Copenhagen failure threatens investment in 'clean' technology
According to a new report from market research company, Frost & Sullivan,there will be insufficent financing of 'clean' technology by the private sector if theCopenhagen talks fail, slowing down the battle against climate change
With future investments in clean technology heavily dependant on the outcome of the 15th Conference of Parties (COP 15) to the UN Framework Convention on Climate Change (UNFCCC), the private sector waits to hear what target the world leaders will commit to and what mitigation actions developing countries will undertake.
Without the legislation and international agreements private companies will be timid in making large scale investments in clean technologies, according to Frost & Sullivan.
Failure of the Copenhagen Conference is likely to result in insufficient financing of low emissions projects and slow down the battle against global warming.
"The hope of private companies is that the investments they have made into low carbon technologies would remain profitable and will be protected from sudden market changes through a mechanism guaranteeing long-term carbon price stability. The emissions targets and the cap and trade system agreed in Copenhagen will determine a future price for carbon," states Frost & Sullivan Renewable Energy Analyst Zeinegul Hassan.
Some countries have already stated plans to further reduce their emissions; however, nearly all of these plans are contingent on reaching an international agreement. Japan pledged to cut 25% of its emissions below 1990 if an international agreement is reached in Copenhagen. The EU countries committed to cut 20% with a gradual increase to 30% subject to an international accord. Pledges from the US and China are crucial for such an agreement, as their decisions will motivate other countries to commit to higher targets.
Last week the US announced its intention to cut emissions by 17% below 2005 only. This is a mere 3% reduction from 1990 levels. Shortly after this, China announced its plan to cut emissions by 40-45% below 2005. In essence, this means China's emissions will still grow along with the country's economic development. The global community is not impressed, feeling that industrial countries have higher responsibilities for climate change than developing countries.
