Last week’s Azerbaijan Grand Prix was a snoozefest. Fortunately, at least before we went racing on the streets of Baku an inconspicuous yet increasingly important event had occurred. Formula 1’s cost cap has just started to work in favour of a sustainable future.
Without a further ado. The above-mentioned event was the FIA Formula 1 Commission meeting in Geneva, which saw agreement on changes in F1 cost cap being reached.
You may wonder why we should even care?
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Formula 1 cost cap with sustainability in mind
Simple. The alteration could define the degree to which Formula 1, motorsport, but also or perhaps most crucially the world, in which you and your closest ones live in, would become sustainable. We are talking here one of the shaping factors of the years to come, your years.
With that being said, I bet any additional encouragement to keep reading is not required. Let’s get back into business then.
During the gathering in Geneva a specifically dedicated working group within the Financial Advisory Committee (FAC) proposed a brand-new exception to Formula 1 cost cap. According to the proposal, costs related to sustainability initiatives would no longer count to the overall amount permitted by the cost cap itself.
Did Formula 1 Commission welcome the change, or binned it?
Fortunately, the former. Consequently, now we are facing the era, in which the risk of teams trading sustainability-related investments for performance will be significantly lower. With such trade-offs gone, pro-environmental revolution is ready to take off. And that is great news for more than one reason.
Naturally, bigger focus on environmental concerns is likely to improve environmental performance of the Formula 1 teams in general. Financial freedom regarding things such as instalment of sustainable infrastructure, or donations to charities engaged in the promotion of environmental sustainability projects and carbon offset programmes will surely do the trick.
Cost cap turned pro-environmental incentive
On the other hand, and even more crucially, Formula 1 is standing ahead of a unique opportunity to lead the industry by example. The discussed tweak to the cost cap is a perfect incentive for the emergence of solutions that could be later scaled and become enablers of a positive change outside the paddock. The stakes are higher than you may think.
After all, at the end of the day, it is a fierce competition – just like on the racing track. It is as much about beating the rivals as it is about tackling climate change. Therefore, the message to Formula 1 is clear – the game is on. And the stakes are indeed high.
Source: FIA, Scuderia Fans