A global treaty to address climate change could cost trillions of dollars over the next few decades, but that amount is a relatively small fraction of the world’s economic output, according to an in-depth New York Times story.
The International Energy Agency says the cost will ramp up relatively slowly and will be offset to a great extent by the creation of new jobs, more secure energy supplies and reduced danger of climate disaster.
But funding continues to be one of the major stumbling blocks in ongoing climate negotiations in Copenhagen. Nations have so far been unable to put short- or long-term numbers on commitments for funding adaptation and clean energy production in poor nations. Disagreements also exist over who should manage the distribution of funds.
Four-Nation Proposal
On Wednesday Britain, Australia, Mexico and Norway released a joint paper offering funding guidelines. The paper suggests that an "emerging consensus" would like to see funds managed by a newly-created board with equal representation from rich and poor nations.
It also says that at least 50% of funding should be designated for helping developing nations adapt to the effects of climate change, such as rising sea levels and droughts.
The paper points to an earlier proposal made by Mexico suggesting developed countries should contribute to funding based on their levels of greenhouse gas emissions, the size of their economies, and the size of their populations. (Source: Reuters)
Soros Solution
On Thursday, billionaire financier Geroge Soros told Reuters he has devised a plan that could release $100 billion dollars already on hand with the International Monetary Fund (IMF).
Soros said developed nations could invest a portion of the $283 billion special drawing rights (SDRs) made available by IMF to respond to the current economic recession. If these funds were invested in clean energy projects in developing nations, carbon credits could pay the interest on the funds.
Soros acknowledged that greater political will would be needed to convince the IMF to allow this, as well as the creatiion of a larger carbon market and approval by the US Congress.
Read the full report at the link below.
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