Thinktanks seek funds to back green technologies in poor countries

New financial mechanisms to ensure the transfer of low-carbon technology to emerging economies will help achieve a meaningful breakthrough at the Copenhagen climate change conference in December, according to a report by an alliance of some of the world's leading thinktanks.

The recently formed Global Climate Network, which includes the UK's Institute for Public Policy Research, the Center for American Progress led by John Podesta, head of Barack Obama's presidential transition team, and the influential Research Centre for Sustainable Development from China, is gathering in London this week to establish a policy to fund action to fight global warming using solar power, wind, carbon capture and energy efficiency.

These include harnessing the cheap borrowing facilities available in rich countries to be targeted at low-carbon energy in poorer countries. Encouraging pension funds to finance schemes and adopting proposals that would see a proportion of countries' carbon permits auctioned off with the proceeds specifically going to developing countries are other measures being considered.

The US is unlikely to fund poor countries' efforts to introduce low-carbon technologies so financial innovation will be required, argues the network.

Podesta said: "Reaching an agreement on the transfer of low-carbon technology will be critical to the success of the global climate talks in Copenhagen later this year. Developing countries are right to call for more help with it. However... the absence of strong national policy frameworks, standards and incentives is the single greatest obstacle to the creation of markets for low-carbon technologies in developing countries.

"That situation needs to be reversed for real progress to be made in reducing emissions there. In exchange, developed countries need to do far more to help developing ones, who are still struggling to lift millions out of extreme poverty, to meet the cost of low-carbon technology policies. That's the sort of deal we need to see."

Source - The guardian