Believe it or not, the world’s governments could put us on track to seriously address climate change by spending just $36 billion more a year.
That small amount of funding would unlock $570 million a year in private capital.
"At a time when extreme weather events are increasingly frequent – and costly – cash-strapped governments are seeking solutions to address climate change. This investment could help stabilize global temperatures and would cost less than the $50 billion recently approved by the United States Congress for rebuilding after Hurricane Sandy," says a report released at the World Economic Forum in Davos in January.
Currently, the world spends $96 billion a year on such measures, a tiny fraction of the $500 billion it spends subsidizing fossil fuels.
"Greening the economy is the only way to accommodate nine billion people by 2050," says Thomas Kerr, Director of Climate Change Initiatives at the World Economic Forum. "There are many successful cases where governments have strategically targeted their public funds to mobilize significant sums of private investment for green infrastructure. It’s now time to scale up these proven solutions."
Climate change is already causing 5 million deaths a year and is costing the global economy more than $1.2 trillion, amounting to 1.6% in annual global GDP), according to the Climate Vulnerable Forum. In the US, last year’s price tag exceeded $110 billion to pay for recovery from climate-related disasters.
By 2030, the cost of climate change and air pollution combined is expected to rise to 3.2% of global GDP, with the world’s least-developed countries expected to bear the brunt.
For example, the World Bank’s $6 billion in climate technology funds has attracted $8 in co-financing for every public dollar spent, according to the report. Governments can attract private capital through such measures as guarantees, insurance products and incentives, combined with strong policy support.
Separately, Lester Brown has show that $110 billion a year would restore earth’s natural support systems – reforesting the earth, protecting topsoil, restoring rangelands and fisheries, stabilizing water tables, and protecting biological diversity, in his book, World on the Edge.
Other studies show how a large economy like California can reduce greenhouse gas emissons 80% below 1990 levels by 2050, and how the world can switch to renewable energy, resulting in net savings of $83 billion over the next 40 years, while creating millions of jobs.
The Green Investment Report is the result of a collaboration between companies, public finance agencies and green investment analysts, and is the first output of the Green Growth Action Alliance, a public-private group launched at the 2012 Mexican G20 to drive investment in green growth.
The Green Investment Report: The Ways and Means to Unlock Private Finance for Green Growth:
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Um no one in the climate change fight would go for this $36 billion idea. They want $100 billion per year to start with a goal of $500 billion by around 2020. The UN is not interested in only $36 billion, that hardly pays for their drycleaning.