Consortium urges climate change investment
A consortium of climate change investment groups have called for long-term climate change and clean energy policies to allow for significant opportunity growth in clean and renewable energy technology and energy efficiency.
The 2011 Global Investor Statement on Climate Change argues that increased investment opportunities will also lead to substantial economic benefits, such as new job creation, business stimulation, technological innovation and overall economic recovery and sustainable ling-term economic growth.
“In the Cancun Agreements in 2010, governments agreed to reduce global greenhouse gas emissions so as to hold the increase in global average temperature below 2 degrees Celsius. To achieve this goal, massive investment in low-carbon energy will be required. For example, in its 2010 World Energy Outlook, the International Energy Agency (IEA) has forecast that US$13.5 trillion (or someUS$500 billion per year) in clean energy investment and spending, in addition to the commitments that have already been made by governments, will be needed between 2010 and 2035.,” the statement reads.
The consortium found that the need for action is urgent, but current levels of investment in low-carbon technoligies continue to fall well short of what is needed. The statement found that only clear, cogent and well executed policy has the ability to attract substantial private investment.
“Private investment can and must play a critical role in addressing the risks and opportunities posed by climate change. However, private sector investment will only flow at the scale and pace necessary if it is supported by clear, credible and long-term domestic and international policy frameworks – “investment-grade climate change and energy policies” – that shift the balance in favour of low-carbon investment opportunities,” the statement concluded.
Prime Minister Julia Gillard has used the report to vindicate the suite of legislative measures introduced to Parliament over the last weeks, with particular emphasis being placed on the $10 billion Clean Energy Development Fund, which the Federal Opposition has promised to disband if they win the next election.
The full report can be found here