Analyst: UN’s $100B Climate-Change Plan Costly Boondoggle

Wednesday, 31 Aug 2011 09:09 PM


  Comment  |
   Contact  |
|  A   A  
  Copy Shortlink

A fund to help channel $100 billion in climate-change aid annually to developing nations should encourage private financing instead of counting mostly on money from cash-strapped industrialized countries, Bloomberg New Energy Finance said.

An international panel is working to create an endowment depending primarily on donations from governments, which is “a recipe for failure,” Michael Liebreich chief executive officer of New Energy Finance, said in a report today. The committee is scheduled to finish before a meeting of UN climate negotiators set for November in Durban, South Africa.

The Green Climate Fund was central to agreements reached last year by United Nations treaty negotiators in Cancun, Mexico. The world’s richest countries pledged to channel $100 billion annually by 2020, part of it through the fund, to help poorer nations reduce greenhouse-gas emissions from energy production and adapt to effects of global warming such as rising sea levels.

Investment flows that large “can only be achieved if the bulk is provided by the private sector, not the public sector,” according to the report. Developed governments “are almost without exception under extreme fiscal -- perhaps solvency -- pressure,” Liebreich said.

He suggested a network of treaties and financial incentives designed to lower risks and attract private investors for clean- energy and adaptation projects.

‘Zero Chance’

Last year, a UN panel with members such as billionaire George Soros, chairman and founder of Soros Fund Management LLC in New York, and and Larry Summers, former director of U.S. President Barack Obama’s National Economic Council, said it would be “challenging but feasible” to raise at least $65 billion by taxing foreign-exchange transactions and auctioning pollution permits.

Nations won’t participate in such proposals, Liebreich said in the report. “There is simply no point in advocating global taxes on shipping, aviation and financial transactions, and/or a global carbon price, where there is zero chance of these being adopted in the current political cycle -- possibly ever,” he said.

Climate aid can be delivered to the developing world though a Green Climate Finance Framework using private funds when possible and public money “only to deal with specific risks,” Liebreich wrote. A model for the framework could be existing export-finance banks, the World Bank, and other development banks and institutions.

Nations receiving the aid should sign an investment treaty covering policy changes that could harm revenue, such as regulations that increase costs and the ability to bring profit back to home countries, according to the report. Richer national governments should provide guarantees that private investors won’t be hurt by natural disasters, coups and defaults where new projects are financed, the study said.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Twitter to Track Which Apps Its Users Have

Wednesday, 26 Nov 2014 22:22 PM

If you use Twitter on your cellphone, the social media site will soon begin tracking which apps you use unless you activ . . .

Harry Reid: 'We Sure Do Like' Pope Francis

Wednesday, 26 Nov 2014 22:09 PM

Senate Majority Leader Harry Reid, a Mormon, says he's an unabashed fan of Roman Catholic Pope Francis. . . .

EU Presses Google for Global 'Right to Be Forgotten'

Wednesday, 26 Nov 2014 21:36 PM

The European Union is pressing tech giant Google to expand the right to be forgotten to all its search tools.
A r . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved