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

Wednesday, 31 Aug 2011 09:09 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  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.

Share:
  Comment  |
   Contact Us  |
  Print  
  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
 
Email:
Country
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

Oscar de La Renta, Designer for First Ladies, Celebrities, Dies at 82

Monday, 20 Oct 2014 22:01 PM

Oscar de la Renta, the worldly gentleman designer who shaped the wardrobe of socialites, first ladies, and Hollywood sta . . .

CEO of French Oil Giant Total Killed in Moscow Plane Crash

Monday, 20 Oct 2014 22:44 PM

The CEO of French oil company Total, Christophe de Margerie, died in a plane crash at a Moscow airport after his private . . .

Obama to Sharpton: Dems in Key Races Support Me

Monday, 20 Oct 2014 22:31 PM

Some Democrats running for re-election or challenging Republican incumbents in next month's midterm elections have dista . . .

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.

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