Sep 05, 2007 - 12:27pm
The Climate Institute has today urged business leaders at APEC to call
on world leaders attending Saturday’s meeting on climate change to build
on the Kyoto framework and deliver short term greenhouse reduction
targets to create investment certainty and open up a potential $15
trillion (US) carbon market.
“Analysts suggest that global carbon
markets could be worth $15 trillion up to the middle of the century. To
effectively tap those markets and avoid dangerous climate change we need
short term targets, which create much needed certainty for business
investment.” Said Climate Institute Chief Executive John Connor.
knowing the rules for carbon markets, business cannot make informed
investment decisions. This means delayed investment, and even making
investments that continue to drive rising global greenhouse pollution
levels. Short term targets and effective markets can harness the speed
and innovation of the business community in avoiding dangerous climate
The independent Climate Institute placed a half page
advertisement in the Australian Financial Review today as the ABAC
Business Leaders Summit began its two day meeting ahead of their
briefing of APEC leaders on Saturday morning.
“The decisions the
international community makes in the next few years will determine
whether dangerous climate change can be prevented or not. An effective
international response and carbon market can only be built on a bedrock
of short-term emission reduction targets for industrialised countries.”
current Kyoto framework has created a global market which is driving
tens of billions of dollars of business investment into reducing
greenhouse pollution. Some have tried to undermine the Kyoto framework
by saying it ends in 2012 and that developing countries like China and
India remain untouched by it.
“What is not widely understood is
that China, India and other developing countries are already avoiding
substantial amounts of greenhouse pollution under the Kyoto Protocol’s
investment program called the Clean Development Mechanism (CDM).
2012, the CDM may generate around two billion tonnes of emission
reductions in developing countries – the equivalent to the 2003 carbon
dioxide emissions of Australia, Argentina, Belgium, Canada, Greece,
Mexico and the UK combined.
“Around $6.5 billion was invested in
CDM credits in developing countries in 2006 and this is expected to
leverage around $32 billion capital investment in reducing emissions.
Longer term estimates of CDM emission reductions suggest up to six
billion tonnes of emission reductions annually.
“APEC could play
an important and constructive role in building on and strengthening the
Kyoto framework. As part of this APEC leaders need to endorse the need
for binding short-term pollution reduction targets for industrialised
countries. Long term political goals are fine, but with real targets
that create real investment opportunities, business can be a powerhouse
of solving the climate change challenge.”