The world’s most powerful leaders lectured about the pressing need to address climate change, encourage a green economic recovery, and expedite financial flows to developing countries at the G20 summit in Pittsburgh. But real action on most environmental fronts was substantially absent from their final communiqués. The G20 is typically reserved as a forum for central bankers and finance ministers to discuss global cooperation in the international financial system, but this summit was attended by the heads of government, and dealt more broadly with the global economic recovery, jobs, and the transition from an “era of irresponsibility” to one with “policies, regulations, and reforms to meet the needs of the 21st century global economy.” While government leaders deferred real action on climate change to later meetings, they reaffirmed their serious commitment to “reach agreement in Copenhagen through the United Nations Framework Convention on Climate Change (UNFCCC) negotiations.”
The economists in the room might have preferred to exploit the benefits of specialization and keep financial and climate problems separate. But finance represents the fourth critical piece of international climate policy, completing the quartet that includes mitigation, adaptation, and technology, and is squarely the responsibility of those who control the world’s biggest purse strings.
The most significant outcome that related to climate change was a general agreement that “inefficient fossil fuel subsidies” should be “phased out and rationalized over the medium term” while simultaneously protecting global citizens from energy poverty. Information from the Organization for Economic Co-operation and Development (OECD) and the International Energy Agency (IEA) indicated that removing global fossil fuel subsidies, valued at over $300 billion annually, would result in emission reductions of roughly 10% by 2050. Removing these subsidies would reduce market distortions and wasteful consumption, and encourage investments in renewable energy. Figuring out exactly how the subsidies would be cut was deferred until November, when the G20 finance ministers meet in Scotland.
British Prime Minister Gordon Brown also called for annual transfers of $100 billion to developing countries to help them adapt to climate change, and other countries suggested different amounts and mechanisms to raise the money. But developing countries were skeptical that monetary pledges would be realized, considering a history of unfulfilled promises such as the UN’s 1970 0.7% pledge for official development assistance, and the inadequate financial flows currently apportioned for immediate threats like AIDS, malaria, and basic water and sanitation.
In the run-up to Copenhagen, national climate change positions continue to be updated and released. An overview of large global emitters is presented below.
By Jeff Beyer .(JavaScript must be enabled to view this email address)
