Can Developed Countries Afford $100 Billion a Year To Mitigate Climate Change?
Since the Industrial Revolution, developed countries have emitted enough carbon dioxide to cause climate change. During Copenhagen last year developed countries committed to $100 billion a year by 2020. The UN Advisory Group on Climate Change released a report last week which stated that it is possible to reach the goal of $100 billion, despite the weakened economy, for developing countries to deal with climate change.
The money will come from various sources, according to the report. The breakdown of where the money could come from is below:
- A carbon price of $20 to $25 per ton with up to 10 percent of total revenues allocated for climate change action “could potentially mobilize around $30 billion annually.”
- $10 billion from a carbon price on international transportation with 25 to 50 percent of total revenues allocated for developing countries
- Up to $10 billion from the redeployment of fossil fuel subsidies in developed countries or a financial transaction tax
- $30 to $50 billion a year could be generated through increasing carbon market flows
- Multilateral development banks could generate $30 billion to US$40 billion in gross capital flows for every $10 billion in additional resources
“Now is the time to take decisions,” the report urges. David Waskow, a senior advisor on climate change for Oxfam, says that the Advisory Group has “laid out a menu.” Waskow says that “governments and political leaders need to do now is to take items off that menu and create a meal.”
Prime Minister of Ethiopia Meles Zenawi, co-chairman of the Advisory Group, said, “As Africans, we’ve contributed virtually nothing to the environmental mess our planet is in.” He added that although the prospects for “sanity and justice do not appear good, but I refuse to give up.”
“We have narrowed down the different options,” said Prime Minister Jens Stoltenberg of Norway, the other co-chairman of the panel. “We have not made a blueprint where we solve all issues related to climate financing.”