Forex Brokers

 

Q+A-What are the risks facing U.N. climate talks?

2009-02-05 07:53:51 GMT (Reuters)
0
votes
 

Feb 5 (Reuters) - Nations will try to agree on a broader climate pact at the end of the year in the Danish capital to replace the Kyoto Protocol, the United Nations' main tool to fight climate change.

Following are responses by leading Australian climate change policy analyst Warwick McKibbin on the risks facing the Copenhagen talks. McKibbin is executive director of the Centre for Applied Macroeconomic Analysis at the Australian National University in Canberra.

APART FROM THE WORLD FINANCIAL CRISIS, WHAT OTHER RISKS DO THE TALKS FACE?

The financial crisis is upfront and in your face and affects the ability of countries to pay for climate abatement and adaptation.

But the deeper problem it highlights is the basic notion that is trying to be negotiated, and that is to pre-commit today to a target that's out in the future where you have very little certainty on what the future will actually look like when you get there.

If you're sitting here today and you have no population growth and you're an advanced economy, you can pretty well predict your emissions are going to be roughly what they are today, plus or minus, in 20 years.

But if you're a country that could be growing at between 6 and 12 percent a year for the next 20 years, the target you pick or commit to today for 20 years' time could be orders of magnitude away from what you could afford to hit when you get there.

This shows the basic flaw in the Kyoto strategy of negotiating targets and timetables.

WHAT ARE THE MAIN DRIVERS TO GET A DEAL DONE?

There has to be a backing off of this religious zeal that all countries have to cut equally by 2050. There is no science in that at all. The science is at the global level in terms of concentrations, not at the national level in terms of emissions.

But the politics is such that every country is deemed to have a target by a certain quantity and we have to negotiate that outcome.

The main drivers to success will be when countries back-off the absolutism of targets and timetables and realise what we are trying to achieve here is a global concentration target at lowest economic cost. The question is what's the best way to achieve it in terms of minimising costs, equitable burden sharing and maximising the environmental reductions that we can achieve.

IS THERE A WAY TO DESIGN CLIMATE POLICY TO GET RICH AND POOR NATIONS TO SIGN UP TO A REPLACEMENT FOR THE KYOTO PROTOCOL?

I think there is. The first point is that you don't sit down and try to do a standardised deal for all countries to sign up to.

What you do is you first start off with trying to design a deal where the top-10 emitters will sign up because that's 90 percent of global emissions.

Secondly, whatever you design it has to be seen by those who ratify it to be in their own national interest rather than being a deal that only held together by some form of threat or sanction. Because threats and sanctions, when the crunch comes, don't work.

So the design has to be based on national actions deemed to be in a country's self interest, glued together through cooperation to create a global carbon reduction and adaptation strategy.

DO YOU SEE SIGNS THAT CHINA AND INDIA ARE WILLING TO COMPROMISE AND AGREE TO SOME SORT OF EMISSIONS TARGETS, SUCH AS SECTORAL TARGETS?

I see more signs of willingness in China than India. We've seen already that China has been willing to take fairly severe actions to be part of the global community through the WTO process.

China has a lot of domestic issues... But the more you try to centralise agreements so everybody does the same thing, the less you are able to build in national actions that are in the national interest.

IF THE TALKS FAIL, OR STALL, WHAT THEN?

These talks never end in failure. There's always a press release which is based on moving forward and greater cooperation in which countries pledge to take action at some future date. But nothing much happens because the framework being negotiated is not designed appropriately.

Would people regard the Kyoto Protocol of 1997 ending in failure? I would say absolutely because emissions today are well in excess of any forecast people made in 1997, let alone what the targets were in 1997.

I think all of these talks have failed but all of the outcomes have looked pretty good from a political point of view because politicians have committed to targets that were outside the political cycle that they worry about. (Reporting by David Fogarty; Editing by David Fox)

 
Content Provided by
Reuters
Reuters
Reuters is the largest international news agency -- providing professionals around the world with stories that move the markets.


  • Comments


Add a Comment
Title:
Your Opinion:

Forex
Indices
Commodities
Rates & Bonds
 
1.3670
-0.0007
-0.051%
1.5061
+0.0004
+0.023%
90.22
-0.31
-0.342%
0.9128
-0.0018
-0.197%
1.0194
+0.0001
+0.010%
80.44
-0.03
-0.03%
  • Central Banks Rates
FED0.00%-0.25%
ECB1.00%
BOE0.50%
SNB0.25%
RBA4.00%
BOC0.25%
RBNZ2.50%
BOJ0.10%
 
 

  • Webmaster Tools

  • Sponsored Links

  • Automatic Forex Trading, Never Miss A Trade
    Proven Strategies Execute Trades For You

  • No Commissions, Fast Execution
    100:1 Leverage, $200 Bonus, 24/7

  • Open an Islamic Account with AvaFX.
    Halal Trading, Pay No Interest.
 
 

Special Offers: