Wednesday 06 Oct 2021 | 22:33 | SYDNEY
Wednesday 06 Oct 2021 | 22:33 | SYDNEY

Reader riposte: Climate financing


Sam Roggeveen


17 December 2009 11:12

Frank Jotzo was an economic adviser to the Garnaut Climate Change Review. He writes:

Peter McCawley is spot-on about the need for large-scale climate financing for developing countries. I share some of his pessimism about public finance, but not about all forms of climate finance.

The Copenhagen talks appear to be settling on start-up funding of $10 billion per year, mostly for climate change adaptation in developing countries: that's less than $2 per person per year in developing countries. The relatively small sums reflect how difficult it is to shave money from government budgets to send overseas — something that is all too familiar from aid. Finding the large sums of public money for an energy system revolution in developing countries will be even harder.

But it is not all doom and gloom.There are proposals for new financing sources on the table, including a levy on air and sea transport, which to my mind has a lot of promise. And if the 2010 climate talks succeed in creating a solid framework for trading emissions permits and offsets between countries, then that opens up large financing opportunities for those developing countries that implement suitable policies and are prepared to enter international verification arrangements.