Cap And Trade SELF

Published on December 9th, 2009 | by Susan Kraemer

2

Developing World Assistance Likely to Bring $100 Billion Boom to Renewable Sector

December 9th, 2009 by  

One of the contentious issues at Copenhagen is how much money to give to the developing world to help avert the sharp rise in carbon emissions expected in the about-to-industrialize countries. The funds are to come from the developed world, and this fund is generally framed in the US media (and not just by Glen Beck), as a giveaway. The New York Times puts it like this: Climate Deal Likely to Bear Big Price Tag.

“The money would be used to help developing nations reduce emissions by switching to renewable energy sources like wind and solar and by compensating landowners for not cutting down or burning forests, a major source of carbon dioxide emissions.

Other funds might be used to adjust to effects of a changing climate, like rising sea levels, by building flood walls or relocating settlements to higher ground.”

[social_buttons]

Is this a “big cost”? Actually, no. This is an investment in solar, and wind, and even flood wall businesses. The real beneficiaries are the countries whose renewable energy businesses will grow from this investment. A more appropriate headline might be: Climate Deal Likely to Bring Big Boom to Renewable Sector.

This so-called giveaway is not from the developed to the developing world, but from the developed world’s governments to their own developing companies in the post carbon age. Their own renewable energy companies will benefit  – and add jobs.

How much might they benefit? Two think tanks, San Francisco-based ClimateWorks and The EU’s Project Catalyst; whose work has helped shape the negotiations in Copenhagen estimate that this investment globally will amount to about $100 billion by 2020. Just from this assistance fund.

About half the funds would be generated by cap and trade. The Waxman-Markey climate bill in the House, which carved out part of the funds created by cap and trade to pay for this “investment in the developing world”, could only get an upper limit of $8 billion by 2030, with the highest ratio of Democrats to Republicans (America’s Fossil Party) that congress has; so the Senate will likely not be able to do better than that.

In the absence of sensible legislation from a stalemated congress, President Obama has gone and made some unilateral deals of his own with the two largest of these renewable investment opportunities: China and India.

But, even without US participation, the European Trading System, has a growing global market in carbon emissions credits. Europe’s cap and trade market is expected to be generating $2 trillion a year by 2020.

EU-based renewable energy companies are already far ahead of their US counterparts thanks to European cap and trade that grew out of its signing of Kyoto in 1997. Without US participation; the funding for this developing world “assistance” will help further grow solar and wind and flood wall companies from Europe.

Every government in the developed world should be beating down the doors for this $100 billion opportunity to build its green job base, rather than letting tiny NGOs like SELF flounder along looking for bake-sale level charity to fund its work.

Related stories:

EU on Track to Meet or Exceed Original Kyoto Goals: Estimate 13% Below 1990 Level

What the US Senate Could Learn From the European Cap and Trade System

Cap and Trade 101: Why “Free” Allowances Are OK

Cap and Trade 101: How a “Cap” Ensures Carbon Reductions

76% of Cap and Trade Bill Allowances Benefit People Not Polluters

Waxman-Markey Cap and Trade Will Pay For Itself, CBO Finds

Image: SELF

Source: The New York Times 
 
Get CleanTechnica’s 1st (completely free) electric car report → “Electric Cars: What Early Adopters & First Followers Want.”
 
Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter.

 

Tags: , , , , , , , , , , , , , , , , , , , , , , ,


About the Author

writes at CleanTechnica, CSP-Today and Renewable Energy World.  She has also been published at Wind Energy Update, Solar Plaza, Earthtechling PV-Insider , and GreenProphet, Ecoseed, NRDC OnEarth, MatterNetwork, Celsius, EnergyNow, and Scientific American. As a former serial entrepreneur in product design, Susan brings an innovator's perspective on inventing a carbon-constrained civilization: If necessity is the mother of invention, solving climate change is the mother of all necessities! As a lover of history and sci-fi, she enjoys chronicling the strange future we are creating in these interesting times.    Follow Susan on Twitter @dotcommodity.



  • Hydrolyze

    Hi there! Excellent concept, but could this genuinely function?

  • Hydrolyze

    Hi there! Excellent concept, but could this genuinely function?

Back to Top ↑
  • Advertisements

  • Top Posts & Pages

  • Cool Cleantech Events

    Low Voltage Electrification Event, April 25-27. Detroit, Michigan (US)
    Delve deep into the benefits and challenges associated with EV power supply.

    Offshore Wind Market Development USA, May 11-12, Boston, Massachusetts (US)
    Network and establish your business in one of North America’s largest energy industries.

    Energy Storage USA, June 15-16, San Diego, California (US)
    Only event in the United States focused exclusively on the commercialization of storage.

    More details are on: Cleantech Events.

  • Advertisement

  • CleanTechnica Electric Car Report

    Electric Cars Early Adopters First Followers
  • Tesla Model 3 Review by EVANNEX

    Tesla Model 3 Review from EVANNEX
  • Tesla Model 3 Exclusive Video

    Tesla Model 3 Video
  • Tesla Model 3 Exclusive Pictures

    Tesla Model 3 Video
  • Tesla Model X Review #1 (Video)

    Tesla Model X Review from new owners Zach Shahan
  • Tesla Model X Review #2 (Pictures)

    Tesla Model X Review from Kyle Field
  • Tesla Model S Long-Term Review

    Tesla Model S Long Term Review from Kyle Field
  • Nissan LEAF Long-Term Review

    Nissan LEAF Long Term Review from Cynthia Shahan
  • Interview with Michael Liebreich

    Interview with Michael Liebreich
  • Interview with Akon (Teslas & Solar)

    Interview with Akon Tesla Model S Tesla Model X Solar Power Africa
  • Interview with Dr Nawal Al-Hosany

    Interview with Dr Nawal Al-Hosany
  • Interview with Gro Brundtland

    Gro Brundtland
  • Interview with President of Iceland

    President of Iceland Ólafur Ragnar Grímsson
  • Interview with Nick Sampson

    Faraday Future VP Nick Sampson
  • Interview with Dipal Barua

    Dipal Barua 1st ZFEP WInner
  • Interview with Jonathon Porritt

    Jonathon Porritt
  • Interview with Clint Wilder

    Interview with Clint Wilder
  • Interviews with Solar Impulse Pilots

    Bertrand Piccard Andre Borschberg
  • Check out more CleanTechnica Videos.

  • Join The Solar Revolution!

    Edison-solar-energy solar-energy-spill-nice-day
  • Cost of Solar Panels

    cost-of-solar-down
  • Search the IM Network


Shares