves costs, but argued that climate action can yield positive economic spillovers in the long run. He cited China's leadership in affordable solar panels and wind turbines as beneficial both globally and for China's own economic growth, potentially sparking a new industrial revolution centered on renewable technology. He advocated for market-friendly policies like environmental taxes and tradable permits over command-and-control approaches to enable low-cost transitions to sustainability.
Regarding controversial sustainability policies, such as the EU's Corporate Sustainability Reporting Directive and Carbon Border Adjustment Mechanism, Neumayer expressed concerns about the reporting directive's bureaucratic burden on businesses, suggesting it may fail cost-benefit analysis and provoke resistance. On the carbon border mechanism, he acknowledged perceptions of trade protectionism but noted its role in enabling ambitious climate policies in Europe amid global inaction. He called for international cooperation between the EU and major economies—excluding the U.S.—to uphold a rules-based world order and avoid reliance on unilateral measures.
On anti-globalization trends, Neumayer described the current era as a deglobalization phase, historically cyclical but detrimental to sustainability. He stressed that global challenges require global cooperation, warning against narrow national interests like "America First" or "China First," which undermine environmental goals. He praised Chinese leadership for its long-term perspective, contrasting it with short-termism.
Looking ahead, Neumayer identified deglobalization and population aging as negative trends for sustainability, with aging populations reducing innovation capacity crucial for solving environmental issues. He described AI as a double-edged sword: while energy-intensive and potentially harmful if powered by fossil fuels, it holds promise for grid management and developing low-carbon technologies. However, he voiced concerns over AI's disruptive impact on employment and the existential risks of superintelligence, urging China to adopt a cautious approach compared to the U.S.'s unchecked AI development.