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| Climate Solutions Businesses call for refocus on role of business The low-carbon investment needed to stop rising greenhouse gas emissions is impossible to achieve without massive applications of private sector capital. The private sector is looking urgently for investment signals out of the next United Nations Ministerial negotiations in Cancún at the end of the year. Due in part to market uncertainty, 2009 investments in the Clean Development Mechanism have dropped 50 percent. Reversing this trend will require an immediate refocus by negotiators on financing, market mechanisms and the role of business in delivering on global climate goals. The Climate Solutions Business Coalition represents billions of dollars in private capital in the clean energy sector, investor community and carbon markets. In a statement released today, Climate Solution Businesses call for the following outcomes by Cancún: 1) Business urges the Parties to set aside their "nothing is agreed until everything is agreed" mindset and take actionable decisions in Cancún on critical issues such as technology, REDD+ and capacity-building. 2) Business needs to see a firm plan to mobilize public and private sector investments to reach the US$100 billion target by 2020 at COP 16 in Cancún. Following through on this promise from Copenhagen will be a crucial step towards building confidence among the Parties as well as the private sector. 3) Despite the importance of reaching the US$100 billion target, the finance challenge is in the range of trillions, not billions. The Kyoto Protocol and the current LCA text offer a foundation to develop the market-based framework the private sector needs to meet that challenge. The next step is to strengthen this foundation by taking decisions in Cancún that lead to clarity on post-2012 market instruments. According to Bloomberg New Energy Finance, global clean energy investments in 2009 were $164 billion dollars. The IEA forecasts that US$530 billion per annum will be required in the form of additional investment in low-carbon energy, beyond business as usual and capital redirected from conventional to low-CO2 technologies. The private sector can deliver the scale of investment required if negotiators work in partnership with business to create new vehicles for business input and provide certainty on the market instruments available. write your comments about the article :: © 2010 Construction News :: home page |