Leaders Warn of Rising Economic, Security Risks from Climate Inaction

(MENAFN) Senior political and business figures cautioned that failing to address climate change is increasingly endangering both global stability and economic resilience during a panel at the Munich Security Conference on Friday.

At a session titled “Playing With Fire: The Need for Decisive Climate Action,” California Governor Gavin Newsom took aim at recent federal environmental policy shifts in the United States. He urged faster investment in renewable energy and criticized what he described as the rollback of national climate protections under President Donald Trump.

Newsom argued that the administration has weakened cornerstone climate measures, including regulations connected to the endangerment finding that forms the legal basis for limiting greenhouse gas emissions.

“It is Code Red in terms of American leadership,” Newsom said, pointing to California as proof that environmental progress and economic expansion can occur simultaneously.

He noted that if California were an independent nation, it would rank as the world’s fourth-largest economy. According to the governor, the state operated on fully clean electricity for nine out of 10 days last year, with renewable sources accounting for roughly two-thirds of total energy production.

Since the year 2000, California’s economy has expanded by 81% while emissions have dropped by 21%, Newsom said, adding that employment in the clean energy sector now surpasses fossil fuel jobs by a ratio of seven to one.

Meanwhile, Andrew Forrest, executive chairman of the Australian mining firm Fortescue, stressed that climate measures also make strong business sense. He revealed that his company, which consumes approximately 1 billion liters of diesel annually, plans to transition to a fully green energy grid beginning next year — a shift he said is expected to reduce costs by around $1 billion each year.

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