Block’s Indicator of Sustainable Growth

by Ray Block

No matter how much progress is made by the developed world in carbon reduction, renewable energy and energy efficiency, there will be an equal need for  meaningful climate change by the poorer countries. 

However you calculate it, there is a great deal of money involved. 

The broad assumption,egged on by China, which ironically is becoming the darling of the UN on climate change, is that the richer countries must assume the financial burden.

 The contributions are expected to be in place annually for periods beyond 2020. So, how much funds are involved?

Climate Works Foundation estimated that the funding costs for energy savings and low carbon technologies would be in the order of 95 to 130 billion euros a year (US$135 to 185 billion) between 2010 and 2020.

The spending figures include up to 80 billion euros ($114 billion) for the developing countries to meet climate change commitments.

Both the United Nations (UN) and European Union (EU) estimate that the developing world would need to find around 100 billion euros ($145 billion) each year on climate change.

The EU with its 27 -country community say they are prepared to contribute from  two to 15 billion euros a year to the UN for the 11 year period to 2020.

There is an unofficial suggestion that the contribution would start with the two billion euros in 2012, and move up to the 15 billion euros over the period to 2020.

The EU suggest that domestic and private financing in the developing countries should provide 20 to 40 per cent of the 80 billion euros. Another 40 per cent  “could be found through international public financing.”

The EU suggest that each country’s contribution would be assessed according to a scale of emission levels and ability to pay. The poorest countries would be exempted from any commitment to put forward their own plans on low emissions.

Another EU suggestion is the creation of a Forum on International Climate Finance to monitor and review  “gaps and imbalances” in the financing and results of the policy.”

The US Administration hasn’t nominated any dollar figure for a contribution, and the other developed countries have been silent on the issue.  The EU is looking for the US to put up about 12 billion euros a year.

How much?